Ask Anything: 10 questions with Realtor Parker Creech
Parker Creech, a North Carolina native who has been active in real estate since 1977, answers your questions about foreclosure, selling a house, the real estate market and much more.
Posted — UpdatedThe very first thing a borrower having difficulty making payments should do is to contact the lender. The lender prefers to avoid foreclosure if at all possible and will usually have programs available to assist the borrower. Sometimes payment adjustments can be made, and there are some FHA programs available through the lender to assist people in this situation. The important thing is to contact the lender at the first sign of trouble. Waiting until you are behind on payments sometimes prevents the use of some available programs.
When you make a loan application with a lender, the lender is required to give you a “Good Faith Estimate” of all costs and fees associated with the loan for which you are applying. Ask as many questions as you need to have an understanding of all loan fees. The lender and your Realtor should be able to help you have a basic understanding of the fees. The lender will provide an updated estimate once you have loan approval. Keep this updated “Good Faith Estimate” to take with you to your closing to compare with your actual HUD Closing Statement and ask for a full explanation of any fees that are different and why! The time to inquire about fees is when you are in the mortgage-shopping process, to prevent “hidden fees” showing up at closing. Remember that the interest rate is not the only thing that matters when shopping for a mortgage. Using a professional Realtor and mortgage lender should prevent these problems.
Unfortunately, the boarded up condo is very detrimental to the ability to sell your condo. Few buyers are willing to invest in a property when the adjacent property or properties are in a serious state of disrepair. Until the repairs are made to the neighbor's property, any potential sale on your property would be greatly impacted. I recommend you contact the HOA (Home Owners Association) manager for an explanation as to why the delay. Also if there is an insurance problem, all owners in the association should be aware of it because they share the same master insurance policy.
If you are currently having difficulty meeting your payments, contact your lender immediately and ask for assistance. It is usually possible to negotiate a lower payment for a specified length of time, or to get other assistance programs available through the lender. The key is not to wait until you are already behind. Call when you first experience any trouble. If you are trying to get a new mortgage, the lender's decision is based on your current ability to repay the debt as well as your long-term credit history. Talk to several lenders and ask what they can offer you.
It is not unreasonable to expect an agent to negotiate a more favorable fee for listing multiple properties. However, a full-service professional agent will usually earn his or her fee by netting you more dollars at the closing table. A good, seasoned professional can negotiate on your behalf and usually make up more than 1 or 2 percent of a commission. Remember, an agent who cannot sell you on the fee probably cannot be a firm negotiator on your behalf when you need it!
Have your agent bring you a printout of the most recent comparable sales and competing listings in your neighborhood. You both need to discuss what each of you needs to do to make your unit the most desirable for the potential buyers looking at property. A price reduction may be needed as well as some painting, cleaning or redecorating, to make your condo the best buy. Some additional marketing may also be required. You need the prospective buyers to be comparing the other units to yours and determining that yours is the best value available in the neighborhood. If your agent cannot help you determine what needs to be done to achieve this goal, then you probably have the wrong agent for your property.
I would recommend you contact a real estate professional who concentrates solely on commercial properties. Many commercial agents also will specialize in franchise sales and know of potential investors that may meet your needs. Interview several commercial agents (not just from the Wilson area) to determine who will work on it, not just add your property to the listing inventory and hope someone comes along. I would need to know more about the property to recommend a specific agent.
A Realtor, acting as a buyer's agent, has a contractual obligation to review, understand and negotiate if needed, all expenses regarding the purchase, including lenders' fees for the buyer. As a loan officer, you are responsible to take the application and help process the many things required by the lender to approve the loan for the bank or investor. The investor or bank, whichever applies, brings the “gold” to the table for a return agreed upon by both parties (much more than 1 percent). The (selling) agent normally must split the paid commission with the listing agent, and then both agents normally have to split that with their respective brokers or companies. So an average of 1 percent to 2 percent is much more realistic. Also a good professional loan officer or originator will usually originate six to 12 loans a month or more, where a good Realtor may sell two to three homes a month. It is the job of both loan officers and Realtors to work together with a professional attitude to help the buyers achieve the goal of closing the property.
Not knowing your specific property or its location, I have no way of giving you a value. If you are interesting in selling, I would recommend you call a Realtor and ask for a free market analysis at no obligation. Interview more than one. If you are not ready to sell, but need a value, you could call an appraiser to appraise your property.
Not being an attorney, I cannot answer any legal implications. It does sound like you have done all you can do by writing and attempting to contact the lenders. Over time, the foreclosure process will move forward and the foreclosure will take place. There are requirements for the lender to give legal notice to the borrower of pending foreclosure. If you have already vacated the property and removed all personal property, then you can do nothing and the process will take place.
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