The Express Listing Program from Key Masters Real Estate Metro Brokers

by Tom Guest and Cindy Dunn

 Key Master Real Estate continues to offer one of the best listing  system available in the market place today!  Now it is even better.  With the inventory levels at historic low levels, homes that are properly priced and prepared are selling fast.  We offer our seller a reward incentive for their hard work in  getting their home ready for sale.... and pricing it within the range for the market.

If you accept a contract on your home within the first 10 days...the listing commission for the selling side is only 1.0%!  There may be the normal buyer's side commission of 2.8% for the agent who provides a buyer for your home. However....if we can also provide the buyer for your home...we will save you even more.

If you are buying a home in combination with selling and we represent you on the buying side... Key Masters will return a rebate fee of 25% from our buying commission to help pay for your closing costs.

Here is list of the marketing exposure your home will have with the Express Listing Program.

Property Entered in MLS

Internet List Hub coverage on over 38 sites

Trulia Featured Property

Realtor.com Enhanced User Featured Listing

Virtual Picture Tour Published to Realtor.com and syndicated to Various Sites

Color Brochure with Interior Photo Features of Home

Interior Feature Signage

Buyer Aquire 1-800 Sign Rider for Complete Property Description

Open House Events

Property Focused Blogging

Featured Property on Key Masters Real Estate

Professional Online Agent Feedback

You deserve our 20 years professional real estate experience to sell your home!  We offer the Express Listing Program to benefit our sellers.  You'll get the best service available and save too.  It doesn't get any better than that!  Call Tom Guest 303 718 1182 or Cindy Dunn 720 939 1775 to schedule a listing appointment.

With hard-to-get financing one of the biggest hurdles involved in a foreclosure purchase, funding those purchases with a retirement account could be an attractive option that helps investors forgo the hassle of traditional financing and also moves their offers to the front of the line.

One of my jobs, as a Real Estate Broker for Key Masters Real Estate, is keeping everyone in the boat!  Sometimes it's like battling the Angry Birds! It is often an uphill battle to keep Buyers from bailing out an swimming for the shoreline.  They usually calm down.... once the Buyer understands the Loan Officer is not picking on them.  He is actually working extremely hard.... rowing the boat for them.  

I guess the bottom line of the following article is...don't shoot the messenger...or blast a hole in the boat!  Everything is more difficult now, but the rewards will come later when the Real Estate Market rebounds like Tim Tebow, rushing for the goal line, with 2 minutes left in the game!  You know you are going to take a couple of hits, but the headache will be worth it!  Please enjoy this article from Forbes, you can find a reference at the end of this blog.   

Securing mortgage approval and satisfying credit underwriting guidelines are not the difficulties plaguing mortgage consumers. It’s in meeting the rigorous documentation requirements that most people fall flat. The good news is, the fix is
simple. Just scan, photocopy, fax, and deliver every aspect of your financial life. Then, shortly before closing, check everything again.

Mortgage consumers who enter the mortgage approval process ready to battle their chosen mortgage lender will come out with a nightmare story to tell. As the process, requirements, and guidelines are the same for everybody, your mindset is the game-changer. Accepting the redundant documentation necessary for lender approval will make everyone’s life easier.

When I was a kid, my father occasionally issued directives that I naturally
thought were superfluous, and when asked why I needed to do whatever it
was he wanted me to do, his answer was often: “Because I said so.” This never
seemed to address my query but always left me without a retort, and I would
usually comply. This is exactly what consumers should do during the
mortgage approval process. When your lender requests what seems to be over
-documentation and you wonder why you need it, accept the simple edict –
“because I said so.” You will find the mortgage approval process much less
frustrating.

So, what’s the perfect loan? Well, it’s one that (a) pays back the lender and (b)
pays back the lender on time. Underwriting the perfect loan is not the goal
that mortgage lenders aspire to today.

The real goal is the perfect loan file.

