Category Archives: Foreclosures & Short Sales

Selling a Condo or Home Within a HOA? Make This Info and Documentation Available Now

Selling a Condo or Home Within a HOA?  
Make This Info and Documentation Available Now

http://www.genemundt.com/Default.aspx     If you’re a prospective Home Buyer and considering the purchase of a Condominium … or a home located in and governed by a Homeowner’s Association (HOA), there is important information you need to know regarding prior to signing a contract.

(For further info, read 2 of my previous posts on Condo/HOA buying: “To Condo or Not to Condo”. That Should Be the Question …”  and … How to Determine if You’re Viewing a Condominium or Townhome”.)

Some of the details a new Home Buyer should know regarding Homeowner’s Associations are:

  • Rules governing the Homeowner’s Association (HOA)
  • Restrictions attached to the ownership and use of the property
  • Assessments, Fees, Dues *

* Are any of these Assessments past due?  And if so, what percentage?

  • Budget of the HOA
  • “Health” of the HOA
  • Status of Reserve Funds
  • Percentage of Owners versus Renters

If you’re on the flip side of the transaction and the SELLER of a property impacted by a Homeowner’s Association, what information and documentation should you disclose and make available to prospective Buyers?  https://1609956119.secure-loancenter.com/FreeConsult.aspx

As most Buyers will also be utilizing a Mortgage to purchase the property, the following info and documentation will most likely be required from a Seller, the HOA, or the Signee (property holder) involved in the transaction.

Note:  Be aware that the Mortgage Lender representing the Home Buyer will need or request some of the following info/documentation also.

    • A copy of the HOA Budget/Accounting
    • Declaration and By-Laws
  • HOA Questionnaire and/or Survey  

In Illinois and the Chicagoland area, a HOA Questionnaire/Survey will be requested by the Mortgage Lender or Buyer’s Attorney.  There is typically a charge for the Homeowner’s Association to fill-out and prepare this document.  The person responsible for this payment is often designated as part of the Real Estate Contract.

Sellers that make these documents and information available to potential Home Buyers (and their representatives) and take measures to act proactively provide a great service.  They help facilitate their sale, the transaction, and the Buyer’s mortgage application more quickly and smoothly.

Should you be thinking of selling a home or condominium located within a Homeowner’s Association, start gathering this information and documentation sooner than later in the sale process.  That way there will be opportunity for fewer delays caused by a Buyer’s questions or requests.

As an added piece of information: 

Please be aware that in the cases where the Seller is a Bank, or an Entity such as Fannie Mae, Freddie Mac, FHA, or VA, often times there will be little or NO information made available to the Buyers from the Sellers.  In other words, the Buyer MUST track these down themselves through whatever means.

Bottom line, there may be some “inherent” risks and extra “work” involved when buying a property that has been Foreclosed upon.  The “price” may be discounted, but so may the “offerings from the Seller”.  This can be especially true when the property is a condominium.  That’s why working with a Mortgage Lender, Realtor, and Attorney experienced in these types of transactions is so very important.

If hoping to buy a Chicagoland Condo, or home located within a Homeowner’s Association … contact me today.  I’ll put my 37 years of Mortgage experience and knowledge hard to work on your behalf.

I can be easily found at any of the following:

Direct:  815.524.2280
Cell/Text:  708.921.6331
eFax:  815.524.2281

 

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Gene Mundt, Mortgage Lender, a Lender with 36 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking:  Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including:  The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL. 

 

Staying in Shape and Eating Your Wheaties. Getting Ready for Current Day Real Estate Transactions.

  

    Getting a deal closed in today’s real estate world has become a long distance marathon …

    What used to take about 3 weeks to accomplish … can now take up to 2, 3, 4 months, or even longer.  And no .. I’m not dissing banks, Wall Street, underwriting,  underwriters, or anyone else specifically here.  

   There are alot of fingers in this messed-up pie!  

   Transactions just take longer to close.  A pretty obvious FACT …

    Real estate has always been known by the often-heard phrase, “Location .. Location .. Location”! 

