Compliments Of: North County Home Source. North County Home Source. Madeleine Lavelle, ABR, CSP, SFR, CHS

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Compliments Of:

Madeleine Lavelle,

Madeleine Lavelle, Realtor

Realtor

®®®®

_{, ABR, CSP, SFR, CHS}

North County Home Source

Keller Williams Realty

6005 Hidden Valley Road #200

Carlsbad, CA 92011

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It’s All About You

My real estate business has been built around one guiding principle: It's all about you.

•Your needsYour needsYour needsYour needs

•Your dreamsYour dreamsYour dreamsYour dreams

•Your concernsYour concernsYour concernsYour concerns

•Your questionsYour questionsYour questionsYour questions

•Your financesYour financesYour financesYour finances

•Your timeYour timeYour timeYour time

•Your lifeYour lifeYour lifeYour life

My focus is on your complete satisfaction. In fact, I will work to get the job done so well, you will want to tell My focus is on your complete satisfaction. In fact, I will work to get the job done so well, you will want to tell your friends and associates about it. Maybe that's why over 50% of my business comes from repeat

customers and referrals.

Excellent service speaks for itself.

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The Home Buying Process

There are a lot of details to be handled when purchasing a home.

This overview is designed to summarize the various steps along the path of qualifying, finding and buying a home. It is my job to streamline the steps for you, ensuring everything is completed according to plan. 1. Consultation to analyze your specific needs and wishes

1. Consultation to analyze your specific needs and wishes 1. Consultation to analyze your specific needs and wishes 1. Consultation to analyze your specific needs and wishes

your lifestyle interview, your home wish list, the neighborhood of your dreams 2. Financial pre

2. Financial pre 2. Financial pre

2. Financial pre----qualification or prequalification or prequalification or prequalification or pre----approvalapprovalapprovalapproval the mortgage and loan process

3. Select and view properties 3. Select and view properties 3. Select and view properties 3. Select and view properties

the home tour, frequently asked questions 4. Write an offer to purchase

4. Write an offer to purchase 4. Write an offer to purchase 4. Write an offer to purchase making an offer

5. Negotiate the purchase offer 5. Negotiate the purchase offer 5. Negotiate the purchase offer 5. Negotiate the purchase offer

making an offer making an offer

6. Final mortgage application 6. Final mortgage application 6. Final mortgage application 6. Final mortgage application

the mortgage and loan process 7. Underwriting

7. Underwriting 7. Underwriting 7. Underwriting

the mortgage and loan process 8. Loan approval

8. Loan approval 8. Loan approval 8. Loan approval

the mortgage and loan process 9. Title company

9. Title company 9. Title company 9. Title company

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The Mortgage And Loan Process

Funding your home purchase

1. Financial pre 1. Financial pre 1. Financial pre

1. Financial pre----approvalapprovalapprovalapproval Application & interview

Buyer provides pertinent documentation, including verification of employment Credit report is requested

Appraisal scheduled for current home owned, if any 2. Underwriting

2. Underwriting 2. Underwriting 2. Underwriting

Loan package is submitted to underwriter for approval 3. Loan Approval

3. Loan Approval 3. Loan Approval 3. Loan Approval

Parties are notified of approval

Loan documents are completed and sent to title 4. Title Company

4. Title Company 4. Title Company 4. Title Company 4. Title Company 4. Title Company 4. Title Company 4. Title Company

Title exam, insurance and title survey conducted Borrowers come in for final signatures

5. Funding 5. Funding 5. Funding 5. Funding

Lender reviews the loan package Funds are transferred by wire Why pre

Why pre Why pre

Why pre----approve?approve?approve?approve?

We recommend our buyers get pre-approved before beginning their home search. Knowing exactly how much you can comfortably spend on a home reduces the potential frustration of looking at homes Below or above your price range.

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Your Home Search

I love helping buyers find their dream home. That's why I work with each client individually, taking the time to understand their unique lifestyles, needs and wishes. This is about more than a certain number of bedrooms or a particular zip code. This is about your life. And it's important to me.