Mortgage lenders have suffered staggering losses and gone out of business
because of the dreaded loan repurchase. As mortgage delinquencies
increased, FannieMae and FreddieMac began to audit mortgage loans they
had purchased and discovered substandard and fraudulent underwriting
practices that violated representations and warranties made, stating these
were high quality loans. Fannie and Freddie began forcing the originating
lenders of these “bad” loans to buy them back. So a small correspondent
mortgage lender is forced to buy back a single mortgage loan in the amount of
$250,000. This becomes a $250,000 loss to a small mortgage business for a
single loan, because it will never be repaid.

It doesn’t take many of these bad loan buybacks to close the doors on many
small mortgage operations. The lending houses suffered billions of dollars of
losses repurchasing loans from Fannie and Freddie, and began to do the same
thing for loans they had purchased from smaller originators.

The small and medium sized mortgage originators that survived created
underwriting guidelines and procedures to eliminate the threat of future loan
repurchase losses. The answer? The perfect loan file.

It’s no longer necessary to have excellent credit, a big down payment and
stable employment with income sufficient to support your debt service to
guarantee your loan approval. However, you must have a borrower profile
that meets the credit underwriting guidelines for the loan you are requesting.
And, more importantly, you have to be able to hard-copy-guideline-document
your profile.

Every nook and cranny of your financial life has to be corroborated, doubleand
triple-checked, and reviewed again before closing. This way, if the
originating lender has created a loan file that is exactly consistent with
published underwriting guidelines and has documented while adhering to
those guidelines, the chances are that your loan will not be subject to
repurchase.

Borrowers also need to prepare for processing and underwriting. Processors
and underwriters are the people trained and charged with gathering
(processors), all of your required-for-approval financial documents, and then
approving (underwriters), your loan. You can assume these people are well
trained and very experienced, as they are tasked with assembling and
approving a high-quality-these-people-will-pay-us-back loan file. But just
how do they go about that?

The process begins with the filter – the loan originator (a.k.a loan officer,
mortgage consultant, mortgage adviser, etc.) – tasked to match the
qualifications of a particular mortgage deal to the appropriate underwriting
guidelines. It is the filter’s job to determine if a loan scenario is approvable
and to gather the documentation to support that determination. It is here, at
the beginning of the approval process, where the deal is made or broken. The
rest of the approval process is just papering the file.
The filter determines whether the information provided by the borrower can
be validated and documented. This is simple, since most mortgages are
approved by automated underwriting engines such as Desktop Underwriter,
and the automated approval generates a list of the documents needed to
paper the loan file. An underwriter can, at this stage, request additional
supporting documentation evidence at their discretion, as not all
circumstances neatly fit into the prescribed underwriting box. If the filter
creates a loan file with accurate information, then secures the documentation
resulting from the automated underwriting findings, the loan will close
uneventfully.

So, let’s begin with the pre-approval call. Mortgage pre-approval is typically
accomplished with a telephone interview. A prospective borrower calls a
mortgage rep (filter), and the questions begin. There will be lots of questions
as this critical phase of the process is akin to the discovery period in a trial –
you’ll need to disclose everything. Expect to answer queries on what you do
for a living, how long you’ve been employed in your current field, and what
your salary is. If there is a co-borrower, they will have to answer the same
questions.

Every dollar in checking, savings, investments and retirement accounts, also
known as assets to close, as well as gifts from relatives and non-profit grants,
has to be accounted for. Essentially everything appearing on a borrower’s
asset-radar-screen has to be documented and explained.
If you were previously a homeowner and sold your home in a short sale, or if
you own a home now and plan to keep it as an investment or rental property,
there are new and specific underwriting guidelines created just for you. In
these cases, full disclosure of your credit and homeownership past can
potentially eliminate unforeseen mortgage approval woes. For instance,
FannieMae has a new underwriting guideline called “Buy-and-Bail,” for
current homeowners’ planning on keeping their existing home as an
investment/rental property. Properties not meeting the 30% equity test for
“Buy-and-Bail” result in additional asset requirements to purchase a new
home. Buyers with a short sale history may have to wait two to three years
before they are eligible for mortgage financing again. Full vetting of your
previous mortgage life will save you the dreaded we-have-a-problem call from
your mortgage lender.

