Over the last several months I have had several people contact me in need of selling their investment properties.

The problem was that they owed more than the homes were worth.  That’s where a short sale comes in.  You may not know that a short sale can work for investment property and not just for a primary residence. 

With a short sale we have to prove that the seller has a financial hardship that requires them to sell the home.  Perhaps the rent amount is not sufficient to cover the carrying cost of the home.  Perhaps a loss of job or medical condition requires the home to be sold.  Our team works with the areas leading short sale attorney.  We provide a checklist with all the documentation required so that our clients can fill this out and get it to the attorney even before we have a contract on the home.  The attorney will use the documentation to prove the financial hardship and negotiate with the bank to take less than what the seller owes.

As with any short sale, the process will take a long time – usually 90 days to get an approval from the bank.  Because the property is a second home the bank may place a deficiency judgment against the seller for the balance of what is owed.  Our attorney works to make sure that there is no further liability to our clients in this case.  Also the short sale is more likely to go through if there is just one mortgage on the property or both mortgages are with the same bank. 

The bottom line is a short sale can work for sellers in need of selling an investment property or second home.

Our team helps home sellers, buyers and investors in the Atlantic County and Atlantic City area.

You can reach me at 609-484-9890 ext. 132.

Thank you and best wishes, Matt

Here are a few properties that are great buys. Please feel free to forward this email to anyone who might be interested. Reply back or call if you are interested in any of the properties. Contact us asap before these deals are gone.

Atlantic City – $22,225: 2 bed, 1 bath single family semi detached. BANK OWNED

Galloway – $159,900: 3 bedroom, 2 full bath, 2 half bath, finished basement, large home, one acre. BANK OWNED

Egg Harbor Township – $245,000: 4 bedroom, 2.5 bath, Family room, 2 car garage, full basement. BANK OWNED

Egg Harbor Township – $127,500: 3 bedroom, 1.5 bath, 1 car garage, single family, gas heat, central air. BANK OWNED

Mullica Township – $354,900: Incredible dream home. 5 bedrooms, 4 full bath, 1 half bath, 3755 square feet, basement and two car garage on acreage. BANK OWNED

New Listings:

Egg Harbor Township – $200,000: 3 bed, 2 bath, full basement, quiet street, 3/4 acre lot.

Price Reductions:

Galloway/Smithville – $94,500: 1 bedroom first floor condo.

Galloway – $83,000: First floor one bedroom condo. Affordable fees. Quiet development.

Galloway – $117,000: Perfect completely remodeled first floor condo. 2 bedroom, l large bathroom, dining area.

Northfield – $249,900: 3 bedroom, 1.5 bath, 2 car garage, quiet and beautiful street.

Absecon – $124,900: 2 bedroom, 1 bath, 1 car garage.

Call me at 609-484-9890 ext. 132 if you or someone you know may be interested in any of these properties.

Best wishes, Matt

The Tax credit was extended to home buyers who were already under contract prior to the end of April.  Now the buyers who did not close on their home yet have until September 30th to close on the home.  This is great news for buyers who had a delay in their closing date or who were under contract to purchase a short sale and did not get bank approval yet.

Here is the publication by the IRS confirming the news about the extension and also referencing what is required by the First Time buyers and Long Time Resident to claim their credits. http://www.irs.gov/newsroom/article/0,,id=225079,00.html

If you have any additional questions regarding the tax credit contact me at 609-484-9890 ext. 132.

Best wishes, Matt

Here are a few properties that are great buys. Please feel free to forward this email to anyone who might be interested.

Please call if you are interested in any of the properties. Contact us asap before these deals are gone.

Egg Harbor Township – $94,900: 3 bed, 1 bath single family. BANK OWNED

Linwood – $150,000: 3 bed, 1 bath single family. BANK OWNED

Galloway – $189,900: 3 bedroom, 2 full bath, 2 half bath, finished basement, large home, one acre. BANK OWNED

Galloway – $279,900: Incredible dream home: 5 bedrooms, 3 baths, full basement, 2 car garage, 3072 sq. ft. BANK OWNED

New Listings:

Egg Harbor City – $164,900: 3 bed, 1.5 bath, full basement.

Galloway/Smithville – $99,500: 1 bedroom first floor condo.

Absecon – $129,900: 2 bed, 1 bath, 1 car garage.

Best wishes, Matthew.

Call me at 609-484-9890 ext. 132 if you are interested in any of these properties.

Dangers Of Short Sales For Home Buyers

This list includes many of the dangers and things that can go wrong for buyers purchasing a short sale.

1. Time: It will take 5 to 6 months or longer to get an answer from the bank.

2. During that time home values may continue to decline.

3. If the bank approves the sale in may no longer appraise at the sales price.

4. It the bank approves the sale you will often have just 30 days to close creating a rush to get all the necessary requirements completed.