When you work with me, you get:

•A knowledgeable and professional REALTOR®A knowledgeable and professional REALTOR®A knowledgeable and professional REALTOR®A knowledgeable and professional REALTOR® •A Certified Buyer Representative, ABRA Certified Buyer Representative, ABRA Certified Buyer Representative, ABRA Certified Buyer Representative, ABR

•A Certified HAFA Specialist, CHSA Certified HAFA Specialist, CHSA Certified HAFA Specialist, CHSA Certified HAFA Specialist, CHS

•A Certified Short Sale and Foreclosure Resource Specialist, SFRA Certified Short Sale and Foreclosure Resource Specialist, SFRA Certified Short Sale and Foreclosure Resource Specialist, SFRA Certified Short Sale and Foreclosure Resource Specialist, SFR •A committed ally to negotiate on your behalfA committed ally to negotiate on your behalfA committed ally to negotiate on your behalfA committed ally to negotiate on your behalf

•A team of professionals working on your behalfA team of professionals working on your behalfA team of professionals working on your behalfA team of professionals working on your behalf

•The backing of a trusted company, Keller Williams Realty The backing of a trusted company, Keller Williams Realty The backing of a trusted company, Keller Williams Realty The backing of a trusted company, Keller Williams Realty

I have the systems in place to streamline the home buying process for you. As part of my service, I will commit to helping you with your home search by:

•Previewing homes in advance on your behalfPreviewing homes in advance on your behalfPreviewing homes in advance on your behalfPreviewing homes in advance on your behalf

•Personally touring homes and neighborhoods with youPersonally touring homes and neighborhoods with youPersonally touring homes and neighborhoods with youPersonally touring homes and neighborhoods with you •Keeping you informed of new homes on the marketKeeping you informed of new homes on the marketKeeping you informed of new homes on the marketKeeping you informed of new homes on the market •Helping you preview homes on the InternetHelping you preview homes on the InternetHelping you preview homes on the InternetHelping you preview homes on the Internet

•Advising you of other homes that have sold and for how muchAdvising you of other homes that have sold and for how muchAdvising you of other homes that have sold and for how muchAdvising you of other homes that have sold and for how much •Working with you until we find the home of your dreamsWorking with you until we find the home of your dreamsWorking with you until we find the home of your dreamsWorking with you until we find the home of your dreams

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1. Thou shalt not change jobs, become self-employed or quit your job.

2. Thou shalt not buy a car, truck or van (or you may be living in it)!

3. Thou shalt not use charge cards excessively or let your accounts fall behind.

4. Thou shalt not spend money you have set aside for closing.

5. Thou shalt not omit debts or liabilities from your loan application.

The Ten Commandments

The Ten Commandments When Applying For A Real Estate Loan

hen Applying For A Real Estate Loan

6. Thou shalt not buy furniture.

7. Thou shalt not originate any inquiries into your credit.

8. Thou shalt not make large deposits without first checking with your loan officer.

9. Thou shalt not change bank accounts.

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Making An Offer

Once you have found the property you want, we will write a purchase agreement. While much of the agreement is standard, there are a few areas that we can negotiate:

The Price The Price The Price The Price

What you offer on a property depends on a number of factors, including its condition, length of time on the market, buyer activity, and the urgency of the seller. While some buyers want to make a very low offer, just to see if the seller will accept, this often isn't a smart choice, because the seller may be insulted and decide not to negotiate at all.

The Move The Move The Move The Move----in Datein Datein Datein Date

If you can be flexible on the possession date, the seller will be more apt to choose your offers over others. Additional Property

Additional Property Additional Property Additional Property

Often the seller plans on leaving major appliances in the home, however, which items stay or go is often a matter of negotiation.

Typically you will not be present at the offer presentation; we will present it to the listing agent and/or seller. Typically you will not be present at the offer presentation; we will present it to the listing agent and/or seller. The seller will then do one of the following:

• Accept the offerAccept the offerAccept the offerAccept the offer • Reject the offerReject the offerReject the offerReject the offer

• Counter the offer with changesCounter the offer with changesCounter the offer with changesCounter the offer with changes

By far the most common is the counter offer. In these cases, my experience and negotiating skills become powerful in representing your best interests.

When a counter offer is presented, you and I will work together to review each specific area of the counter offer, making sure that we move forward with your goals in mind and ensuring that we negotiate the best possible price and terms on your behalf.

