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In a housing market where many are having trouble obtaining the financing that they need for a home, short sales are a desirable option. The trouble is that many people have a view of short sales that is less than favorable. They believe that the property will be in bad condition or that the process to close the sale will take far too long. As a Wilmington, DE real estate agent who specializes in short sales, I think it’s important to say that while these two things can be true on occasion, the majority of short sale transactions can actually go smoothly, and that not all short sale properties are in bad condition.

There are a few tricks of the trade that I have picked up in my many years of working in Wilmington, DE short sales that I thought I’d share with you! If you follow these ten steps closely, you can close your short sale quickly and with little stress involved. Just remember one thing: in every real estate transaction, patience is important, so trust your Wilmington, DE real estate agent to guide you and get the job done.

1. Search for short sales in your area! There are plenty of short sales available in the Wilmington, DE area, so use an online database, courthouse listing or legal ads to locate properties that you may be interested in and let your agents know which ones you would like to look at!

2. Take a look at the property. Pictures and ad copy can be misleading, so it’s incredibly important to see the property for yourself before you decide to purchase a short sale. Is the house in decent condition? Will it need major work, or just a few minor repairs? If you’re in a position where you want to buy the property in order to fix it up and put it back on the market, then a house that needs work won’t be a problem. If you’re looking for something more move-in ready, however, then you may need to move on.

3. Do your research and run the numbers. How profitable will this Wilmington, DE short sale be in the long run? Even if you’re a first-time homebuyer who is looking to live in the home, there is a chance that you may want to put this property on the market one day. Is there potential for its value to go up? What is the property worth now? These are all questions that you should ask yourself before making an offer.

4. Find all liens and mortgages. You need to ask the seller or their agent what liens are on the property and who the primary lien holder is.

5. Figure out your financing. Now it gets a little tricky. You need to figure out how you are going to pay for the property. Are you going to be a cash buyer or ask the existing lender to give you a loan? If you’re a good credit risk, the latter may be a great option, and it will expedite the financing process. In order to close a short sale, you need to move quickly, so this stage is not the time to start shopping around for a mortgage.

6. Contact the lender. Either you or your Wilmington, DE real estate agent needs to contact the loss mitigation department of the existing lender and discuss the situation on the property’s current mortgage. Before doing so, get the existing owners to sign an authorization letter stating that you are allowed to contact the lender to sort this out.

7. Complete the lender’s short sale application, if needed.

8. Assemble the proposal. This is where your Wilmington, DE short sale agent will come in handy! Besides the application and authorization letter, you will need several more documents that the lender will use to review your offer. You need the purchase and sale contract between you and the seller, stating that you agreed on a price. You will also need a letter of hardship proving that the homeowner can’t pay what’s due, a statement of the property’s value, a detailed explanation of all of the costs and liabilities and a settlement statement put together by a closing agent. Have everything lined up before submitting anything to the lender.

9. Negotiate. It’s really not uncommon to go back and forth with the lender. They will likely counteroffer your initial, proposed price. Figure out what your highest limit is beforehand and stick to it. If the lender won’t meet your figure, it may be time to walk away.

10. Seal the deal. Once you’ve reached an agreement that you, the seller and the lender all approve of, then it’s time to close and claim your new piece of property!

The process might seem long and drawn-out, but if you go into your Wilmington, DE short sale transaction prepared, then you will find yourself a property owner sooner rather than later. As a Wilmington, DE real estate agent who specializes in short sales, I feel that it’s important to prepare my clients for the process ahead in order to ensure success in their transaction. Hopefully, by breaking down the process a bit, you will see that these transactions are manageable, provided that you have the right real estate agent to help you through it.

If you have any questions about Wilmington, DE short sales, don’t hesitate to contact me! I hope to hear from you soon.

Katina Geralis
Wilmington, DE Real Estate Expert
Keller Williams Realty
Wilmington Real Estate
Wilmington Homes for Sale
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With a new year comes a fresh look at what will happen in housing! Due to the fact that mortgage rates are set to stay low throughout 2012, many Wilmington, DE homebuyers are thinking that now is the time to start thinking about buying a home. This is an exciting and big step to take, however there is one thing that could potentially stop you from finding the Wilmington, DE home of your dreams, and that is obtaining a mortgage.

Getting a mortgage loan has been and will continue to be a challenge. The key to getting the financing you need for your Wilmington, DE real estate transaction is to become a savvy borrower. Although financing will likely be a bit challenging, if you approach your lender prepared, you will likely have success in obtaining a loan for your dream home. As a Wilmington, DE real estate agent, I feel that it’s important to help my clients through every phase of the home buying process. These six tips will help you get the financing you need for your future home.

