But worth your while, I guarantee you.  The Troia Team from Boulder Colorado is writing so much on the subject lately because IT IS the subject lately.  Real estate short sales are everywhere and the numerous listings are partially due to the Home Affordable Foreclosure Alternatives Program; go ahead, call it HAFA. 

The information is non-ending.  You can’t write enough about short sales.  As we discussed before, having a knowledgeable Realtor is most important.  One who can walk you through the process.  If I were going through a short sale, here’s what I would want to know from my real estate agent.

What’s first? As a seller, you need to thumb through all those mortgage papers and give your agent the most information possible.  Lender’s name, number, address and your account number.  Social security card number, payment history, and recent balance statement/bill are also helpful.  It’s not always easy to contact the appropriate person at the bank but it’s not impossible.  One of the other pertinent pieces of information I learned at a short sale class is BE NICE.  Courtesy will get you a long way.  Many of the employees working on short sales at the bank are overworked and underpaid.  Ticking them off will get you nowhere fast.

A letter of authorization is necessary so create it before the lender asks.  Your real estate agent will help you write a letter giving the lender permission to talk with those specific interested parties about your loan.  Include your property address, loan reference number, your name, the date, and your agent’s name and contact information.

Conduct a preliminary net sheet or estimated closing statement.  Again, your agent can help and so can the lawyer (which I always advise one).  This will include: 1) sale price approximation, 2) unpaid loan balances, 3) title costs, lawyer fees, lender fees, 4) late fees, and 5) real estate commissions.

The hardship letter.  Be expecting a blog with sample letters.  It’s exactly how it sounds.  Explain why you need a short sale.  What is happening to create financial distress in your life.  Divorce?  Job loss?  BE HONEST!  Dishonesty may get you rejected by the lender and besides, it’s bad karma.

Proof of income and assets.  Again, BE HONEST.  Name all your assets, saving accounts, money market accounts, 401k, any other stocks/bonds, other real estate, income and copies of bank statements.  It’s possible you may not qualify for a short sale if you have enough assets to cover unpaid debt.

Next, your comparative market analysis prepared by your real estate agent which includes active listings on the market, pending sales and solds from the last six months.

Lastly, the lender loves to see the purchase agreement (offer) and listing contract.  You’ll have a listing contract with your real estate agent when you begin and after your home has been on the market, a buyer (or several) will come along and make offers.  Accept one and have it ready to submit with the above information.  Lenders usually try to renegotiate offers and commissions and refuse to pay for inspection items.

It may seem like a lot of documentation but that is why expertise representation is so essential.  The Troia Team can help with these forms and the entire short sale process.  Register with our site and receive updated real estate news and let me know if you have any questions regarding short sales!

Every year on Memorial Day in Boulder CO there is a race, which started as a modest local show, but has turned into a international phenomena.  Yes, I am referring to the Bolder Boulder.  2010 it is on May 31, and with close to 50,000 racers last year, we are expecting another great race this year. The Bolder Boulder 10K run has gained in popularity because of the range of runners allowed to enter. Run, jog, walk it, all levels are welcome.  You will see some of best long distance runners in the world and you also see the brave walker who is entering their first 10K.  The pace is not important, only the experience.  Unless you are one of those world class runners, in which case I say to you, “pace is everything.”

The race starts in Folsom Stadium, home to the CU buffalos, and is ran around a loop which heads north and south along Folsom rd.  Cars are blocked for the masses of people who have come to watch.  You should, at least come cheer on the racers this year, if you are not ready to enter.  While here check out Pearl Street and all the shops and restaurants it has to offer.  Cool off in Boulder Creek to get out of the heat or head to The Hill for a bite to eat.  There is plenty to do before during and after the race here in our unique town.

If you are interested in joining the race there is some training you can do.  As simple as eating a little better and running a little more.  However, for a more comprehensive training guide check out this video a Boulder local made.   Remember train as little or as much as you want to.  There is one goal for most of us, just to finish.  Come check it out or finish the race this Memorial Day, Boulder’s Bolder 10K run will not let you down.  