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Closing 101

Prepare for it

Closing day marks the end of your home buying process and the beginning of your new life! To make sure your closing goes smoothly, you should bring the following:

• A cashiers checkcashiers checkcashiers checkcashiers check for closing costs and down payment. Money can also be wiredwiredwired from your bank to wired the escrow account at least 3 days before the closing dateat least 3 days before the closing dateat least 3 days before the closing dateat least 3 days before the closing date.

• An insurance binder and paid receipt • Photo IDs

• Social security numbers • Addresses for the past 10 years

Own it

Transfer of title moves ownership of the property from the seller to you. The two events that make this happen are:

Delivery of the buyers funds (“funding”) Delivery of the buyers funds (“funding”) Delivery of the buyers funds (“funding”) Delivery of the buyers funds (“funding”) Delivery of the buyers funds (“funding”) Delivery of the buyers funds (“funding”) Delivery of the buyers funds (“funding”) Delivery of the buyers funds (“funding”)

This is the cashier’s check or wire funds provided by your lender in the amount of the loan Delivery of the deed (“recording”)

Delivery of the deed (“recording”) Delivery of the deed (“recording”) Delivery of the deed (“recording”)

A deed is the document that transfers ownership of real estate. The deed names the seller and buyer, gives a legal description of the property, and contains the notarized signatures of the seller and witnesses. Typically recording occurs a minimum of one day after funding.

At the end of closing, the deed will be taken and recorded at the county clerk’s office. It will be sent to you after processing.

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Why Keller Williams Realty

There is a reason more and more agents are making the change to Keller Williams Realty. Here's why it matters to you:

Knowledge Knowledge Knowledge Knowledge

Powerful curriculum through Keller Williams University keeps us ahead of trends, tools and advancements in the real estate industry.

Speed Speed Speed Speed

Leading-edge technology solutions accelerate our efficiency and productivity. Teamwork

Teamwork Teamwork Teamwork

Unlike other real estate companies, Keller Williams Realty was designed to reward agents for working together, to serve clients better.

Reliability Reliability Reliability Reliability

Keller Williams Realty was founded on the principles of trust and honesty, emphasizing the importance of having the integrity to do the right thing and always putting the customer’s needs importance of having the integrity to do the right thing and always putting the customer’s needs first.

Success Success Success Success

Keller Williams Realty is the fastest growing real estate company in North America. When you offer a superior level of service, the word spreads fast.

As part of the Keller Williams Realty team, I look forward to providing you with a phenomenal real estate experience!

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About Me

How am I different from other real estate agents? How am I different from other real estate agents? How am I different from other real estate agents? How am I different from other real estate agents?

As your real estate consultant I offer timely information, experience, a team of motivated professionals and a sophisticated service approach so that you can meet or exceed all of your real estate goals.

Technology Technology Technology Technology

Information regarding active real estate listings, current trends, local areas, school, etc. is all available at my website: www.NorthCountyHomeSource.com.

Expertise Expertise Expertise Expertise

I have completed numerous successful transactions throughout north and central San Diego County. Communication

Communication Communication Communication

You can reach me 7 days a week via my cell phone # 760-805-7663. I will communicate with you at the intervals you decide (daily, weekly, etc.), via phone or email, which ever is your preference. Awards/Recognition

Awards/Recognition Awards/Recognition Awards/Recognition Awards/Recognition Awards/Recognition Awards/Recognition Awards/Recognition

Accredited Buyers Representative(ABR), Certified Short Sale Professional (CSP), Short Sale and Foreclosure Resource Specialist (SFR), Certified HAFA Specialist (CHS)

Personal Personal Personal Personal

Active member of Niños Preciosos Auxiliary- Children’s Home Society of California My Commitment to You

My Commitment to You My Commitment to You My Commitment to You

• Organize and schedule your home search process.

• Discuss the benefits and drawbacks of each home in relation to your specific needs. • Provide you with on-going updates on available homes.

• Help you to compare homes and make a decision.

• Advise you on the terms and issues of the offer and fill out the purchase offer contract. • Present your offer and negotiate on your behalf.

• Coordinate and supervise the preparation of all closing documents and guide you through the closing process.