It all comes down to your proof. If the lender asks for a specific document,
give them exactly what they are asking for, not what “should be OK,” –
because it won’t be. This is where the approval process tends to go off the
rails, when the lender asks for specific documentation and the borrower
supplies something else. Here, too, is where both sides get frustrated. So if the
lender asks for a bank statement and there are 5 pages for that bank
statement, send them all 5 pages, and not just the summary. If you send them
the summary page and they ask again, don’t complain that the lender keeps
asking for the same thing when you never sent it in the first place. This may
sound elementary, but the vast majority of mortgage approval process woes
stem from scenarios just like this.

The reason the mortgage approval process is now so rigorous is simple.
Avoiding defaults and loan buybacks has become the primary goal of
mortgage lenders. Higher standards are reducing loan defaults, which
should mean fewer foreclosures in the future. Government data shows that
less than 2% of loans originated in 2009, that were resold to Freddie Mac and
Fannie Mae went into default after 18 months, down from more than 22%
default rates for 2007 loans.

So when your lender requests specific documents from you, give it them just
“because they said so.”

You can thank my dad for that.

This article is available online at:
http://www.forbes.com/sites/moneybuilder/2012/03/09/the-perfect-loan-file-2/
The Perfect Loan File -
http://www.forbes.com/sites/moneybuilder/2012/03/09/the-perfect-loan-file-2/print/ 3/23/2012

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Foreclosure alternatives were developed by both lending institutions and the government to offset losses incurred by banks during the foreclosure process. The Mortgage Bankers Association reports losses in excess of $50,000 to banks on each foreclosed home, making the foreclosure alternatives listed in this section highly sensible for them to consider.

Foreclosure and foreclosure alternatives are completely separate processes. The homeowner must initiate the foreclosure alternative process. Alternatives such as loan modifications and short sales can take months to complete and are subject to the bank's approval. In the meantime, the foreclosure process, if initiated by the bank, continues at the same time. Therefore, it is vital that the homeowner act quickly and correctly.

Foreclosure alternatives can prevent foreclosure only when they are initiated early in the foreclosure process, the bank decides to remove any foreclosure sale date, or when the alternative is approved and completed.

Hope for the Best, Prepare for the Worst

No foreclosure alternative is guaranteed. However, as long as homeowners are proactive their chances of preventing foreclosure and taking control of their financial future drastically increases. To find out what rights and options are available to you, go to our SSAA.Org website at www.ShortSaleKeyMasters.com.

http://acnhomestore.acnrep.com/v.asp?I=1B11406D5F0E&

Key Masters Real Estate is a Full Service Company with Metro Brokers that offers you the best Real Estate and Relocation Services available.  Servicing Buyers and Sellers in Highlands Ranch, Centennial, Denver, Englewood, Aurora, Parker, Castle Rock, Littleton....and all cities in the Denver Metro Area and Mountian Properties.  Tom Guest is the Broker Owner of Key Masters Real Estate.  They employ 5 agents, Cindy Dunn, Julie Reddington, Kathy Soltero, Christina Morris and Jesse Sardakowski.

"Visit Key Masters and I guarantee we hold the key to making your home search enjoyable and successful!"

Tom Guest

Key Masters Real Estate

Broker Owner

President Metro Brokers

303 718 1182

Who’s Buying and Where?

The landscape of the housing market has seen some changes following the economic fallout.

Premium content from Denver Business Journal - by Dennis Huspeni

Date: Friday, April 29, 2011, 4:00am MDT

Related:Commercial Real Estate, Residential Real Estate

Kathleen Lavine | Business Journal

Tom Guest, broker/owner at Key Masters Real Estate, is president of Metro Brokers for 2011. He says about 60-80 percent of the business recently has been in the foreclosure market.