What is it when a seller’s lender agrees to accept a lower amount for a property than is owed? 

Yes…a short sale. 

This is big real estate news in Boulder Colorado and throughout the country.  If the owner of a home has an outstanding loan/lien that is greater than the value of the home and they are in financial distress (late on mortgage payments), then a short sale is an option other than foreclosure.  Click here to read all about  it.

What you should know…

Finding a Realtor, like the Troia Team, who specializes in the short sale process is crucial.    A short sale is not the best option for everyone.  Also, there is a stack of required documentation and forms, such as the financial hardship letter and financial statement, from the lender.  Realtors should be certified in listing short sales (as we are) because it can be complex as well as emotional.

Getting an answer from the bank can take awhile depending on who the lender is and how far along they are in the process.  Sometimes they will hold several offers for months, then say no (this would be a worse case scenario).  Usually, you’ll get an answer between 2 weeks to 3 months.  The bailout may help this as the government tries to help homes from going to foreclosure.  It will help accommodate the short sale process and time-lines will be faster.

Short sale homes are usually sold as is.  The home may be partially remodelled, then left incomplete due to the financial nature of the situation.  Inspection items are usually not addressed by the bank and many fees like title insurance are paid by the buyer.

Do you meet any qualifications for a short sale?  These include:

1.  Can’t get your home sold in the current market because the mortgage balance is greater than the market value of your home.

2. You are behind on your mortgage payment and facing default or foreclosure.  You know that you can’t afford your mortgage any longer.

3. Facing financial hardship such as job loss, death or illness in the family, need to relocate, divorce, and/or inquiring more bills.

4. Are you depleting your savings to pay your mortgage?

5. Is selling your home an absolute necessity?!?!

Most of the time, a lender would rather short sale than go to foreclosure and the government is now on board.  Call us today to get the support you need and the expertise of short sale listing agents.  We can help.

 “Save Spork “  I received an email last week with a link that you were suppose to click  ://www.ipetitions.com/petition/savespork/ .  Spork , a 10 year old miniature Dachshund was taken to Lafayette’s Jasper Animal Hospital to have a bad tooth extracted.   Spork is now up on “vicious animal charges” for biting a veterinarian technician.   The owner said that dog was just in pain and scared, and so far the family has spent over $6000 on fees involved with the ticket.  The courts will be reviewing the case in April 2010 and will decide if the dog should be euthanized or not.  

Thousands of people are rallying around Spork and some are not.  Today, in the local Boulder Camera paper, someone made a funny comment on the story about Spork and said  “the moral of the story is to never trust a dog named after a sharp eating utensil” !

The “Save Spork”  Facebook page has drawn more than 9,000 members, blog posts, mainly in support of Spork, also are proliferating. Click here for more information on pet ownershipo vs pet guardianship and other animal law issues in Colorado.  

Lafayette,   once a part of the Colorado coal-mining boom, is redefining it’s working class roots and rich ethnic diversity as a thriving community with cultural and commercial centers found in the revitalized Old Town District.  As a real estate agent in Boulder Colorado,  trends are showing for the surrounding Boulder areas like Lafayette, inventory coming down and prices up just a little.    For more info on home prices in this area check out our website link:  http://blogtherockies.com/local-stats/.  and visit the City of Lafayette City website: http://cityoflafayette.com/ .   We look forward to hearing your comments about Spork the Dog, and don’t forget to check out our Troia Team blog about the Mork and Mindy house.   Ah, come on…..I think you can admit that you really liked Mork from Ork ! 

A short sale is when the real estate sale proceeds fall short of the balanced owed on the property’s loan.  This happens when the borrower is unable to pay their  property’s mortgage.  Instead of penalizing the mortgagor, the lender agrees to sell the property at a moderate loss.   This is an advantage to both parties as  it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the borrowers. Clients in Boulder ask this all the time and no,  this may not release the mortgagor from their deficiency. Neither foreclosure nor a short sale leaves you free and clear.

Definition made simple of foreclosure: when the borrower is legally removed as owner to their home.  Ownership is terminated due to late payments (default).  The property is sold at a public auction.  Proceeds go to payment of the balance.  When the bank buys the property at the auction, it is then put on the market.