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Why Work With An Accredited Buyer Representative:

An Accredited Buyer Representative (ABR): An Accredited Buyer Representative (ABR): An Accredited Buyer Representative (ABR): An Accredited Buyer Representative (ABR):

• Has completed specific course work outlined by a national accrediting organization • Looks out specifically for the buyers’ interests

• Saves buyers’ time by finding out exactly what you are looking for in a home and showing you only the homes that best match your criteria

• Knows the areas of San Diego County and previews properties so that you do not have to

have to

• Outlines every step in the buying process and guides you step by step, beginning to end

• Instructs you on how to obtain the strongest negotiating position possible in order to be completely satisfied with your home purchase

• Has the skills necessary to protect your interests throughout the entire escrow and closing process, and negotiate for a fair price for each and every home

• Works as an exclusive agent for you with a 100% commitment to you. In turn, each buyer works exclusively with me and is 100% committed to me as your realtor consultant. Thus, eliminating any need for communicating with multiple realtors

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Frequently Asked Questions

How will you tell me about the newest homes available? How will you tell me about the newest homes available? How will you tell me about the newest homes available? How will you tell me about the newest homes available?

The Multiple Listing Service website provides up-to-date information for every home on the market. I constantly check the New on Market list so I can be on the lookout for my clients. I will get you this information right away the way that is most convenient for you, by phone and/or e-mail.

Will you inform me of homes from all real estate companies or only Keller Williams Realty? Will you inform me of homes from all real estate companies or only Keller Williams Realty? Will you inform me of homes from all real estate companies or only Keller Williams Realty? Will you inform me of homes from all real estate companies or only Keller Williams Realty?

I will keep you informed of all homes. I want to help you find your dream home, which means I need to stay on top of every home that's available in the market.

Can you help me find new construction homes? Can you help me find new construction homes? Can you help me find new construction homes? Can you help me find new construction homes?

Yes, I can work with most builders and get you the information you need to make a decision. On your first visit with the builder, I will accompany you. By using my services with a new construction home purchase, you will receive the services I offer, as well as those provided by the builder, at no additional cost.

How does for sale by owner (FSBO) work? How does for sale by owner (FSBO) work? How does for sale by owner (FSBO) work? How does for sale by owner (FSBO) work?

Homeowners trying to sell their home without agent representation are usually doing so in the hopes Homeowners trying to sell their home without agent representation are usually doing so in the hopes of saving the commission. If you see a FSBO and want the advantages of my services, let me contact the owner for you and make an appointment. Most times the homeowner will work with an agent, even though their home is not listed, since the agent is introducing a potential buyer to their property. Can we go back through our property again once an offer is made, but before possession?

Can we go back through our property again once an offer is made, but before possession? Can we go back through our property again once an offer is made, but before possession? Can we go back through our property again once an offer is made, but before possession? Usually we can notify the seller and schedule a convenient time to visit the property again. Immediately before the closing, we will schedule a final walk-through and inspection of your new home.

Once my offer is accepted, what should I do? Once my offer is accepted, what should I do? Once my offer is accepted, what should I do? Once my offer is accepted, what should I do?

Schedule a home inspection, review all disclosures and complete all research on the property so that by day 17 you feel comfortable removing all contingencies from your contract. Once all the

contingencies have been removed, then celebrate and focus on moving into your new home! You will want to schedule your move, pack items, and notify businesses of your address change. Your escrow company will give you a good faith estimate and HUD statement, which will indicate the amount you will need to bring to closing.

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Real Estate Glossary

Acceptance: Acceptance: Acceptance:

Acceptance: the date when both parties, seller and buyer, have agreed to and completed signing and/or initialing the contract.

Adjustable Rate Mortgage: Adjustable Rate Mortgage: Adjustable Rate Mortgage:

Adjustable Rate Mortgage: a mortgage that permits the lender to adjust the mortgage's interest rate periodically on the basis of changes in a specified index. Interest rates may move up or down, as market conditions change.

Amortized Loan: Amortized Loan: Amortized Loan:

Amortized Loan: a loan that is paid in equal installments during its term. Appraisal:

Appraisal: Appraisal:

Appraisal: an estimate of real estate value, usually issued to standards of FHA, VA and FHMA. Recent comparable sales in the neighborhood is the most important factor in determining value

Appreciation: Appreciation: Appreciation:

Appreciation: an increase in the value of a property due to changes in market conditions or other causes. The opposite of depreciation.

