Are you looking to buy a new home? Are you thinking that now’s a great time to find bargains? Before you make an offer, it pays to know a little about the seller’s situation.

If a home is being sold for below what the current seller owes on the property—and the seller does not have other funds to make up the difference at closing—the sale is considered a short sale. Many more home owners are finding themselves in this situation due to a number of factors, including job losses, aggressive borrowing against their home in the days of easy credit, and declining home values in a slower real estate market.

A short sale is different from a foreclosure, which is when the seller’s lender has taken title of the home and is selling it directly. Homeowners often try to accomplish a short sale in order to avoid foreclosure. But a short sale holds many potential pitfalls for buyers. Know the risks before you pursue a short-sale purchase.

You’re a good candidate for a short-sale purchase if:

· You’re very patient. Even after you come to agreement with the seller to buy a short-sale property, the seller’s lender (or lenders, if there is more than one mortgage) has to approve the sale before you can close. When there is only one mortgage, short-sale experts say lender approval typically takes about two months. If there is more than one mortgage with different lenders, it can take four months or longer for the lenders to approve the sale. · Your financing is in order. Lenders like cash offers. But even if you can’t pay all cash for a short-sale property, it’s important to show you are well qualified and your financing is set. If you’re preapproved, have a large down payment, and can close at any time, your offer will be viewed more favorably than that of a buyer whose financing is less secure.

· You don’t have any contingencies. If you have a home to sell before you can close on the purchase of the short-sale property—or you need to be in your new home by a certain time—a short sale may not be for you. Lenders like no-contingency offers and flexible closing terms. Some of the other risks faced by buyers of short-sale properties include:· Potential for rejection. Lenders want to minimize their losses as much as possible. If you make an offer tremendously lower than the fair market value of the home, chances are that your offer will be rejected and you’ll have wasted months. Or the lender could make a counteroffer, which will lengthen the process.

· Bad terms. Even when a lender approves a short sale, it could require that the sellers sign a promissory note to repay the deficient amount of the loan, which may not be acceptable to some financially desperate sellers. In that case, the sellers may refuse to go through with the short sale. Lenders also can change any of the terms of the contract that you’ve already negotiated, which may not be agreeable to you. · No repairs or repair credits. You will most likely be asked to take the property “as is.” Lenders are already taking a loss on the property and may not agree to requests for repair credits. The risks of a short sale are considerable. But if you have the time, patience, and iron will to see it through, a short sale can be a win-win for you and the sellers.If you need help, and would like to discuss your foreclosure or short sale options, please contact the Tello Team at 954-237-0608 or shortsale@telloteam.com . We’re here for you, and will help you decide the right option for your needs!

Come on out on Saturday, March 13, 2010 to the Fort Lauderdale St. Patrick’s Day Parade and Festival. So, what can you expect if you go? Well…..

“Dia dhuit,” or Hello! to all Irish and yes, that includes you! According to the U.S. Census, at least 34 million Americans have Irish ancestry. And even if you aren’t of Irish descent, all can enjoy the culture, history, food and fun of a St. Patrick’s Day celebration.

For the first time in 17 years, the City of Fort Lauderdale and the Downtown Development Authority are proudly sponsoring the Fort Lauderdale St. Patrick’s Day Parade and Festival. This family friendly celebration of all things Irish will take place on Saturday, March 13, 2010 and will be free and open to the public.

Get on your green and plan now to enjoy the fun as Fort Lauderdale transforms into a sea of color and music. The festival, which runs from 11:30am to 9 pm at Huizenga Plaza and along the Riverwalk, will include cultural games and events including sheep herding, currach racing and hurling, and continuous live music, entertainment, and dance performances. The children’s area will feature games, storytelling, amusements, delicious treats, contests and other activities. Additional festival highlights include historical education and ancestry areas, trivia, cooking demonstrations, authentic Irish cuisine and more!

And, if you feel up to participating, they are looking for volunteers to help in any way - from walking in the parade, building a float, be a performance group. Similarly, if you or your company would like to donate to help cover some of the costs, they are looking for that as well - more information on all of that, and more, can be found here!So, feel the “luck of the Irish”, come on out on March 13, and enjoy a tradition that should live in your hearts - forever!

