Essential Techniques and Resources for Success

Will a Loan Modification Help you Lower Your Mortgage Payments and Avoid Foreclosure?

by CRESTICO | Mar 27, 2009 | CRESTICO

Will a Loan Modification Work for you?

The term "Loan Modification" is one that is being used often and repeatedly in the news and society today. In spite of its prevalent use, many people are not sure of what a loan modification is exactly. Sure, it is a "modification" of a "loan," but beyond that, how can you tell if a Loan Mod, as it is often called, is right for you?

First, you have to know what it is. A Loan Mod is basically an alteration of the existing terms of a loan. These terms can include the amount/due date of monthly payments, the interest rate, term or duration of payments on the loan. Any alteration that does take place, however, can only be done with the approval of the Lender. This process of working with the lender to alter the terms of the loan usually comes about when a person can no longer afford to timely make the payments on the loan. Often, engaging in and completing a loan modification can save a borrower from defaulting on a loan.

A vast majority of borrowers that are currently seeking Loan Mods are borrowers who have ARMs. ARMs are Adjustable Rate Mortgages, meaning that they are mortgages that do not have a fixed interest rate but one that varies. A major difficulty that borrowers often face when they are in ARMs is that because the interest rate is variable, meaning that it changes, the amount of the monthly payments a borrower is required to make, changes as well.

A Loan Mod is a good option for a borrower who: a) does not want to experience any negative tax consequences and b) does not want to have negative marks on his/her credit report. While there are other means of modifying the terms of a mortgage (i.e. forbearance, or short sale), a Loan Mod will enable a borrower to keep his/her home while making a decreased payment. A Loan Mod is an excellent way to avoid foreclosure.

Career Advice for Real Estate Agents

by CRESTICO | Mar 15, 2009 | CRESTICO

Being a Real Estate Agent is exhilarating. The rush you feel when a deal finally closes and you are waiting for that wire transfer is unparalleled by any other paycheck you will receive. But this rush does not come easy, nor does it come quick. Being a good agent requires a certain level of patience and stamina. Closing a deal is akin to running a marathon, you have to be in it for the long haul; because it’s rarely a sprint. Here is some advice for Real Estate Agents that will help you endure the marathon and finish with flying colors.

Invest in yourself. The investment you make into your career is one that you make into yourself. From time and effort to clothing and personal hygiene, the more you tend to your own needs, the more your clients will feel that you are capable of tending to their needs. As a Real Estate Agent, you will probably work evenings and weekends. While your schedule will remain flexible, remember to address and exceed your customer’s expectations with regard to your time and availability. It will often become necessary to show a home or take a listing appointment in the evening, or a weekend may be the only time you can write up an offer. Regardless of whether you plan to be a full-time or part-time agent, in order to be successful, you will need to make yourself available when your customers are available. If you are committed to success, and are willing compromise your time, to best serve your customers; there is no limit to the benefits you will enjoy as a result of this career choice.

The amount of time you invest in your career will directly impact what you reap. You’ve heard the saying "you reap what you sow" and real estate is no exception. A great way to maximize the benefits you receive as a result of the time you invest, is to educate yourself. Bu "educate" we mean that you should spend time reading, researching and talking to folks. Get a feel for the wants and needs of buyers and sellers; demonstrate your clear understanding of their concerns early on in conversations and you’re sure to grab their attention. Also, stay on top of industry news and market conditions. Doing this will make you seem like an "expert" and generate a sense of trust and reliance between you and your potential clients. Finally, think about new ways to reach potential customers. You can do this by attending events, networking or even joining social networking sites.

Much of the help and training you will receive will come from your employing broker. This is why it’s so important to choose the RIGHT one. Your real estate broker will help you in many ways, matching your efforts and investments by making some of his/her own and supporting your work and providing direction.

Investing in Your Real Estate Career

by CRESTICO | Mar 14, 2009 | CRESTICO

Investing in Your Real Estate Career

Have you ever thought about doing real estate as a full-time profession? Have you heard the term “buyer’s market” and want to know how YOU can capitalize on that? If you’re considering a real estate career, or have begun one and are still new to the industry, there are a few things that are important to keep in mind as you travel along this journey.