If it’s right for your situation, a short sale would occur before the home goes to auction.  A Realtor lists the home in hopes of selling and presenting an offer to the bank before the sale date.  This date can be extended while the home is listed.  Two basic scenarios: 1) Home receives an offer and the bank accepts = no foreclosure. 2) Property receives no offers or the bank rejects offers = home goes to auction & foreclosure.

CREDIT SCORE

Foreclosure: Can stay on your record for up to 10 years and drastically reduces your credit score 300 points!  vs. Short Sale:  Don’t plan on buying another home in Boulder County (without cash) for two years and the score is lowered about 50 points.

CREDIT HISTORY

Foreclosure: Recorded on public records.  vs. Short Sale: Recorded by mortgage company as “paid”, “paid as negotiated”, “settled in full”.

CURRENT EMPLOYMENT

Foreclosure: Because it is on your credit report, it’s possible for employers to check the information and terminate employment as well.  vs. Short Sale: Not on your report – no indication of loss – no employment termination.

FUTURE EMPLOYMENT

Same as above.  Forclosures on your record are public information to future employers; like a DUI.  They may use their discretion. vs. Short Sale: no record = employers can’t know.

DEFICIENCY JUDGEMENT

Foreclosure: the bank has the right to pursue the deficiency of the loan.  vs. Short Sale: It is possible to negotiate with the lender to give up the right to pursue the deficiency.

DEFICIENCY AMOUNT

Foreclosure: If the home does not sale at auction, it will go through the REO bank system.  This results in a prolonged sale process, resulting in possible larger deficiencies. vs. Short Sale: Because they can be sold at near market value, the deficiency could be forgiven.

Why is this information important? 

For several reasons: Being more conscientious is the way to be.  It’s the right choice.  The eco evolution is not only taking over Boulder but it’s blossoming throughout the world.  We drive Priuses, shop locally, and remodel with the consideration of the environment. 

You’re not only saving mother earth but yourself as well; indoor contamination causes health problems and the community is becoming more aware of its harmful risks. 

 It’s really not that more expensive to do a earth loving remodel and it will positively increase the value of your real estate.  Buyers are looking for those green qualities in a home so here are the basics. 

Part One of “What is an eco friendly renovation?” covered flooring because it’s one of the most important investments in a remodel which can tie the whole look together.  There are so many options, I think you’d be surprised.  Part Two is going to cover everything else -from insultation to paint.

Water efficiency

Why Build An Eco House?states that one of the most popular eco friendly building trends is water efficiency. Techniques used to conserve water are dual plumbing, low flush toilets, low flow shower heads, grey water systems that use rain water, and other eco friendly kitchen trends. 

Don’t forget about the Water Heater Timer, digital programmable thermostat, and Tankless Water Heaters.  These not only save on energy, they SAVE you MONEY!!!!   Also, pertinant to this catergory…… Xeriscaping: xerogardening refers to landscaping and gardening in ways that reduce or eliminate the need for supplemental irrigation. It is promoted in areas that do not have easily accessible supplies of fresh water, and is gaining acceptance in other areas as climate patterns shift.

Insulation

Very important and a great way to begin after demolition because when it comes to keeping heating and cooling costs in check, insulation is the first line of defense. Sierra Club agrees and adds: in the winter, heated air moves from living spaces to attics, garages, and the great outdoors making heating systems fire up to replace all that lost heat. In the summer, air conditioners kick on as heat moves from the outside in. Insulation in the attic, exterior walls, and floors can help resist this heat flow, making homes more comfortable and slashing energy bills and pollution. HA! Environmentally friendly!   Homes built today are usually well insulated, but many older homes–even those built as little as ten years ago–can benefit from added insulation.  Types include cotton, recycled, and non-toxic duct work.