Know your credit backward and forward. The most important step in obtaining a loan is having a good credit score. Have your most recent credit reports ready and on-hand, and if you need to, start taking steps to improve your score now.  If your credit is bad or you need some time to rectify your score, then now may not be the best time to apply for a mortgage loan.

Have your paperwork ready to go. Every lender requires very specific documents for their mortgage application. Don’t wait for your bank to ask you for them! Have all the important paperwork ready to go early and your lender will see how prepared you are.

Have a realistic price point. It’s important to know how much you can afford before approaching your lender. Calculate what you can afford ahead of time, create a budget and leave a little wiggle room for unforeseen expenses. This will help you better estimate your monthly mortgage payments and will help you get the best loan possible for your financial situation.

Don’t settle for the first lender you meet. Shop around for a mortgage. It’s important to get a few different perspectives on what loans you qualify for. Don’t rely solely on interest rates; there are other factors that should go into your decision. Meeting with a few different lenders and brokers will help you pick the best possible combination for your financing needs.

Work in a timely fashion. You could lose out on the house you want or on your loan if you don’t work within an efficient timeframe with your lender. Ask for an estimated closing date and keep following up with your lender until the transaction is closed.

Keep your credit intact…even after approval. Once you get financing, you will be relieved, but it can be taken away if your credit rating doesn’t stay put. Don’t take out new lines of credit, finance a new car or have a slew of late bill payments. Stay on top of your finances.

These are just a few of many ways that you can become a savvy borrower! Obtaining financing for a new Wilmington, DE home can be challenging, but with the right guidance and smart strategies, you can get the mortgage you need to move in. As your Wilmington, DE real estate agent, I think that that it’s important to let you know the best way to deal with any obstacles that could come your way throughout your real estate transaction.

If you have any questions about what homes are available on the Wilmington, DE real estate market, don’t hesitate to contact me! I’m happy to help you whenever you need me. I hope to hear from you soon!

Katina Geralis
Wilmington, DE Real Estate Expert
Keller Williams Realty
Wilmington Real Estate
Wilmington Homes for Sale
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It’s one of the most dreaded parts of any Wilmington, DE real estate transaction. The appraisal is a cause of anxiety for many people who are looking to buy or sell a home. Although they can oftentimes be a more irritating part of any real estate transaction, an appraisal is necessary for determining the value of a home. Even the most seasoned Wilmington, DE homebuyers or sellers have most likely experienced issues with an appraisal. They’re ever-changing due to changes in the law, and there isn’t a whole lot you can do about it. You just have to be cooperative and be as prepared as possible for the process.

As a Wilmington, DE real estate agent, I have been through my fair share of appraisals. I use my knowledge and experience of the local real estate market to prepare my clients for what they can expect during this phase of their transaction. Along the way, I have discovered that there about five things that buyers and sellers should know before going through an appraisal on their Wilmington, DE home:

Appraisals may take longer than you think. Many home buyers and sellers think that appraisals take a couple of days, but in reality, they could take a couple of weeks. This is due to appraisal laws that state that your mortgage broker can’t hire their own appraiser. Instead, a third party appraisal management company has to be brought in. The involvement of another party may slow down the appraisal process, but it also ensures that you’re getting an accurate value on your home, as they don’t feel the need to please the mortgage companies with their estimate.

They cost a lot of money. Appraisals can cost several hundred dollars. The average price can range from $400-$500, due to the inclusion of a third party in the process. This is an expense that many home sellers and buyers in the Wilmington, DE area don’t take into account during the transaction, and it’s an important one. The extra $500 could make a difference, so make sure that you plan for it financially.

The outcome could be frustrating, and you need to be prepared. While the appraisal is an incredibly important part of a real estate transaction, it can also be frustrating, as the outcome typically benefits either the buyer OR the seller, not both. If the price is a bit higher than it should be, according to the appraiser, then that obviously benefits the seller. Similarly, a lower appraisal estimate would benefit the buyers more than the sellers. As a Wilmington, DE home buyer or seller, it’s important to be prepared for either outcome and factor that in to your decisions about the transaction.

Sellers should be involved in the appraisal process. Don’t work in your garden or catch up on your errands when the appraiser comes to your home. Make it clear that you’re going to be present from start to finish to answer any questions that they may have about the home. Let the appraiser know of any upgrades or repairs, and be sure to point out details that you think may add worth to your home. Features such as granite countertops can often be missed by appraisers, and they can add value, so you’re going to want to make sure that those little details are accounted for.