    Currently, I believe it should be known by “Documentation .. Documentation .. Documentation”!  Or maybe something more unprintable.

    I’ll be the first one you hear agreeing with the sentiment that approval for loans in the not too distance past had become way too lax.  The proof of that is hard to debate.  If you’ve read any of my posts and know anything of my past, you’ll know I started with a Savings and Loan over 30 years ago.  Hard to believe given how young and handsome I look now, huh?

   But seriously … getting approved for a loan was just a different experience then … the path you took to approval was vastly different.  This can’t be over-emphasized!  The approval process was carried out on a much more personal, human level … most likely by a group made up of Board of Directors of your bank/savings or loan or your bank’s officers. 

    No doubt this method had it’s kinks too.  I won’t debate them.  But, there was none of the current inhuman, unfeeling automation.  The decision was based on fairly cut and dried, clearly understood terms … not much grey area … and over pretty quickly!  There was some decorum and common sense to the process.  None of the endless back and forth … the “Let’s Make a Deal”-ness that you find currently.  If you got bad news regarding your approval, you heard it quickly and could move on. 

   Too many of our clients just get tormented to hell these days.  And it needs to stop, or at minimum return to a number that is un-obscene.  I closed a loan last night (in the client’s living room, btw … one of the advantages of modern loans) … and that poor couple’s lives had been put on hold for almost 4 months.  Thankfully for me, this couple was intelligent, understood every step of their processing, and did not hold me personally accountable for the delays.  Sometimes, you’re just not that lucky and clients DO get mad.  Good Lord … that’s understandable!

   And please, my fellow mortgage professionals … spare me the “that never happens to me” incredulous stuff.  As the saying goes … “#*%!@ Happens” … and last night’s transaction was a real doozey of an example of all of “it” that can hit the proverbial fan. 

   It DOES happen once in awhile .. and to the very best of us too.  Circumstances out of MY control just dragged this poor couple’s negotiations and legal steps and communications and appraisal on … way beyond what this couple should have had to endure.  (And I’ll add to that … mine too.)  At so many levels, common sense just never entered into the equation.  So sad … and infuriating …

    It’s happening WAY too often.  I am beginning to see a light at the extreme end of the tunnel … but it’s still going to be awhile before real sanity returns to the process.

    Like I said above … getting a deal closed today has become a long distance marathon.  You better be in darn good shape, the best shape you can be when you enter into a transaction …

    And that’s whether you’re a buyer, seller, agent, the property and credit status, mortgage originator, or any other real estate professional …       

Do the homework!   Clean-up that credit beforehand!   Be … and stay informed!   Be prepared!   Communicate and Document!   Get ready to work HARD!   Don’t drop the ball!   Don’t lose your cool!

And the #1 Tip  …

STAY  IN  SHAPE  AND  EAT  YOUR  WHEATIES!!!

 

        *  If you are in need of an experienced, knowledgeable mortgage banker to answer your questions and guide you through your homebuying or refinancing experience … or just need answers for your current loan and credit questions … please contact me through any of these means:  CELL/TEXT:  708.921.6331   

EMAIL: gene@chicagobancorp.com    

WEBSITE:  www.genemundt.com

 You can also refer to my post(s):  Regarding the Documentation you need to prepare for Buying a Home and Applying for a Mortgage:   http://www.genemundt.com/blog/2010/09/19/Be-Prepared-for-Mortgage-Application-Start-Gathering-These-Documents-NOW.aspx 

 This informative blog post can also be HEARD on iTunes now:  For Info, please refer to:  http://www.genemundt.com/blog/2010/10/31/-Listen-to-my-Mortgage-Blogs-Community-Information-Now-via-iTunes-.aspx … or go to iTunes and Subscribe to:  Genemundtmtgbanker Blogs.  Information easily obtained at a touch of a button! 

I look forward to hearing from you soon!

 www.genemundt.com

 gene@chicagobancorp.com

Let the Sellers BEWARE … and be AWARE. Playing Offense & Defense While Selling a Home

Let the Sellers BEWARE … and be AWARE!                                  Playing Offense & Defense While Selling a Home …

    Huh? Beware?  Thought that was the Buyer!    