You can’t talk about trends in the Denver residential real estate market without acknowledging the proverbial elephant in the room: foreclosures and short sales. But Realtors and analysts are seeing signs of life from other market segments, such as luxury homes.

“At least 60-80 percent of business now has been in the foreclosure market,” said Tom Guest, president of Metro Brokers, with 1,400 agents.

“If you’re a Realtor and not been in the foreclosure market, or some aspect of it, you’re struggling. But a lot of people are looking now. The majority are looking for a primary residence and the first-time homebuyer is back.”

That trend stems, in part, from falling apartment vacancies and rising rents, analysts said.

When rental rates start to equal a mortgage payment, more people start looking to buy. Couple that with still favorable mortgage rates, and a trend starts to emerge.

“People are buying for location and value now,” said Mike Rinner, executive vice president of The Genesis Group, an Englewood-based real estate market research and analysis firm. “When times are good and this is the place they’d like to live, value is not as important. ... But in bad times, value and location are both important.”

“There’s been so much negative news, but there are a lot of positive things this year,” said Coldwell Banker’s Zac Nelson, who has worked the Denver market for almost 10 years. “One of them is the luxury market.”

Million-dollar homes start to move

Lon Welsh, founder and managing broker of Your Castle Real Estate, said statistics show the luxury market is heating up.

“The cheapest 10 percent of the market, under $85,000, clearly shows it’s a seller’s market,” Welsh said. “But on the high end, those over $460,000, it’s very much a buyer’s market.”

A statistic called “months of inventory” illustrates that fact. It’s how many months it would take the market to sell out, based on current sales figures and number of homes for sale.

While there are only 4.6 months of inventory for homes under $85,000, there are 9.1 for homes over $450,000.

In addition, the price of luxury homes has dropped as sellers become more realistic about what the market will bear, Nelson said.

“I’ve seen several price adjustments of hundreds of thousands of dollars; some even came down a million,” Nelson said. “Most hit a breaking point, and they’re tired of having their home on the market. They were living in a 2005 market. There’s only so much marketing a Realtor can do. In the end, it comes down to price.”

Nelson pointed to National Association of Realtors statistics for the Denver market that showed 2,849 homes from $500,000 to $1 million sold here in 2010, compared with 2,632 in 2009 — an 8 percent jump. For homes selling for more than $1 million, the growth was even more pronounced: 444 homes at a million-plus sold last year, up 13 percent from 388 in 2009.

“While the luxury market is recovering, we’re starting with a lower base,” Genesis’ Rinner said.

“The tax credit last year depleted small home inventory and ran up prices, while the high end was neglected,” Welsh said in one of the analysis reports Your Castle specializes in. “This year has a much more balanced inventory, and appreciation has been more balanced, too.”

The federal government’s $8,000 first-time homebuyer tax credit and $6,500 credit for existing homeowners expired April 30, 2010.

Where’s the action?

Denver’s core has hot spots regarding number of homes sold and on the market.

“I’m seeing a lot of movement in Washington Park and Capitol Hill,” Guest said. “Those older properties are drawing a lot of interest. People wanted to move in before, but they couldn’t afford it. Now the prices are coming down a little.”

Nelson said the general trend has been for people to buy closer to urban areas, while trying to hang on to suburbia.

“While it’s still around the core, the market still is and will continue to be neighborhoods that are walkable and bikeable, near the light rail and where the future light rail will be,” he said.

That’s why there’s so much activity in the area northeast of downtown, north of City Park.

Another factor for that area, Nelson said, is that a single-family home can be purchased for around $150,000 there, where the same home would cost $250,000 or more farther into suburbs such as Arvada, Highlands Ranch or Lone Tree.

Rinner noted he’s seen a lot of activity in areas that are “pushing the envelope in price.”

“They have nice, new, master plans where the builder has brought a lower price with value engineering,” he said.

