Most mortgage financing plans provide only permanent financing. That is, the lender will not usually close the loan and release the mortgage proceeds unless the condition and value of the property provide adequate loan security. When rehabilitation is involved, this means that a lender typically requires the improvements to be finished before a long-term mortgage is made.
When a homebuyer wants to purchase a house in need of repair or modernization, the homebuyer usually has to obtain financing first to purchase the dwelling; additional financing to do the rehabilitation construction; and a permanent mortgage when the work is completed to pay off the interim loans with a permanent mortgage. Often the interim financing (the acquisition and construction loans) involves relatively high interest rates and short amortization periods. The Section 203(k) program was designed to address this situation. The borrower can get just one mortgage loan, at a long-term fixed (or adjustable) rate, to finance both the acquisition and the rehabilitation of the property. To provide funds for the rehabilitation, the mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work. To minimize the risk to the mortgage lender, the mortgage loan (the maximum allowable amount) is eligible for endorsement by HUD as soon as the mortgage proceeds are disbursed and a rehabilitation escrow account is established. At this point the lender has a fully-insured mortgage loan.
To get the details of this FHA Program we have posted the information HERE
Bob Corcoran is on www.BrokerAgentSpeakers.com as a featured speaker this month!
Broker Agent Speakers Bureau is a full service Speakers Bureau serving the real estate and financial services industries.
May the beauty of the Thanksgiving season
touch your heart, renew your faith,
and refresh your spirit.
Happy Thanksgiving from
Bob Corcoran
The Corcoran Consulting & Coaching Team
“Our Systems Are Your Solution”
It is rare that a sale is made after just initial contact with a prospect, especially for any large ticket item or service such as real estate. Customers buy on their schedule and it is the job of the agent to stay in touch with the prospect during the sales cycle. Here are some ways to maintain contact throughout what can be a long sales process.
Make sure your message has value for the prospect
One of the keys to successful follow up is making sure your message has value. A contact, by phone, letter or visit that conveys “have you decided yet” is often intrusive to the prospect and seldom successful. A better message conveys “appreciation for your interest, response to questions or your interest in the prospect’s success” is better received.
For additional information and guidance on this topic we have posted an article on our website entitled “Following Up on Lead” for you to review.
Commitment for the Week:
Make A Commitment: I will develop a system to stay in touch with my prospects and follow it!
Deadline: _________
Bob Corcoran
Here’s the scenario - you’re checking the MLS hot sheet for expired listings…it’s a good day. There are more than 30 results showing up. You grab the phone and start dialing for dollars. It’s a scene in thousands of real estate offices every day. It’s also one of the biggest time wasters in an agent’s life. Yes, you read that right, it’s one of the biggest time wasters you can do.
I have nothing against expired listings. In fact, expired listings are a perfect target for agents because these are people who’ve proven that they want to sell and move. Actually, I believe if you approach expired listings the right way, you can make a darn good living on them and them alone.
The problem is timing. Take careful note here, most agents are picking the fruit before it’s ripe. Repeat after me, “I will pick no fruit before its time.” What happens when you join hundreds of your fellow agents all jumping at and reaching for the same apple? You get trampled. You get frustrated. You get lost in the crowd.
Here is a statistic for you to nibble on; a newly expired listing gets anywhere from 15 to 25 calls from agents a day when it first expires. A bunch of agents jumping, reaching and clawing for one apple that’s not ready to be picked or enjoyed…yet. Consider the homeowners whose listing has just expired. First, because their home didn’t sell, agents are likely not at the top of their “I love” list. They have that bad sour apple taste in their mouth. They’re upset. Most important, they didn’t get what they desperately wanted. It is a time when emotions run high. Here is the secret to making a living with expired listings, WAIT! Wait and let the fruit ripen before you start picking. Let homeowners get their bearings back. Let the wound heal.
For additional information and guidance on this topic we have posted an article on our website entitled “Picking the Ripe Apple” for you to review.
Commitment for the Week:
Make A Commitment: I will be patient when following up with Expired listings.
Deadline: _________
Bob Corcoran
A great way to make sure that your customers have an excellent experience working with your team is to develop an attitude within the office of “It is My Pleasure” to serve you. You need to establish a habit whereby everyone says “It is My Pleasure” at every opportunity; this will let your customers know that servicing their needs is of the utmost importance to you.
For additional information and guidance on this topic we have posted an article on our website entitled “Developing an It’s My Pleasure Attitude’” for you to review.
Commitment for the Week:
Make A Commitment: I will have a “My Pleasure” attitude!
Deadline: _________