If you are in danger of facing foreclosure because you have defaulted on your monthly mortgage payments, you must act quickly before it’s too late to negotiate a loan modification, and your home gets sold in a foreclosure auction. You may feel hopeless now, but there is still hope until that auction date arrives. Here are a few tips to help save your home from foreclosure.

1. During foreclosure proceedings, do not move out of your house so that you can still claim benefits such as, one-time FHA mortgage insurance, etc.

2. Mark your mortgage due date in red and prioritize you’re most important financial obligations accordingly.

3. Make a list of all your monthly payments. Your monthly mortgage payment must be on top of the list. Credit card bills, personal loans and other unsecured debts will have to suffer and go down the lists for the meantime while you catch up on your mortgage payments. Besides damaging your credit score, these debts will not bring greater consequences compared to losing your home to foreclosure. The effects foreclosure has on your credit score are MUCH more severe anyway.

4. Do not ignore nor wait for your banks foreclosure notice. Inform them beforehand that you are in a financial crisis because of a hardship. This act of good-faith could earn a bit of mercy from your lender. Provide necessary supporting loan modification documents for their assessment. In all likelihood, your lender might either extend the grace period or consider a forbearance agreement just as long as you make the effort to catch up with your mortgage payments.

5. Seek the help of credit counseling and debt management program. You can repair you own credit by downloading our free credit repair kit. Take advantage of lenders and local housing agencies or extension services offering these programs especially if it’s for free. The best venue to seek free financial and foreclosure help from is the U.S. Department of Housing and Urban Development (HUD), as there are lists of credit counseling and debt management agencies approved to work with HUD loans and possibly with your lender. In cases involving promissory notes or predatory lending, contact your bank directly.

6. Consider the options to get affordable mortgage payments. It could be by restructuring or refinancing your mortgage loan. With the new Obama loan modification programs currently available, deciding what to choose would be easy depending on your financial capacity. Keep in mind that mortgage refinancing costs can be expensive because of the processing fees, such as closing costs and points.

7. If you’re successful in negotiating a lower monthly mortgage payment, get the resolution in writing. In fact, keep all loan modification documents that legally represent any agreement or arrangement with your lender

8. If not, sell unnecessary assets. You can raise money by doing this and pay your mortgage until you recover from your financial hardship. It is also a good time to lower your monthly expenses. But doing both of these will not be enough in the long run if your financial situation is remains the same.

9. You can sell your home to a third party as an alternative. This could be referred to as short sale. Sometimes creditors accept this as full settlement of the debt. Typically though, the selling value of the house cannot cover the outstanding loan balance, so some banks would rob you through foreclosure deficiency if you have too many assets. Get the help of housing counselor, real estate agent or a loan modification lawyer. You may also be able to re-purchase your property after the foreclosure auction.

10. Negotiate a forbearance agreement. As much as you want to keep your house, is as much as the lenders want to get paid. In the case of forbearance, your lender will temporarily stop foreclosure proceedings until another payment option can be executed.

11. Declare bankruptcy. This could put your credit record in a bad spot. Remember that you may or may not be able to keep your home with this option. If you seriously think that this is your only way out, call your attorney to discuss what to do.

12. Turn-over your home to your lender. This is called “deed in lieu of foreclosure.” This option will not affect your credit score but you will be rendered homeless. As you are making things easier for the lender, this act may just be recognized thru eliminating your loan balance even if the house sells less. Again, get the help of a mortgage attorney.

Be realistic in choosing your options because once an agreement is reached you must conform, otherwise you’ll surely face another foreclosure.

The majority of mortgages are secured or funded by government programs such as HUD, FHA, or VA. If your mortgage belongs to any of these agencies, inquire about what options they offer to save your home. But you must approach your lender first to personally negotiate openly and honestly. In doing so you’ll save paying credit counseling agencies or lawyers.

If you need help, and would like to discuss your foreclosure or short sale options, please contact the Tello Team at 954-237-0608 or shortsale@telloteam.com . We’re here for you, and will help you decide the right option for your needs!

As a homeowner, refinancing your mortgage means paying off your current mortgage and getting a completely new mortgage loan with better terms.

What does “Better Terms” mean?

· Lower monthly mortgage payments

· Cash out to cover expenses, improve your home, pay off your debt, etc.