Be aware of the rules. Contrary to popular belief, appraisers are allowed to speak to your Wilmington, DE real estate agent. It’s also required that your appraiser be familiar with your area so that they can put the most accurate value on your home. Being aware of these things ahead of time will help you catch any red flags that could come up, such as bringing in an appraiser that is unfamiliar with your neighborhood.

As a Wilmington, DE homebuyer or seller, preparedness is the best way to ensure that your appraisal goes as smoothly as possible. These five tips will help you know what to expect from the process, and it lets you know what aggravations may come your way ahead of time. While the appraisal is possibly one of the least-desirable parts of a real estate transaction, it is also a necessary one. My many years of experience as a Wilmington, DE real estate agent has allowed me to gain the knowledge needed to fully prepare my clients for this aspect of their transaction.

If you have any questions about the Wilmington, DE real estate market, please don’t hesitate to contact me. I’d love to help you out in any way I can. I hope to hear from you soon! Have a great day.

Katina Geralis
Wilmington, DE Real Estate Expert
Keller Williams Realty
Wilmington Real Estate
Wilmington Homes for Sale
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Going through a bankruptcy, foreclosure or short sale is heartbreaking, and for many people in this economic climate, it is a reality. One of the biggest fears of Wilmington, DE homeowners who begin to go through financial hardship is that if they go through one of these three processes, then they won’t be able to ever own a home after the fact. This is not true. You can be a homeowner again. All it takes is two qualities: patience and hard work.

It’s not impossible to buy a home in Wilmington, DE after suffering from a financial hardship, but in order to do so, you will have to clean up your credit and wait for a certain amount of time after the foreclosure, short sale or bankruptcy. As a Wilmington, DE real estate agent who specializes in foreclosures and short sales, part of my responsibility is to reassure my clients that this isn’t the end: they CAN become a homeowner again. It is also my job, however, to let my clients know exactly what they need to do to accomplish this after suffering from a Wilmington, DE foreclosure or short sale. Here are just a few of the more important things they’ll have to keep in mind if homeownership is the goal:

You’re going to have to wait awhile. Those who have suffered a financial hardship in Wilmington, DE could wait anywhere from 1-7 years after the fact before getting a home loan. If you went through a bankruptcy and have a spotless subsequent credit history, then you may have to wait only one year. If you went through a Wilmington, DE short sale or foreclosure and are looking for a conventional loan from Fannie Mae or Freddie Mac, you will most likely have to wait 7 years. In between are 2, 3, and 4 year timelines that all depend on extenuating circumstances surrounding the foreclosure or short sale.

Make sure your credit stays clean. If you miss even one credit card payment after losing your home in a foreclosure or short sale, then you are pretty much ruining your chances of getting a loan in a shorter time span. Make every credit card payment on time and show signs of stable employment. The more spotless your credit is after financial hardship, the more willing banks will be to get you your loan in a shorter time frame.

Consult an expert. Shortly after going through your Wilmington, DE foreclosure or short sale, you need to make sure that you consult a mortgage or loan expert for advice. They can give you a realistic time frame for when you can expect to be a homeowner again, and they’ll also tell you what steps that you need to take before it’s possible to get a loan again. As a Wilmington, DE real estate agent, I know several people in the industry that can help counsel you on a strategy after your foreclosure or short sale.

None of these steps are easy to take, but they are necessary if you want to become a Wilmington, DE homeowner after losing your home in a short sale, foreclosure or bankruptcy. As a Wilmington, DE real estate agent, it is part of my job to help distressed homeowners in the area figure out the appropriate plan for their financial situation and get them on the right track. I also need to help advise them on what steps to take to mend the damage caused after a foreclosure or short sale.

 If you have any questions about Wilmington, DE short sales or foreclosures, don’t hesitate to contact me! I’m happy to lend a helping hand and listening ear for anything that you may need. I’d love to hear from you.

Katina Geralis
Wilmington, DE Real Estate Expert
NextRE Team
Wilmington Real Estate
Wilmington Homes for Sale
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You hear it on the news every day: this is a difficult economy. Due to high unemployment rates and a poor economy, more and more homeowners in the Wilmington, DE area are falling behind on mortgage payments. This has led to a higher amount of delinquent mortgages and an increase in the number of homes going into foreclosure. This has caused a huge and stressful burden for many Wilmington, DE homeowners. The fear of one's home going into foreclosure can be overwhelming and cause high anxiety levels for those who are behind on their mortgage payments each month.