Painting

According to the EPA, the concentration of pollutants inside your home is several times higher than what you’ll find outside, due to the lack of ventilation in rooms compared to the open spaciousness of the great outdoors.  Without proper ventilation, airborne chemicals collect indoors and eventually cause damage to our bodies.  Headaches, dizziness, fatigue, asthma, cancer, and heart disease are all potential side effects of indoor air pollution.  Although the contamination cannot be attributed to any single source, paint and paint-related chemicals play a significant role inside a typical home. 

The airborne chemicals released during painting, after the paint is dry, and as paint is removed, fall into a category of pollutants known as volatile organic compounds (VOCs)—potentially carcinogenic carbon-based chemicals that evaporate easily and contribute to indoor air pollution.  Harmful compounds in the VOC category range from formaldehyde to pesticides to cleaning chemicals.  They can be up to ten times more concentrated indoors than outdoors, in both rural and industrial locations.  However, VOCscontribute significantly to air pollution out of doors as well.  VOCs are released in the highest concentrations during paint application, but most paint will continue to emit harmful fumes for years afterwards.

You’ve got to be convinced by now.  Remodelling with the earth in mind will also increase the value of your real estate.  It’s healthy and trendy.  To learn even more about buying and selling green property, let us know.

The fallowing are all definition of a buyers’ market: 1) When the demand for property is less than supply so the advantages shift to the buyer.  2) A market which has more sellers than buyers. Low prices result from this excess of supply over demand.  Also soft market or opposite of seller’s market. 3) When a buyers’ market exists in commodities, the buyer is able to be selective in purchasing contracts, as there are many individuals wishing to sell. Furthermore, these buyers will generally be able to purchase contracts at lower prices than those that were previously prevalent. 

Basically the key elements of a buyers’ market are these: lots of inventory (or homes for sale) and buyers willing to buy them up at competitive prices.  That being said, Boulder is a buyer’s market.

One good reason for Boulder’s buyers’ market is the tax credit. With the tax credit extension about to expire, offered to not only first time home buyers but move up buyers as well, now is a good time to take advantage of this offer. The deadline was moved from November 30, 2009 to April 30, 2010, with any contracts closing before July 1st.  Close before then and guarantee yourself some money back from uncle Sam at the closing table.  Weather that is $8,000 for first time buyers or $6,500 for move up buyers, this offer is one that can’t be wasted.  There is a household income cap and maximum purchase price buyers must obey in order to qualify. HERE for more details.

What if I told you I could save you close to $4,000 if you were to buy a home today instead of down the road? You could use that to pay for this years’ heating, electric, cell, and cable bills. “How?”, is what I hoped you would say.

First off I would refer you to Coldwell Banker mortgage.  Here our loan agents can offer you ZERO closing costs at a value of $1,500.  Now comes the big deal, locking in a rate today that is better than a rate tomorrow.  The life of interest rates is this: a gradual increase over a long period of time and then a big decrease all of a sudden.  With rates once again gradually increasing, you can count on tomorrow’s rate being worse than today’s.  On a $300,000 loan, if you lock in a rate today at 5 3/4 and tomorrow it goes to 6 1/4, which it eventually will, you will be saving $200 per month.  On 360 payments over 30 years that is $72,000 dollars you will save. More immediately it is $2,400 per year.  That plus the money CB mortgage will save you on closing costs puts you in the green $3,900.00.  Not bad for buying sooner than later.  Also remember, that is not including the tax credit if you qualify for it.

If you are a buyer, get out there and take advantage of this market.  The Troia team has agents specializing in all sorts of homes in all sorts of areas.  Give us a call and find your dream home.

I’m sure you heard the good news  by now,  Boulder was rated the happiest and healthiest place to live in the United States.  This was according to a Gallup Poll and the Colorado Daily reports:

The new massive study of Americans’ attitudes and lifestyles concludes that Boulder is the prime U.S. location for general well-being and quality of life.

“The fact that Boulder is up there makes a lot of sense when you’re looking at what we know of happiness,” said Tim Wadsworth, an assistant professor of sociology at the University of Colorado. “For example, health is huge, and Boulder is known for its high level of health.”

The Gallup-Healthways Well-Being Index asked more than 353,00 Americans in 2009 about their jobs, finances, physical health, emotional state and communities when calculating the rankings.  Click here to know more.