· A lower interest rate to save money over the course of the loan

· A fixed rate loan to eliminate uncertainty with adjustable rate mortgages (ARMs)

· Many other benefits depending on your personal situation and goalsMortgage refinancing can give you the flexibility to change the terms of your current loan with a new loan to meet your needs.

What is a Short Sale?

A short sale happens when a lender agrees to take less than the full loan payoff for an owner’s property. In most cases, the owner is in default and is not making their payments for whatever reason.

Short sales, in most circumstances, are the first step to avoid foreclosure. Although the lender(s) will recover less than the total loan amount in a short sale, they may prefer this in lieu of foreclosure. The costs of foreclosing on a property may be more than the bank’s loss by taking a short sale. Also, the property may not sell at auction and then the bank would be forced to take it back as an REO (Real Estate Owned) property, which then they would have to maintain, list and sell themselves.

What is a Foreclosure?

Foreclosure is the process whereby the lender takes possession of the property.

When a home owner fails to make the payments on his/her mortgage, the lender can begin foreclosure proceedings. This is a very specific legal process with set timelines and outcomes. In a Short Sale situation, the home owner’s name is still on title of the property and they are the official owners who are trying to sell the property. In a foreclosure, the lender takes possession of the house and as a result, the homeowner is no longer a party in the sale.

What is an REO (Real Estate Owned property)?

If no one purchases the property at the Trustee Sale, then the home becomes an REO property, owned by the bank. The main reason homes don’t sell in a Trustee Sale is because it doesn’t work out to be a good investment for a potential real estate investor.

A home that has been “foreclosed” and has become a bank owned property can then be listed by a Realtor who is hired by the bank to market and sell the property. To sell the house as quickly as possible the lender will remove any liens on title, and clear any other issues that may slow down the sale of the property. Generally, lenders are very motivated to sell these properties, as they are in the business of lending money, not owning real estate. REO’s tie up their capital reserves and hamper their ability to lend money. Also, the management of these properties can become very costly. This is the best opportunity to find a good deal.

If you need help, and would like to discuss your foreclosure or short sale options, please contact the Tello Team at 954-237-0608 or shortsale@telloteam.com . We’re here for you, and will help you decide the right option for your needs!

February is the month of love, as many of us know. There are so many things happening in Broward County for couples, families, and individuals alike! Below is just a short list of some of the many happenings throughout Broward County. And for most of them, the whole family can join in on the fun!

This year Mardi Gras Fiesta Tropicale’s Grand Marshal is “Punxsutawney Phil” the World Famous Groundhog!

The Mardi Gras Parade will start rolling thru downtown Hollywood beginning at approximately 6:00 P.M. Saturday, Feb. 2nd.
Like years past, we won’t disappoint the crowd. You will see dozens of elaborate floats, energized marching bands and dancers, and scores of spirited costumed foot entries.

Location: Greater Fort Lauderdale/Broward County Convention Center.Did you get engaged recently?　 If you’re planning a wedding, this is the place to go to check out everything for your wedding and honeymoon all in one convenient place!

Duck Fest Derby & KID Olympics (sponsored by Kids In Distress)

The IRS has finally published the rules for the repeat purchase credit along with the key details for taxpayers that had been missing since President Barack Obama signed the legislation creating the program on Nov. 6. Ready to see how this can help you and your family?On Jan. 15, the IRS posted its revised Form 5405 on its website (www.irs.gov), six weeks after warning taxpayers not to file claims for the $6,500 credit without using the revised form and new instructions. How can you qualify?

You can qualify for the Extended Home Buyer Tax Credit if you are a first time home buyer, or you are a current home owner . The tax credit can be applied to single family homes, townhomes, condos and co-ops.

· First-time home buyers must have purchased a home between Nov. 7, 2009 and April 30, 2010 to qualify

· Current home owners must have purchased a home between November 7, 2009 and April 30, 2010 – and used the home being sold or vacated as a principal residence for 5 consecutive years within the last eight years.

Ready to file? On 2009 and 2010 tax returns, buyers should attach: A copy of the signed HUD-1 settlement sheet, including contract sale price and date of closing. This is to document that the timing of the transaction meets the program’s requirements. Evidence of long-term ownership and occupancy of the previous house to meet the five consecutive years test. This can be property tax records, homeowners’ insurance records, or IRS Form 1098 interest statements for the five-year period.

Facing a foreclosure is a scary thing, but there are things you should do – and shouldn’t do – to avoid making the situation worse.