As a Wilmington, DE real estate agent, part of my job is helping those who are in danger of losing their homes avoid foreclosure. Foreclosure is a painful, lengthy process where the party involved loses their home and typically can’t get another one for several years afterwards. As a real estate agent who specializes in distressed properties, I offer the clients who come to me with advice on how they can avoid the foreclosure process. My years of experience in the Wilmington, DE real estate market allow me to ease the stress for several homeowners who are in danger of losing their homes by offering them viable and better options to foreclosure.

Get a loan modification. Load modifications benefit homeowners because it means that they get to keep their home. The lender agrees to modify any or some of the terms of the mortgage, whether it be by extending the term of the loan, changing monthly payments so that they are more affordable or changing the interest rate. The result is that the mortgage becomes more affordable and they can get their home out delinquent status. This option is viable for those who have both proof of hardship AND sufficient income for the re-calculated monthly mortgage payment. This is the best alternative to foreclosure, however in this economy; it is much more difficult for Wilmington, DE’s homeowners to get through this process. Many might be rejected by their lenders for a loan modification. That is where the next option comes into play.  

Go through the short sale process. When a Wilmington, DE homeowner is facing foreclosure and can’t get a loan modification, the next option that they will want to explore is the short sale. A short sale occurs when the lender gives the homeowner permission to sell their home for less that the outstanding balance owed on the mortgage, producing a quick sale. This helps distressed homeowners avoid foreclosure. While this does put a damper on the homeowner’s credit rating, it’s a lot less stressful than a foreclosure, and you can buy a home much faster after the process is over. Many homeowners in the current economic climate are eligible for a short sale, so this could be a very viable option for you! Contact your Wilmington, DE real estate agent with questions about short sales and see if you qualify for one.

The foreclosure process is trying, stressful and lengthy for all involved. As an expert on Wilmington, DE foreclosures and short sales, I do the best I can to give all of my clients alternative options that are both viable for their financial situation and will cause the least stress or anxiety. I make it my responsibility to make sure that all of my clients are aware of all of their options. If you feel like you’re in danger of losing your Wilmington, DE home, or you have questions about the local real estate market, don’t hesitate to contact me. I’m here to help you through this difficult time, even if it’s only to lend a few words of advice. I hope to hear from you soon!

Katina Geralis
Wilmington, DE Real Estate Expert
NextRE Team
Wilmington Real Estate
Wilmington Homes for Sale
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As a Wilmington, DE real estate agent, I see my share of nervous home sellers. Particularly in a buyer’s market, marketing a home is tricky. The competition is fierce and you want to make sure that everything goes perfectly. This way, your home will be sold faster for the best price possible. I make it my responsibility to educate those who are interested in selling their Wilmington, DE home about the various tactics and techniques one should use before, during, and after marketing their listing. There is one step that I always recommend: Before listing your home on the Wilmington, DE real estate market, get a home inspection!

Home inspections are an inevitable part of selling your home. It’s understandable. A buyer wants to make sure that their Wilmington, DE home is up to code and ready to move into, but they can also use the inspection results to try and get more out of the seller. The only way to avoid such an unfavorable outcome is to get an inspection before listing your home. Here are some of the benefits to getting your Wilmington, DE home inspected early-on in the selling process:

•    Buyers will perceive a greater value on the home. If the home has already been through an inspection, then the buyers will see that as one less thing to worry about. As a result, you can ultimately get more money from the sale.

•    You can avoid buyer’s remorse. If you complete a Wilmington, DE home inspection well in advance, then you can address all of your home’s defects early-on. This can help avoid buyer panic after the contract is submitted and negotiations are completed. This can help you avoid catastrophes and headaches down the line.

•    It keeps the transaction positive. If a buyer is more focused on the positive, fixed aspects of the home, then they won’t get caught up in the home inspection and try to negotiate more out of you, the seller. It cuts down on buyer demands and gives you the opportunity to get the most value possible out of your Wilmington, DE home.

There are no perfect houses. No matter how amazing you feel that your property is, I can guarantee that a home inspection will find something that needs to be fixed. This isn’t something that you should worry about too much. As your Wilmington, DE real estate agent, I have contacts and connections with several home repair companies in the area. I can help you find the right professionals to fix any and all problems found during your home inspection. It’s the best way to get your Wilimington, DE property ready for the local real estate market!

As always if you need any help with your Wilmington, DE home sale, or you want more information about getting a home inspection, don’t hesitate to contact me! I’d love to help you in any way that I can. I hope to hear from you very soon!

Katina Geralis
Wilmington, DE Real Estate Expert
NextRE Team
Wilmington Real Estate
Wilmington Homes for Sale
Visit My Website
Contact Me
Find me on Facebook
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