First, keep in mind that in real estate, as with most things, the rate of your success is directly related to the amount of “investment” you make. Now, you are probably thinking ” I have to SPEND money to make money?!” Yes and no. The investment that we are referring to here is mainly made up of time and effort, but you may need to invest some money into your career. Careers are like homes, they may seem perfect but they can always stand a little work. Here are some things you’ll need to consider.

Automatic success does not exist. While we believe that almost anyone can be successful at a career in real estate, no one does so automatically. Unless your daddy is a real estate mogul and buys a multitude of million dollar properties every month, you will need to work at it. A very smart real estate agent told me once, about her career, that she loves real estate because “you eat what you kill” and that is so true. You do have to put effort into your work, just like in any career, to become truly successful. This advice will help you to think about what you need to do to better serve your customers, and to grow your real estate career. For more advice and information, feel free to contact me directly.

Selling Your Home: Easy Things You Can Do To Help It Sell Quicker

by CRESTICO | Feb 28, 2009 | CRESTICO

Once you’ve decided that you want to sell your home, you want to make sure that it does not sit on the market for too long. Getting a good agent will definitely help you with that, but before you talk to an agent, here are a few pointers regarding things YOU can do that will help you sell your home quickly and efficiently.

The squeaky back door. Fix it! While you may find the squeaky door reminds you of holidays past and family gatherings, potential buyers see that as one more thing that “needs work.” Take a slow, long, deliberate look at every room in your house and address all small repairs that need to be done. We’re not saying reface the kitchen, we’re saying fix squeaky doors and screens, maybe touch up the paint where it’s been scratched, fix the “little” things that may send a signal to a buyer that maintenance may be an issue.

Your grandpa’s stuffed deer head. Pack it! Family heirlooms and knick knacks and things that cause clutter must be eliminated. You’re trying to sell your house to move, so start packing early. Get rid of things that fill up the living space in the house. You want to make your potential buyers feel like they are in a big, open, airy home; not YOUR home. Make it easy for buyer to walk around and see all the beautiful parts of your home. They don’t need to see your silver Tiffany spoon collection in its display case. Besides, always hide valuables before an open house!

Along with Grandpa’s deer should go the life-size family portrait from the reunion at Disneyworld! Everyone has a family, and we’re sure yours is beautiful; but your open house is NOT the place to show off your extended family photos. When Buyers are viewing your home, they are trying to picture their OWN family photos and artwork on your walls. Help them see their belongings in your home, by giving them more to work with. Limit your decorations to isolated and bold objects and let your buyer’s imagination do the rest.

Bust out the gloves and cleaning supplies. Now that you have taken down some of the art and cleared away the knick knacks, you’ve revealed a lot more of your home’s inner beauty. And some of it, has been hidden for a while, so it may be dusty! We suggest you get your home as close to immaculately clean as possible. The cleaner and more fresh-smelling your home, the more pleasant emotions you evoke in your potential buyers. No buyer wants to buy the “doggy breath” house. Make sure to pay extra attention to pet-worn areas. Your buyer may not have the same love of canines as you, and that’s ok! So make your home shine!

Don’t forget to look down! Flooring is one of the first things a potential buyer will notice about your home. Don’t spend lots of money installing new flooring, but make the best of what you’ve got. Pack up area rugs and mats, and make sure the floor is definitely clean.

All the world’s a stage, and your home is NO exception! Staging has become a key factor in home sales. Staging allows the best features of each room in your house to stand out. You can get help from a decorator or try to do it yourself. Maximize views and play up focal points in each room.

Roll out the red carpet. Your home is going to be listed on a listing service (if your agent is any good) but the first thing potential buyers will see is a picture of your home, from the outside. So, we suggest you roll out the red carpet, and pay some attention to your landscaping and the exterior appearance of your home. This is what is going to make a young couple on a weekend house hunt yell “STOP!” to their agent when they drive by; and it’s also what is going to get a person searching the internet and seeing the picture want to make an appointment for a showing.

With this advice, and the help of a good agent, you will surely be able to sell your home faster and easier than you ever thought possible.

Mitra Karimi-Paydar

Crestico Realty

(310) 362 – 0828 (TEL)

(877) 881-2929 (FAX)

mitra.karimi@crestico.com

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Loan Modifications: What Are They and How They Work

by CRESTICO | Feb 28, 2009 | CRESTICO

What is a Loan Modification?