5. Interest rates potentially may increase. If rates increase you may no longer be able to afford the home.

6. If the property is vacant the condition will continue to decline while you wait.

7. If the property has a well and septic these systems will deteriorate if they are not used while the house sits.

8. Sales are in as-is condition. The buyer is responsible for all certifications and repairs.

9. Repairs may require buyer to use and FHA 203K rehab loan which could prolong the closing process. This loan also has a higher interest rate and fees.

10. The bank and seller will not fix any home inspection items or items required by the lender. This is the responsibility of the buyer prior to closing.

11. The seller could have second mortgages or additional leans which could hinder the sale.

12. You will go months without communication from your agent without any updates from the seller or bank.

13. You will most likely not get the $8,000 tax credit or $6,500 tax credit.

14. The bank may not approve the sales price and you may have to increase your offer.

15. While you are waiting you will miss out on other potential good buys.

16. More than 70% of short sales do not go through due to various reasons including those listed above. 

Please contact me at 609-484-9890 ext. 132 to learn more about the dangers and opportunities involved in buying a short sale home.

Best wishes,

Matt

(c)2010 Matthew Haviland – HavilandGroup.net

Here is a list of FHA approved condominiums in Egg Harbor Township, NJ 08234:

BAYPORT CONDOMINIUM

COUNTRY PLACE

HEATHER CROFT

LAKESIDE ESTATES

OXFORD VILLAGE

These condos are approved for as low as 3.5% down payment and possibly 100% financing zero down payment.

Best wishes,

Matt

Dear home sellers, Please view the attached market statistics.

As you can see prices are still falling. The average priced home last year lost $30,000 in value for the year. Home prices are continuing to decline about $100 a day.

The main factor in determining price is supply and demand. Supply and demand is based on our local economy. In Atlantic County our economy is dependent on the Casino industry. You are probably aware of the many layoffs that have taken place over the last few years. In fact our unemployment rate in Atlantic County is 13%. We are faring worse than the national unemployment of 9%.

If people are loosing jobs they can’t afford to buy homes. Even those who are still working at casinos are facing less pay due to the lower tips they are receiving. Our bad economy is the main reason prices continue to fall.

Here are some reasons to sell right now:

The never before offered $8,000 tax credit for first time home buyers and $6,500 tax credit for home owners when they purchase home is 49 days away from expiring. (Buyers must be under contract by April 30th.) Most buyers will buy in the next 49 days and demand should decline after the end of April.

Interest rates have been at historic lows because the government has been purchasing mortgage backed securities. At the end of March they will stop this practice and the securities will be sold at market price. For every one percent increase in rate the price will the purchasing power for buyers will drop 10%. So if a buyer can afford a $200,000 home at 5% interest rate and the rates go to 6% they can only afford $180,000.

Also the other coming threat is more bank owned homes and short sales coming on the market. We still have not seen the next wave of foreclosed homes hit the market. Maybe you’ve noticed homes in the area that have been sitting vacant for months or even years. Banks are so backed up that it is often taking 2 years to foreclose on them.

So the bottom line is things are going to get worse and not get better for a very long time. The question you need to ask yourself is do you really need to sell the home in the next 5 to 6 years? If your answer is yes then we need to aggressively position your home to sell now and for top dollar. If not then perhaps it’s better to stay in the home until the prices rise again in the next 10 to 14 years.

If you need to sell your home now.  Contact me now at 609-484-9890 ext 132.

Best wishes,

Matthew Haviland

The Haviland Group

Private sellers and investors can now sell their property to FHA buyers whithout having to wait 90 days.

This is good news for investors who are looking to purchase and flip properties quickly.

Contact me for further details and restrictions.

Also, we work with investors and will help them analize a proeprty before they buy it.  If you are interested in investing in real estate please call me at 609-484-9890 ext. 132.

Best wishes,

Matt

Here are a few properties that are great buys. Please feel free to forward this email to anyone who might be interested. Reply back or call if you are interested in any of the properties. Contact us asap before these deals are gone.

Egg Harbor Township, NJ – $97,900: 2 bedroom, 1 bathroom, on 1 acre. BANK OWNED

Egg Harbor City, NJ – $59,500 2 bedroom, 1 bath, basement. BANK OWNED

Galloway, NJ – $200,000 3 bedroom, 2.5 bath, full basement, garage, built in 2005. BANK OWNED

Contact me or call 609-484-9890 ext 132 to get these properties before they are gone.

Matt

Here are a few properties that are great buys. Please feel free to forward this email to anyone who might be interested. Reply back or call if you are interested in any of the properties. Contact us asap before these deals are gone.

Egg Harbor Township, NJ – $97,900: 2 bedroom, 1 bathroom, on 1 acre. BANK OWNED

Egg Harbor City, NJ – $59,500 2 bedroom, 1 bath, basement. BANK OWNED

Galloway, NJ – $200,000 3 bedroom, 2.5 bath, full basement, garage, built in 2005. BANK OWNED

Contact me or call 609-484-9890 ext 132 to get these properties before they are gone.

Matt