Carey's Colorado Springs Home Info

Summer is here! (at least it seems like it)

careyteam — Tue, 20 May 2008 00:30:44 +0000

With summer about here I was thinking about how to save money on utilities. My utility bill is usually higher in the summer then the winter due to a/c usage and lawn irrigation (plus the kids are home so the computer gets used more etc). I came across a great article from Frugal Dad (here) that I thought I would share. It hopefully will help you save some$$$.

Toilet to tap?

careyteam — Thu, 15 May 2008 14:31:45 +0000

I found this article on the Wall Street Journal website. It just reinforces what public perception is surrounding drinking water and its source. I think the Colorado Springs City Council (who acts as our utility board) is doing the right thing regarding the Southern Delivery System and increasing our water supply.

Chef Realtor

careyteam — Thu, 15 May 2008 13:09:59 +0000

This post originally appeared in February 2008 on my other blog site

“It’s supposed to be hard. If it wasn’t hard, everyone would be doing it. Hard is what makes it great.”

~Tom Hanks in A League of their Own

Chef Realtor…

Being a great Realtor is like being a great chef. It takes time, patience and the right ingredients.

If you have eaten at a really good restaurant, on a special occasion, you will know what I mean. Thankfully I have had that opportunity here in Colorado Springs because of the Broadmoor Hotel and Resort.

The chefs at the finer restaurants know how to mix up the ingredients. Same with a great Realtor only the ingredients are different. In real estate the ingredients usually consist of the following:

1 house

1 cooperating broker

1 or more buyer(s)

1 or more seller(s)

1 home inspector

1 lender

1 loan officer

1 underwriter

1 appraiser

2 or more government employees to guarantee the loan (optional)

It is the mixing of the ingredients and the order that they are added that determines how well the recipe will turn out. It used to be in the heat of the market that anyone with a pulse could sell real estate just like many who work in cafes consider themselves chefs. Not to take away from any of them but it takes creativity, passion, and experience to make a great chef (or Realtor). It also requires someone who can put the ingredients together in the right order and right amounts.

When you need a Realtor make sure that they have the experience and creativity to make the recipe turn out. After all you will remember the occasion for a long time.

Short Sales and Mortgage Forgiveness Act

careyteam — Wed, 14 May 2008 17:21:07 +0000

This post first appeared on my other blog in January 2008.

Short sales and the Mortgage Forgivness Debt Relief Act
I have been getting a lot of questions lately about the ramifications of short sales and how it impacts income taxes.

Congress passed and the President signed the Mortgage Forgiveness Debt relief act.

Let me just say here I am not a lawyer or a cpa nor do I work for the government so all of this information is just my opinion.

The act can be viewed here. I think it is a great benefit to people who have to do a short sale. The reasons for doing a short sale are many but the fear of doing one because of the tax consequences should be removed (of course you should consult a tax professional first).
If you need more information on short sales look here or here.

The act was much needed legislation and should not be looked upon as benefiting people just because they could not make their payments. The act removed the “phantom” income that was generated by a short sale. It does not encourage or discourage short sales it only fixes a problem that was not seen until the recent slow down in the real estate market.

By the way the foreclosure laws in Colorado did finally change. They were slated for change on July 1 of last year but that was pushed back until Jan 1, 2008. The new law is now in effect. We probably won’t see any fallout until closer to mid March because of the new redemption/cure period. Any questions about the changes to foreclosures let me know.

Short Sales, Loan Mods, Foreclosures–oh my

careyteam — Wed, 14 May 2008 17:19:17 +0000

This post originally appeared in the old blog in September 2007

All the news about Colorado Springs real estate seems to be bad…”The highest foreclosure rate ever”-”more people losing their homes” etc. There are options for people who are in trouble with their mortgage company. ONE THING YOU MUST KNOW: Most mortgage companies don’t want to foreclose. It costs them too much money. It is cheaper to work something out with the borrower. The typical choices are:

1. Short sale. The borrower agrees to sell but they owe more then the home is worth. The lender can agree to accept a short sale. A short sale is when the lender takes less then they are owed. It helps the borrower avoid having a foreclosure on their record and it helps the lender not own any houses. Mortgage companies are in the business of collecting mortgage payments not owning houses. If the lender agrees to a short sale there may be tax consequences to the borrower. Talk to a CPA about tax issues.