· DO answer the phone and read your mail.
Avoiding your lender won’t make the problem go away. In fact, it will only make the problem worse. Your lender may be able to help you, so be sure to answer the phone and read any mail they may have sent you.

· DO realistically assess your situation.
Are your financial problems temporary? If you are temporarily out of work and will be fine once you find a new job, call your lender. Lenders may be able to offer a forbearance or repayment plan.

· DO consider your options.
If you are not in a position to keep your home, consider selling it before you face a foreclosure. If you have already missed a mortgage payment, call your lender. There may be purchase options, like a short payoff or assumption (see sidebar) that help avoid foreclosure.

· DO be aware of certain financial responsibilities.
Even if your lender sells your property, you may still be responsible for the difference in the sale price and what you owe. It is also important to realize that you may be responsible for certain taxes when a lender forecloses on your property. However, the IRS does provide tax relief in certain situations.

· DO protect your wealth.
Recognize that you may have significant equity in your property that must be preserved. · DON’T move out of your home.
In order to qualify for assistance, homeowners are often required to be living in their home. Be sure to talk to your lender before you think about moving.

· DON’T ignore the problem. It may be possible to keep your home, but if you wait to take action, fewer options will be available. You have certain rights and can take certain actions to help you keep your home; however, you only have a limited amount of time to assert those rights or take those actions.Talk to a lawyer or legal aid organization, since your rights vary from state to state. Most states and large cities have legal aid organizations; to find one near you, go to the Legal Services Corporation, a government-sponsored organization that provides high-quality civil legal assistance to low-income Americans.· DON’T convince yourself you can afford a home if you can’t.
Most lenders will only lend what a borrower can afford, but some less scrupulous lenders will allow borrowers to get in over their heads. In some cases, a home that was affordable becomes unaffordable due to changes in your life circumstances. If your mortgage is truly beyond your means, consider selling your home and purchasing a less expensive home or renting for a period of time before the only option left is foreclosure. Call your mortgage company; they may be able to help you avoid foreclosure by agreeing to an assumption or a short payoff.  

· DON’T fall victim to a scheme.
Some people want to profit by your misfortune by offering to contact and conduct all work-outs and negotiations with your lender on your behalf – for a fee. View a helpful video Freddie Mac posted YouTube titled “Foreclosure Scams 101.

If you need help, and would like to discuss your foreclosure or short sale options, please contact the Tello Team at 954-237-0608 or shortsale@telloteam.com . We’re here for you, and will help you decide the right option for your needs!

A short sale can be an excellent solution for homeowners who need to sell, and who owe more on their homes than they are worth. In the past, it was rare for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in corporate policy and the Obama administration have also improved the chances of getting a short sale approved.

But to be technical, here’s a more official definition:

· A homeowner is ’short’ when the amount owed on his/her property is higher than current market value. · A short sale occurs when a negotiation is entered into with the homeowner’s mortgage company (or companies) to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is then ’sold short’ of the total value of the mortgage.For homeowners to qualify for a short sale, they must fall into all of the following circumstances:

· Financial Hardship – There is a situation causing you to have trouble affording your mortgage.

· Monthly Income Shortfall – In other words: “You have more month than money.” A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.

· Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.

This seems simple enough, but it is a complicated process that takes the expertise of experienced professionals. That’s where feeling comfortable talking to your real estate agent comes in to play.For buyers, short sales and foreclosures have become synonymous with “good deals.”More specifically, international buyers are targeting these properties. Listing with an experienced agent who is educated in the short sale process will provide you with a great chance of quickly seeing a contract on your property.If you need help, and would like to discuss your foreclosure or short sale options, please contact the Tello Team at 954-237-0608 or shortsale@telloteam.com. We’re here for you, and will help you decide the right option for your needs!

Census 2010 information gathering is under way

Here’s how to be cautious when giving out information

Starting in May of 2009, census workers began gathering census data for the 2010 census. They are verifying the addresses of every citizen of the U.S., and how many people live in that household. That information is gathered by mail, direct contact, and telephone. For those contacted directly in person, how do you know that the person at your door is in fact working for the government and gathering census data? How do you know that your information is secure, and that you and your family will not become a victim of identity theft? Here are some pointers so you can tell that you are in fact giving your information to a census worker.