Rinner mentioned such developments as Blackstone and Beacon Point, both in Aurora, and Whisper Creek and Taylor Morrison, both in Arvada.

“That’s a value play there,” he said of the Whisper Creek homes. “It’s tough to get into an Arvada home” for those prices.

Judging by statistics from the Colorado Housing and Finance Authority (CHFA), and experts’ anecdotal evidence, the metro area home buyer’s profile has changed since the end of the Great Recession.

While there’s been little change in the number of buyers ages 25 to 44, according to Jaime Gomez, CHFA’s chief operating officer, there are markedly fewer younger buyers and a lot more older buyers.

“There’s been a decrease in the number of 18- to 24-year-old buyers,” he said, noting that CHFA deals with first-time homebuyers in the affordable housing market for homes up to $350,000.

In 2008, 19 percent of CHFA’s loans went to buyers in that age group. By 2010, that number dwindled to 13 percent. Conversely, there were 17 percent of buyers above 44 in 2008, and that jumped to 22 percent in 2010.

CHFA, a state-created lender, works to provide financing to homebuyers, small and medium-sized businesses, and apartment developers.

Number of younger buyers declining

“We think there are a couple of reasons for that,” Gomez said. “Everyone knows the national job market is difficult, especially for people in that age group who are just out of high school or college trying to find a job. They might be staying in school longer or saving enough money to get into a home.”

Lenders also are looking for more credit history, especially since the lending rules have become more stringent after the Great Recession.

That also could explain the spike in the older demographic, whose members have more credit and a longer credit history, he said.

As far as resales, Nelson said there are more among those 30 to 40.

“You just see a younger push, with the buyers using technology and social media to do research and getting recommendations on where to buy,” Nelson said. “It may just be coincidental, because the prices coming down allowed more opportunity for buyers to qualify — along with lower interest rates.”

Gomez also provided a telling statistic about the increase in minority homeowners, which jumped from 23 percent in 2008 to 32 percent in 2010.

“That’s a pretty significant increase in the last two years,” he said.

Gomez attributed that to lenders previously targeting minorities with risky adjusted-rate-mortgage (ARM) loans.

Those have become scarcer since the recession, and those buyers are following the “flight to quality” and using more conventional, 30-year, fixed-rate loans that CHFA offers.

CHFA doesn’t offer ARM loans.

Metro Broker’s Guest said he’s seen more employers bringing in new hires.

During the recession, there were a lot of talented, unemployed workers and less reason to move people. That’s starting to change.

“There definitely is a re-emergence of the relocated buyer,” Guest said. “There was a lot of shopping in the fourth quarter, and the budgets for companies hit in the first and second quarter, so there’s been more activity.”

It is possible to purchase a home right after going through a Short Sale!

By far the easiest mortgage to obtain is a FHA loan:

1) 3.5 percent down payment, based on the purchase price of the home (e.g., $7,000 on a $200,000 home), or a gift of that same amount;

2) 3 percent to 6 percent of the purchase price, on top of the down payment, for closing costs, or a credit from the seller of the same amount; and

3) 640 FICO credit score — the middle score of those generated by the three credit bureaus (some banks will lend to borrowers with middle scores lower than 640, but will require more than the minimum down payment).

Lenders will want you to document income, asset and job history documentation, current paycheck stubs, two months’ bank statements and two years of W-2 forms or tax returns, and:

• a minimum of two years have passed since the discharge of a bankruptcy;
• a minimum of three years have passed since a foreclosure;
• anywhere from zero to three years have passed since a short sale, depending on the circumstances surrounding the short sale.

Contact Key Masters Real Estate to guild you in the right direction to purchase your next property.  We are experts in the purchase of Short Sale Properties, Bank Owned and Foreclosures.  We have lenders who can assist you in getting qualified for your next purchase.  Visit our website to search for Bank Owned and Foreclosure Properties at www.KeyMastersRealEstate.com .