2. Loan mods-Loan modifications. A loan mod is when the mortgage company agrees to change the terms of the existing loan in hopes that the borrower will start paying again. The different types of modifications include changing the length of the loan, the interest rate, or the amount owed. Usually the lender requires a financial statement and supporting documentation from the borrower to show that they can make the new payment.

3. Forbearance. In forbearance agreement the lender agrees to take less then the monthly payment or a modified payment for a specified period of time in hopes of either getting the home sold or of getting the borrower caught up on the payments. A request for forbearance usually has to be in writing to the lender.

4. Foreclosure. This is last thing that the lender and borrower want. The foreclosure will stay on the borrowers record (supposedly) for 7-10 years. The bad news is the mortgage company will own a house. They are not setup to own real estate. The above mentioned items help both parties avoid a foreclosure.

If you are in Colorado Springs and are having trouble making your payments call me. I’m currently working with a few families on loan modifications. There is no charge for this service. Let me know if I can help.

Short Sale Recipe

careyteam — Wed, 14 May 2008 17:14:19 +0000

The recipe is really quite simple.

Ingredients:

1. A home

2. A slow real estate market
3. A mortgage on the property
4. The need to sell (can be job loss, medical etc.)
5. For extra spice add a depreciating market

Directions

Take a property where you owe more then its worth and slowly add in a slower real estate market (with possibly some depreciation if you can handle the spice–sometimes you don’t have a choice it is just spicey). Combine that with the need to sell --and you should have just the right mix for a short sale. Now all you have to do is cook it up with the lender.

So how do you cook it up (convince) the lender a short sale is the best option for all?

I’m glad you asked.

Here’s how:

Hire an agent who has done short sales.

That’s it. Not as hard as you thought.

How do you find that agent?

The same way you find most things — Referral or the web. The web is where I start any type of search so that’s a good place to start. You’re reading this blog entry so you know how to find the info. Now the agent you find should be able answer a few questions:

1. How many short sales have you done? (the answer better be more then a few and it better not be something nebulous like it seems like a thousand—get a real answer).

2. How many are working on now/how many short sale listings do you have now? (again it better be more then a few etc)

3. Do you have specialized training in short sales/loss mitigation?

4. Do you have specialized forms to use in your marketing/negotiating?

5. Do the members of your team understand the ins and outs of short sale?

6. Will you still market the home even though it is a short sale?

7. When we get an offer will you continue to market the home?

Get answers to these questions that you like and you should be good to go.

Because I know people will ask here are my answers to the questions:

1. It seems like a thousand (just kidding! Wanted to see if you were paying attention). We have closed about 15 in the last year plus we have done about a dozen loan modifications for people.

2. I have 4 short sales in negotiations and 4 listed for sale. I also list bank owned/REO property so I understand what drives the banks (not always $ as we see $)

3. I am a trained loss mitigation consultant and I have helped dozens of people do short sales or loan modifications (see my article here about loan mods etc). I don’t charge for the loan mod consultation services by the way so if you need help call. I’m currently the V.P. of the local foreclosure prevention group—Pikes Peak Foreclosure Prevention Partnership (PPFPP). We currently get hundreds of calls every month on our hotline.

4. Yes we have developed many forms over the years that help us have an edge not only when negotiating but also when working with an offer.

5. My transaction Coordinator (TC) is well versed in short sales and will be deeply involved in the process.

6. Yes I still do my standard marketing plus a little more. If you need a detailed listing of what I do let me know.

7. Yes for a while at least. Once we have bank acceptance we usually change the status of the property to pending in the mls.

That’s the recipe in a nutshell.

I’m here to help. Even if you just have questions feel free to call or email

First new entry at the new blog!

careyteam — Wed, 14 May 2008 16:25:42 +0000

This is my first entry at my new blog location. I will be migrating over the relevant articles from the old blog. Also I will be updating the information I have on foreclosures and short sales. I can’t wait to get this new venue up and running.