Home Warranty Tips Before Buying

 Home service contracts have always been a good way for sellers to entice buyers who may need a little more incentive to move forward while negotiating a sale. It's not uncommon for a home to be advertised for sale with a Home Warranty included. Service contracts typically cover repairs to appliances, air conditioning and heating units and water heaters. As simple as that may sound, all service contracts are not the same and the cost can vary according to the age of the home and items covered. You should weigh the costs and check what the policy allows before deciding on one.


Service contracts normally range in price from $250 to $500 per year. Here are some things to consider before buying on:

- Check customer reviews of the company and the contract at homewarranty.com

- Check the coverage and any exclusions it may have. Will the allowance cover the cost of a replacement if needed. Most offer a depreciated replacement value. If the appliance is 10 years old the actual replacement cost may exceed the allowance. Look for full replacement value.

- Verify what is and is not included. Are all appliances included?

- Are there extra add on services that may be worthwhile? Some have extended plumbing and electrical coverages.

- Are there any added service call fees that you should know about.

Service contracts are always loaded with exclusions and exceptions. Being aware of the exclusions can make a great deal of difference in deciding on one over another.

George Sinacori

GES Real Estate LLC

Streamlining the Short Sale Process

Hoping to positively influence the nations housing market by shortening and simplifying the short-sale process, the Treasury Department released new guidelines for borrowers, lenders and loan servicers. Adding another acronym to its list of government-sponsored programs, (this one is called HAFA) Home Affordability Foreclosure Alternatives.

The new guidelines offer incentives to borrowers and loan servicers for utilizing a short sale in order to avoid foreclosure. Some of the key features of HAFA include:
- Seller / Borrower can recieve up to $1500. for relocation expenses
- Borrowers are fully released from any future liability for the debt.
- Treasury Dept. will share the cost of clearing junior liens from 2nd mortgage holders in order to help release any claim that may interfere with the short sale process.


According to the Treasury Department publication,
"The program will publish streamlined and standardized documentation, including a Short Sale Agreement and an Offer Acceptance Letter. Creating one standard set of documents that the industry can use is expected to minimize the complexity of these transactions and significantly increase use of the short sale option."

The property must be listed with a licensed real estate broker and no foreclosure action can take place during the marketing period as long as the seller/borrower is acting in good faith. There is a maximum marketing period of 1 year to ensure that everyone is moving as quickly as possible in order to accomplish the short sale. Currently expiration of the program is scheduled for Dec. 31 2012.

For a complete text of the Treasury Departments guidelines please call me directly at 561-306-6736 or email rebuygeorge@yahoo.com. You can also go to my website at http://www.ges-realty.com/

Lenders Fail to Modify Homeowner Loans

Politics and corporate greed continue to eat away at the hearts and wallets of American homeowners and the American dream.



According to Bankrate.com just 2000 homeowners have received loan modifications beyond the typical 3 month trial period nationally in the 7 months since the administration issued it's guidelines to lenders in order to help homeowners avoid or avert foreclosure. That equates to approximately 4 successful modifications per month per state. Lenders will typically stall short sale efforts simply because they can't see beyond dollars and cents. If the Bankrate.com information is correct they have danced around and away from folks asking for modification assistance and the Fed isn't concerned.



The Obama administration's claims of 500,000 homeowners being helped may be little more than political grandstanding again at the expense of homeowners who have been brought to their knees financially leaving many without any other recourse but to eventually walk away and try starting over somehow.



If you need help or have question regarding todays real estate and mortgage markets in SE Florida please call me directly 561-306-6736 or email your questions to rebuygeorge@yahoo.com Find more information about the SE Florida Real Estate market at GES-Realty.com

Short Sale Failures Frustrate Sellers

Home sellers are as frustrated as Realtors when the deal involves a short sale, as most home sales do these days. A recent survey revealed that only 23% of short sale contracts actually get to close. Although buyers come pre approved for financing and prices are market value, a host of problems still plague the short sale process. Rapidly falling appraised values due to neighborhood foreclosures combined with the snail like pace of lenders processing short sale packages are the heart of the problem (in my opinion).

Delays by lenders allow impatient buyers to walk away while values deteriorate to a lesser price than contracted for. A more efficient system may in fact reduce pending sale times with a more workable window and help to hold sales together. Short sales, after all should be seen as a way to prevent foreclosures and related costs to lenders. It's frustrating that with a way to avoid those costs many wind up in foreclosure anyway as a result of prolonged waiting periods. many lender delays are a result of insufficient staff and a lack of short sale experience and processing systems. Delays may also occur as a result of Realtor inexperience in submitting documents or informing buyers and sellers of the length of time involved.

Some lenders are considering or at least examining ways to shorten the process and short sale approval time by getting BPO's (appraisals) and setting bottom line prices in advance of a contract. Ideally this lets a seller and realtor offer a property for a price that has already been accepted by the lender. The Treasury Dept. expects to provide lenders with a standard set of documents as well along with added incentives to help move the process along. Both steps in the right direction and an inevitable step in the evolution of home selling. More and more short sales are becoming the standard for home selling. The need for expeditious systems is now.

If you're trying to sell or buy a home please call 561-306-6736 or email me for more valuable information. Go to GES Realty.com for any real estate searches or click the link in the left margin to search properties.