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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by CRESTICO | Feb 18, 2009 | CRESTICO
In making your decision to work with an agent, there are certain questions you should ask when evaluating a potential agent.
First, you should find out (by asking him/her) whether he/she is a REALTOR®. 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).
Next, get to know a little about your potential agent's license. In California, you can go to www.dre.ca.gov and do a "license check." This means you can see whether this person (a) has a license, (b) has a license in Good Standing and (c) who is the Broker that your agent is affiliated with. All of this information can be quite useful. Odds are that you do NOT want to work with someone who has a questionable past or too many open complaints or inquiries. In this day and age of rampant fraud and dishonesty, and with the mortgage crisis we are currently in, it would certainly be in your BEST interest to make sure your agent's license is CLEAN!
Next, find out about your agent's access to the Multiple Listing Service (MLS). If he/she is a Realtor® most likely, he/she has access to the MLS in your desired area. If not, you may want to ask him/her to get than access before you agree to use him/her as your agent. A good agent will go to any length to secure your satisfaction. The MLS can be quite useful in helping you to locate your dream home.
Now that you know about his/her license and all that he/she has access to, it is time to find out a little about your actual agent. Remember, this is a person you are going to be working quite closely with for an extended period of time. Many escrows are generally 30 days, and some, especially those for REOs are even longer. Remember, you do not enter escrow until after you have found a home, and sometimes it can take weeks to find the right home, so you want to make sure you are working with an agent that you are pleased with. In order to get to know your agent better, you want to ask him/her if real estate is his/her full time career. An agent who is not fully committed to his/her career, probably cannot be fully committed to your house hunt, either.
Additionally, you will want to find out if this person whom you may be considering as a potential agent, is in fact the seller's agent, as well. What does that mean? Let's say you go to an open house and there is a nice agent there who is extremely helpful and friendly. Now let's say this friendly agent asks you if you have an agent and you say "no." This person will want to be your agent. However, keep in mind, this agent is the Seller's agent, which means that he/she is the Agent who is trying to sell the home you are viewing. You will want to be careful about what kinds of confidential information you give this agent, because he/she has a fiduciary duty to his/her client (the homeowner.) So, it may be in your best interest, to find your own agent so that you can have someone purely interested in YOUR best interest, ONLY.
Finally, before making a final decision regarding an agent, you should ask the prospective agent HOW he/she plans to help you find your dream home. Ask him/her about his plans, you are entitled to know how your agent wants to go about making sure your future home has all of the things you do want and none of the things you do not want.
by CRESTICO | Feb 11, 2009 | CRESTICO
Real Estate is an industry thought by many to be highly lucrative and high-paying. But have you ever wondered HOW exactly your agent will be paid? You are often approached by agents trying to convince you to list your home with them, or allow them to show you some nice homes to buy. Read more to find out how your agent will be compensated and from where. As a prospective homebuyer, it would be in your best interest to understand this compensation process.
The standard compensation structure for Real Estate Agents is that he/she will be paid commission, based on the selling price of the property you are interested in. While commission rates are not standardized, the process in which they are disbursed is consistent. When a seller signs a listing agreement, that contract is with a brokerage firm. All fees must pass through that brokerage firm. Typically, the seller’s and the buyer’s agent will be paid by the listing broker after the transaction closes. When a property is listed for sale, the seller’s contract spells out the commission rate that will be awarded to a buyer’s agent.
Often, many people often try to avoid using real estate professionals so that they may avoid paying commission fees. However, I would warn against this because of some of the potential pitfalls. Unrepresented sellers (for-sale-by-owner properties) often do not have enough information about how to price the home, and sometimes try to raise the price instead of paying a real estate commission. Also, as an unrepresented buyer, it will be much more challenging and difficult for you to determine if the asking price is reasonable and whether or not you are overpaying. Real estate agents have developed insights that go well beyond simply evaluating data through the Multiple Listing Service (MLS). And if you are overpaying, it will create further complications in securing financing, because of potential lender requirements.
Real estate professionals play a vital role in helping you achieve the dream of owning your own home. Beginning with helping you tour and select properties and then guiding you during the negotiation phase and finally seeing it through inspections, financing and closing, the services your Agent will provide you are priceless. This is especially true in today’s market, where alternative buying opportunities, including short sales and REOs make it even more difficult to navigate the choppy waters of the home buying market alone.
by CRESTICO | Jan 31, 2009 | CRESTICO
Real Estate Agents: Choosing a Broker That’s Right For You!
In an industry like real estate, where being an agent is an unsalaried position and the business experiences so much turnover, which broker you choose to hang your license with becomes an important consideration for your career.
A vital part of your success will depend on your broker and at Crestico we believe, as your broker, we have a responsibility to support your growth and profitability, so that you will do well. Choosing the right broker involves more than supplying leads, or offering the best commission splits and lowest desk fees!
We encourage you to speak to our agents and see that our environment enables you to make real money! Realizing you made the best decision gives you peace of mind. We at Crestico Realty understand that it’s comforting to know you’ll have support when you need it, in addition to technology, and a market presence with a broker that the public wants to do business with!
For new agents, the industry poses many challenges. Almost 85 percent of new real estate agents “drop out” after less than one year in the business, and 15 percent of the remaining don’t renew their licenses. We want to make sure you’re not one of these statistics. Successful real estate agents are self-starters and go-getters. The beginning of a real estate career often involves lots of rejection. But it’s only temporary. As a real estate agent, you are more than a person who shows properties, you become a trusted advisor and your clients look to you for your knowledge and expertise. Buying a home is the most expensive (for most people) transaction of their lives.
by CRESTICO | Jan 31, 2009 | CRESTICO
Real Estate Career?
TREAT YOURSELF to the best new year’s resolution ever by moving your practice to a young energetic brokerage where you are still your own boss but get all the benefits of being associated with a nationally recognized brand! Crestico Realty is looking for licensed Real Estate Agents like you to come down and interview!
Crestico Realty is a boutique Real Estate firm that focuses on handling all forms of real estate transactions. We offer *NO DESK FEES* and have great relationships with our business partners who work with us on a day to day business. If you are an independent visionary and get excited by the limitless possibilities of today’s market, then give us a call. At Crestico, we treat our agents like family, offering unprecedented support, generous commissions, the best training and mentorship for new agents, additional incentives & bonuses, and further opportunities to grow and expand your career.
We are looking for agents who are more than just agents – we want real estate specialists, who love their work and see income potential in every conversation they have!
Please send your resume, along with cover letter to careers@crestico.com.
For more information please visit www.crestico.com or call (818) 784-2929