Boulder ranked No. 1 in overall well-being out of 162 large and medium-sized cities. It also topped the list in work experience, rated No. 4 in healthy behaviors, No. 7 in physical health, No. 10 in access to basic needs for a healthy life and No. 27 in emotional health.

The top 10 happiest cities are mostly in the West — including in California, Utah and Hawaii.

Huntington, W. Va., and Fort Smith, Ark., ranked the lowest in overall well-being.

Wadsworth said he doesn’t know how seriously to take polls that ask people to subjectively report whether they’re happy. And if people genuinely are happy and healthy, Wadsworth said, it’s difficult to know whether to credit Boulder.

“Is it that living in Boulder makes people happy, or do happy people make life decisions to move to Boulder?” Wadsworth said.

Boulder does, however, have a lot of the attributes that are generally considered essential to a happy community. For example, many residents are educated and affluent. Younger and older people seem to be happier, Wadsworth said, and Boulder has a lot of students and retirees who fit into those groups.

“And weather matters,” Wadsworth said. “That’s one of the reasons I moved here.”

Good weather and proximity to trails, open space and the mountains make outdoor recreation easy, he said. And a lot of Boulder residents work either at CU, one of the government-run research institutions or for themselves, which allows them to work somewhat independently and have more flexibility in their daily schedules, Wadsworth said.

CU sophomore Katie Miller, 20, said she’s much happier living in Boulder than in her Connecticut hometown. Where she comes from, Miller said, people are much more stressed.

“Everyone works all day in New York — they don’t do anything else,” said Miller, who spent the weekend skiing at Breckenridge. “I don’t know if anyone works here.”

Marilyn Johnson, 60, said she’s lived in Boulder for 35 years and wouldn’t live anywhere else. With a home near Chautauqua Park, she walks her dogs daily in the foothills. Over the weekend, she went to the Boulder International Film Festival. Her family started a natural food business.

“It’s very easy to eat healthy here,” Johnson said Monday while shopping at Whole Foods. “And there’s just so much to do.”

If happy hour is an indication of the level of happiness in Boulder, Henry Pariser said the community is in good spirits. Pariser, kitchen manager at Southern Sun, said his restaurant has two happy hours — one at 4 p.m. and one at 10 p.m.

“This place fills up,” he said. “There are people waiting on both sides of the restaurant to get a seat.”

Pariser said he just moved to Boulder three months ago after living in Chicago, Napa Valley and Las Vegas, and he’s found his favorite spot.

“You wake up every morning and look at the Rocky Mountains – how could you not be happy?” he said.

Come and buy some real estate in Boulder,apparently it’s place to be.

  So you are in the market for a HUD home.  What is HUD, where do I find the, how do I get one??????  This can overwhelm you and may seem confusing but trust me it’s not. 

Confused? Don't Be

If a loan insured by the Federal Housing Administration or FHA goes in default, the FHA takes certain steps to collect on their loan.  This may result in the lender taking possession of collateral real estate. If this happens the lender may submit a claim against the FHA insurance fund and convey ownership to the United States Department of Housing and Urban Development or HUD.  HUD then in turn lists the property at market value and sells it as fast as possible.  Click this link for more info.  This is the exciting part.

Anyone can buy a HUD home, as long as they have an insured loan or are paying with cash.  To go and look at these homes call a local realtor who has NAID membership and a HUD key to get you into the home.  COLORADO REALTORS WHO WANT TO APPLY FOR A HUD KEY CLICK HERE. Just ask your realtor for details.  After seeing the home and deciding you want to make an offer on it consider yourself “in auction”, only electronically.  Your realtor will make an electronic bid for you within the bidding time frame.  Have your HUD contract 9548 (1/99) in front of you and get on the Internet.  Along with some basic buyer and broker information, this is all you will need to make your electronic bid.