Loan Modifications are something you have been hearing much about lately. Often, the people advertising these modifications do not explain the process clearly before they gather your information. Here is an easy to understand explanation of what a Loan Modification is.

Basically, a Loan Modification (called Loan Mod, for short) is a process that an attorney or other Real Estate professional will use to “modify” the terms and conditions of an existing loan. Currently, most of these modifications are being applied to mortgages, but could potentially be applied to any type of loan. This modification in terms generally only takes place AFTER the issuer of the loan (the lender) has granted approval to do so. Approvals are generally based on comprehensive review and consideration of all material factors.

A common reason for the request and subsequent approval of a modification arises from some sort of financial hardship that affects the borrower’s ability to repay the loan. In the current economy, where layoffs are becoming more prevalent and more and more borrowers are entering the many stages of foreclosure, many borrowers are facing very real and legitimate hardships that severely impact their ability to repay their loan obligations.

When lenders are considering granting modification approvals, they will often consider the borrower’s payment history and standing with respect to the subject loan. Most borrowers are diligent and make the appropriate payments in an appropriate manner. This will often help the lender to choose to allow a modification rather than institute a foreclosure. The foreclosure process is a timely and expensive method for recovering the property. Also, it should be considered that in the current market, lenders have many properties that are non-performing, which is to say that they have been foreclosed or abandoned, and modification may be the lender’s only option to keep a borrower paying.

Another factor lenders consider in granting approvals is, should such approval be granted, will the borrower be able to begin and continue making payments in a timely fashion under the new terms. Generally, to secure a modification, a borrower must be able to demonstrate some ability to overcome the current financial hardship and ensure that he/she will be able to pay back the loan in an acceptable manner.

Modifications may take shape in different forms. Once a lender has decided to grant approval, this approval may be either to lower the monthly payment amount, thereby making it easier for the borrower to stay current. In this case, the difference in the amount of the payments will be added to the “back end” of the loan, thereby extending the term of the loan. Also, a lender may decide to lower the interest rate on the loan, thereby reducing the payment with no addition to the total loan amount, lowering only the amount of interest paid.

Mitra Karimi-Paydar

Crestico Realty

(310) 362 – 0828 (TEL)

(877) 881-2929 (FAX)

mitra.karimi@crestico.com

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Realtor vs. Real Estate Agent: What’s the difference and How to Choose one?

by CRESTICO | Feb 28, 2009 | CRESTICO

Before someone can hold him or herself out as a “Real Estate Agent,” he/she must be licensed by the state in which he/she plans to work, either as an agent/salesperson or as a broker. Before a license is issued, minimum standards for education, examinations and experience, which are determined on a state by state basis, must be met. After receiving a real estate license, most agents go on to join their local board or association of REALTORS® and the NATIONAL ASSOCIATION OF REALTORS®, the world’s largest professional trade association. They can then call themselves REALTORS®. An agent may still practice Real Estate without being a REALTOR®, however this means that the agent has not completed the steps in becoming a REALTOR®.

As a consumer, you are not bound to choosing only REALTORS® or Agents, you may work with either. There are many excellent agents that are not REALTORS®, however read on to discover some strategies in choosing the best REALTOR® or Agent for you. Real Estate Agents, whether REALTORS® or not, are bound by certain legal obligations. Traditionally, Agents must consider and weigh your interests ahead of anyone else’s; maintain the confidentiality of your information; obey your lawful instructions; be responsible for reporting anything that may be useful or of consequence to you; and account for any money involved in your transaction.

A REALTOR® is held to an even higher standard of conduct under the NAR’s Code of Ethics. In recent years, state laws have been passed setting up various duties for different types of agents. As you start working with a REALTOR®, ask for a clear explanation of your state’s current regulations, so that you will know where you stand on these important matters. The term "REALTOR®" is a registered collective membership mark that identifies a real estate professional who is a member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics (which in many cases goes beyond state law). In most areas, it is the REALTOR® who shares information on the homes he or she is marketing, through a Multiple Listing Service (MLS). Working with a REALTOR® who belongs to an MLS will give you access to the greatest number of homes.

Mitra Karimi-Paydar

Crestico Realty

(310) 362 – 0828 (TEL)

(877) 881-2929 (FAX)

mitra.karimi@crestico.com

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