    Not these days!  Agents, buyers, and sellers must know how to play DEFENSE and OFFENSE throughout a property transaction.  This “one-of-a-kind market” delivers much more for each of them to consider than ever before. 
 
    Prior to the present challenging market, sellers asked their agents, “What will I net in proceeds at the closing of my sale”? Now, more often the question is, “If I sell my home for less than I presently owe on my mortgage, what happens?  How does that work for me?  What does it do to my credit and my financial future?”
 
    During the last week, further complications have occurred within the mortgage industry.  These complications surround the ability or inability to close on foreclosed properties.  This muddies the waters for sellers, their agents, and potential buyers even further.  You can’t overlook how it effects we mortgage originators as well.  No one at present, is happy.
 
    Many agents are now finding that they have performed their services, listed a property, maintained a vacant home, its’ land, secured a buyer, assisted with securing the financing, ordered the inspections, and much more … only to be told that as of now, the loan cannot close.  A seller’s attorney may possibly say that the lender has “halted all deals on foreclosures until further directions or notice”. 
 
    No one knows how this will play-out, as of right now.  I personally am trying to stay calm … and positiveas possible at this point, with the hopes that this latest twist in the story will be given the utmost and urgent attention needed … and what we ludicrously have called “normalcy” within our industry, will return fairly quickly.  Time is definitely of the essence, but it’s hard to be definitive regarding a time element with this. Our clients deserve the truth and our understanding of the situation, as it presents itself in the future. 
    
    For agents working with sellers experiencing the now common problem of being  “under water“, this latest mortgage revelation can post quite a problem as to proceeding with a transaction of this kind.  These sales are definitely not for the timid.  An agent better be a “Vince Lombardi”, a coach of sorts for their sellers.  A coach that retains tight rein, handles their “team” with firmness,  presents great strategy, and displays a willingness to tell their team what they might not want to hear … but must
 
    In every sense of the word, this agent must prepare the sellers (“team”) to play stellar offense and defense in order to survive and win in their game of home sales.  
 
    But what if the seller (team) disagrees with the philosophy laid out by the agent (coach)? 
 
    Just as a coach in major league football,the agent mustbe in charge as the expert.  Just as a coach during any game, the agent does the seller no favors long term if they allow the homeowner to dictate an unreasonable sales price for their home. No one wins if that ends up happening, and in fact it does everyone involved a grave disservice.
        
         If need be, a coach must be willing to forego a full touchdown and glory and go for the short field goal … if that decision positively wins the game.  A short sale is much the same thing.  From a Credit Bureau and lender’s viewpoint, it is definitely a more positive outcome for a seller than foreclosure.
 
     In the future, a seller that sold “short”, and received the bank’s approval to do so, fairs much better than a seller that walked away from their mortgage obligations.  They can return as buyers much more quickly. 
 
     Ultimately, everyone on the team must have the same “goal” … coach and player … agent and seller.  Success is won much more easily if everyone is of one mindset and works all in one direction and together, playing offense and defense within their transaction.  Educated, well-informed, “well-coached” sellers accomplish this best. 
 
     If you are a seller and are working with an agent fitting this definition, you are blessed. Listen carefully.  Discuss thoroughly.  Move ahead with confidence in their wisdom and expertise.
 
     “Let the Sellers Beware … and Be Aware”!
 
 
 
    *  For Buyers and Sellers in the Naperville/DuPage County, Joliet, Plainfield, Shorewood, Will County, Chicagoland areas seeking an experienced, professional real estate agent or broker, or other real estate professional … please contact me for referrals.  I will be happy to supply you with the information you need.
 
         For those seeking mortgage, credit, or financial information and guidance, please contact me also.  Information regarding my services, my background, and more can be found at my website: http://www.genemundt.com/.
 
         You can follow me on Twitter, my Facebook fan page, and LinkedIn.  Your comments and contacts are very much appreciated.