If your bid is accepted you will know the day after the bidding stops by 4 p.m. eastern standard time.  It is now time to get your signed sales contract, lender’s qualification letter, and any addendas signed and delivered to the MCB headquarters in California.  www.mcbreo.com for details.  Get all these signed and taken care of before your submit a bid so you will be ready to send them in when your bid is accepted.  An escrow will be set up to take care of any issues the HUD home may have.  Such as: plumbing, heating, electrical, foundation……..Bad news these need to be fixed out of your pocket, good news you can use your FHA loan to help pay for them. 

Wheather you are first time home buyer or investor, get out there and find your HUD home today.  Call someone at the Troia Team for more details on this process.  You and your fam could be in a HUD home very soon.

Just what defines a home remodel going eco friendly?  It’s important to know if you are a home buyer and a home seller.

If you are a home buyer then this will help you know what to look for when house shopping.  Sellers wanting to increase the value of their home and attract more buyers, need to be aware of what the new earth loving trends are.

Being a real estate expert in Boulder Colorado and Boulder County, we are witnessing a revolution in green building.  This is not a passing trend, but in my opinion, a change in how we build and remodel.

This blog is dedicated entirely to flooring! Yes, aren’t you lucky?  Eco flooring options are numerous and fun to talk about so let’s get started!

From my experience, an eco friendly renovation would be defined as any home improvement that uses sustainable and natural materials.  Supplies were bought locally and independently owned contractors were hired.  Recycled items are used as much as possible . Disposal of items should also be earth friendly; recycling old materials and reselling them as well.  For starters, choosing to remodel instead of building a bigger home somewhere else, is a great start.  That in itself is environmentally friendly.  I see more and more people every day and all around the world becoming more conscientious about the safety of their home and how the earth was considered in its reconstruction.

Floors - a huge selling point in a home.  Do you prefer carpet, tile, or hardwood?  Let’s start with carpets. One brand of green carpeting is called Smartstrand and its made from corn sugar!  Can you believe it?  And it takes 30% less energy to produce than the old nylon carpeting.

Other carpets to consider are made from recycled bottles.  I love it!  Listen to this, according to Mohawk Flooring, they developed a manufacturing process to turn PET containers into carpet. The making of everSTRAND™ starts out by sorting PET bottles and then grinding them into small chips. The cleaned chips are then melted down and extruded into fiber before being spun into carpet yarn. Mohawk also uses the labels and caps from the PET containers to make the carpet core, the roll that carpet is wrapped around on showroom floors. According to their website, since 1999 they have recycled over 17 billion plastic bottles and that’s saved landfills 1 billion pounds of waste.

And what about that cork?  It’s one of my favorite choices.  Surely everyone knows about this ecofriendly flooring by now.  But in case you didn’t know, it’s harvested from a cork tree grown along the Mediterranean.  It’s harvested on a living tree, which is not harmed.  It’s not only a conscientious choice but it’s texture is unique and trendy looking.  Don’t worry….cork comes in over 50 colors and over 5 textures, you won’t compromise style.  Because cork is considered a renewable and sustainable natural resource, they can run a little pricey and their installed cost per square foot can be close to a good quality ceramic tile floor.  To me, the cost is worth it.  You’ll maximize the value of your home with these floors, be the envy of the neighbors, and mother earth will love you.

Next is bamboo.  Yes, the grass that pandas love.  There is enough for everybody because it grows so darn fast.  And, like cork, it can be harvested without harming the roots.  I think bamboo is beautiful and I love when people use it for cabinets as well.  Let the picture speak for itself.

Not so commonly heard of and the latest trend in flooring is eucalyptus.  According to durodesign, plantation-grown eucalyptus comes from sustainable, managed and PEFC-certified European forests. Eucalyptus has a smooth and refined grain with the depth and shimmer of an exotic wood and eucalyptus is 65% harder than white oak.  Sounds fascinating.  HGTV continues to explain that eucalyptus has the appearance of a fine tropical mahogany, yet it has all the “green” benefits of rapidly renewable hardwood. The eucalyptus tree is amazingly renewable and fast growing. Ready to harvest in as little as 14 to 16 years, the eucalyptus tree can grow to 14 inches in diameter and 120 feet tall in that short period of time.

Here are some excellent ideas to get you started.  And if you’re buying or selling a home and would like to know more.