This week Treasury Secretary Henry Paulson, with the support of President George W. Bush, unveiled a plan to aid certain homeowners who face the prospect of higher mortgage rates in the next few years.

Can you get your mortgage payments lowered because of the bailout?

It depends. If you’ve got an adjustable-rate mortgage, you may qualify under certain conditions. If you’ve got a standard mortgage with a fixed interest rate, you’re not affected.

Read the details here.

Please contact me, Dan Forbes, or call if you have questions about our Bradenton, Florida real estate market at 941-746-0505; toll free 877-646-8326.  Visit my web site BradentonFloridaRealEstate.com 

When I started real estate in 1994 our local MLS book was printed once a month.  The internet was in its infancy with no real estate listings available to consumers.

When you took a new listing it could be a month before other agents in your MLS even knew about it and even longer then for buyers to find out about. 

So, several things happened.

1. Real Estate offices conducted once a week “caravans” so the office agents could see the new listings.
2. Some Boards conducted “caravans” so agents could see the new listings of other offices.
3. Buyers drove around looking for yard signs.
4. Agents held Open Houses to expose their new listing to buyers.

Open Houses as an effective method for finding your next home was somewhat successful.  It made sense to visit Open Houses in 1994.

Fast forward to 2007.  Things have changed:

1. Buyers have access to the MLS through agent websites and have INSTANT access to new listings. Try BradentonFloridaRealEstate.com
2. Agents set up buyers on email plans that INSTANTLY send them new listings as they are entered into the MLS.  Try our VIP HomeFinder Program
3. Buyers can see multiple photos of the home for sale.
4. Buyers can walk through the home virtually using their computer in the comfort of their own home. See BradentonRealEstate.com
5. Agents no longer have to hold Open Houses for buyers to find the home for sale.
6. 1000’s of web sites are available for buyers to find homes for sale.

The most recent NAR (National Association of Realtors) Survey of Home Buyers reveals how buyers first learn about the house they purchse:

• 36 % their agent found the house for them
• 24% the buyer found the house on the internet
• 15% found the house by the yard sign
• 8% through a friend, or neighbor
• 5% print or newspaper ad
• 3% directly from the seller
• 1% homebook or magazine
• <1%  Buyers are no longer finding the house they purchase by attending an open house.

NAR President, Thomas Stevens, says of the survey, “The real estate industry today bears little resemblance to the way we did business 10 years ago. It is hard to find another industry that has adopted technology so readily to its customers.”

If you are still visiting Open Houses, you are using old methods that just don’t work today. 

The BEST way to find a home is to work with a great REALTOR (like me) and to use my web sites. 

Please contact me, Dan Forbes, or call if you have questions about our Bradenton, Florida real estate market at 941-746-0505; toll free 877-646-8326.  Visit my web site BradentonFloridaRealEstate.com 

I am taking a short sale listing this week that bears a cautionary tale.  It seems that this novice investor was invited to an “investing seminar.”  There she met a fast-talking investor who had an offer too good to be true.

He offered to sell her one of the homes in his portfolio.  He would assist her in getting a mortgage, in her name, and he would find and manage the tenant.  At the end of 5 years they would sell the house and split the profits.  Sounds good, right?

However, here is what he did:

• He inflated the price of the house and took this investor to the cleaners when he sold her the house.
• He put lousy tenants in the house.  They wrecked it.
• He made only a couple of mortgage payments and then stopped making payments.
• He left the investor with a possible foreclosure in her future.

He still lives in the area and is now “helping” people who are facing foreclosure.  So, be careful of the deals you do and who you do with with.

Please contact me, Dan Forbes, or call if you have questions about our Bradenton, Florida real estate market at 941-746-0505; toll free 877-646-8326.  Visit my web site BradentonFloridaRealEstate.com  

One important factor in successful short sale negotiations is having your paperwork in order.  From the very beginning I use checklists and systems to make sure we are in a strong negotiation position.

As the file is created I use a “Short Sale Info Sheet” to record necessary information and check off the documents as they are collected from the seller. 

__   Lender #1 Short Sale Package List: ______________________________

__   Lender #2 Short Sale Package List: ______________________________

__  1. Most recent mortgage statement or coupon
__  2. Copy of any letters you have received from your lender regarding delinquency
__  3. Current proof of income (two recent pay stubs from each person on the mortgage)
__  4. Two most recent tax returns (1040 Form, only first two pages)
__  5. Two most recent bank statements (all accounts: checking, savings, etc.)
__  6. Freddie Mac Borrower Financial Information form or one provided by your lender.
__  7. Handwritten Hardship Letter
__  8. Listing Agreement

__  9. Signed Sales Contract

__  10. Estimated HUD -1

Here’s the form: Short Sale Info SheetIf you are fearful of foreclosure, a short sale may be your solution.

Please contact me, Dan Forbes, or call if you have questions about our Bradenton, Florida real estate market at 941-746-0505; toll free 877-646-8326.  Visit my web site BradentonFloridaRealEstate.com  

A local real estate company in our Bradenton, Florida real estate market recently ran a special Open House promotion. They enlisted 100 listing clients to agree to lower their asking price by 10 percent for a BIG one day Open House event. 

They ran huge newspaper ads promoting the Red Tag Open House event. Every listing was featured in the paper as offering a special, one day only, 10 percent discount. Our market was abuzz with the hype!

The event was held, and the results are in. 

Ta, Da…..

Visitors: 250 visitors attended the 100 Open Houses.
That’s an average of 2.5 visitors per Open House.  Those of you who hold Open Houses know that usually it’s the neighbors who always show up. I don’t think 2.5 visitors is quite what I call a success.

Sales: Zero, zip, nada, not a one.
I can’t think of a better demonstration of the uselessness of Open Houses.  In my opinion, the buyers have spoken loud and clear, “We don’t need no stinkin’ open houses.” Nail driven. Coffin closed. Let’s move on.

(Copyright © 2007 By Dan Forbes, All Rights Reserved.)

Please contact me, Dan Forbes, or call if you have questions about or our Bradenton, Florida real estate market at 941-746-0505; toll free 877-646-8326.  Visit my web site BradentonFloridaRealEstate.com