Assumable Mortgage: Assumable Mortgage: Assumable Mortgage:

Assumable Mortgage: purchaser takes ownership to real estate encumbered by an existing mortgage and assumes responsibility as the guarantor for the unpaid balance of the mortgage.

Bill of Sale: Bill of Sale: Bill of Sale:

Bill of Sale: document used to transfer title (ownership) of PERSONAL property. Cloud on Title:

Cloud on Title: Cloud on Title:

Cloud on Title: any condition that affects the clear title to real property. Consideration:

Consideration: Consideration:

Consideration: anything of value to induce another to enter into a contract, i.e., money, services, a promise. Deed:

Deed: Deed:

Deed: a written instrument, which when properly executed and delivered, conveys title to real property. Discount Points:

Discount Points: Discount Points:

Discount Points: a loan fee charged by a lender of FHA, VA or conventional loans to increase the yield on the investment. One point = 1% of the loan amount.

Easement: Easement: Easement:

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Real Estate Glossary (cont.):

Escrow Payment: Escrow Payment: Escrow Payment:

Escrow Payment: that portion of a mortgagor’s monthly payment held in trust by the lender to pay for taxes, hazard insurance and other items as they become due.

Fannie Mae: Fannie Mae: Fannie Mae:

Fannie Mae: nickname for Federal National Mortgage Corporation(FNMA), a tax-paying corporation created by congress to support the secondary mortgages insured by FHA or guaranteed by VA, as well as conventional loans.

Federal Housing Administration (FHA): Federal Housing Administration (FHA): Federal Housing Administration (FHA):

Federal Housing Administration (FHA): an agency of the U.S. Department of Housing and Urban

Development(HUD). Its main activity is the insuring of residential mortgage loans made by private lenders.

The FHA sets standards for construction and underwriting but does not lend money or plan or construct housing.

FHA Insured Mortgage: FHA Insured Mortgage: FHA Insured Mortgage:

FHA Insured Mortgage: a mortgage under which the Federal Housing Administrationinsures loans made, according to its regulations.

Fixed Rate Mortgage: Fixed Rate Mortgage: Fixed Rate Mortgage:

Fixed Rate Mortgage: a loan that fixes the interest rate at a prescribed rate for the duration of the loan. Foreclosure:

Foreclosure: Foreclosure:

Foreclosure: procedure whereby property pledged as security for a debt is sold to pay the debt in the event Foreclosure:

Foreclosure: Foreclosure:

Foreclosure: procedure whereby property pledged as security for a debt is sold to pay the debt in the event of default.

Freddie Mac: Freddie Mac: Freddie Mac:

Freddie Mac: nickname for Federal Home Loan Mortgage Corporation(FHLMC), a federally controlled and operated corporation to support the secondary mortgage market. It purchases and sells residential

conventional home mortgages. Graduated Payment Mortgage: Graduated Payment Mortgage: Graduated Payment Mortgage:

Graduated Payment Mortgage: any loan where the borrower pays a portion of the interest due each month during the first few years of the loan. The payment increases gradually during the first few years to the amount necessary to fully amortize the loan during its life.

Lease Purchase Agreement: Lease Purchase Agreement: Lease Purchase Agreement:

Lease Purchase Agreement: buyer makes a deposit for future purchases of a property with the right to lease property in the interim.

Lease with Option: Lease with Option: Lease with Option:

Lease with Option: a contract, which gives one the right to lease property at a certain sum with the option to purchase at a future date.

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Mortgage: Mortgage: Mortgage:

Mortgage: a legal document that pledges a property to the lender as security for payment of a debt. Mortgage Insurance Premium (MIP):

Mortgage Insurance Premium (MIP): Mortgage Insurance Premium (MIP):

Mortgage Insurance Premium (MIP): the amount paid by a mortgagor for mortgage insurance. This insurance protects the investor from possible loss in the event of a borrower’s default on a loan. Note:

Note: Note:

Note: a written promise to pay a certain amount of money. Origination Fee: Origination Fee: Origination Fee: a fee paid to a lender for Origination Fee: services provided when granting a loan, usually a percentage of the face amount of the loan.

Private Mortgage Insurance (PMI): Private Mortgage Insurance (PMI): Private Mortgage Insurance (PMI):

Private Mortgage Insurance (PMI): see Mortgage Insurance Premium. Second Mortgage / Second Deed of Trust / Junior Mortgage / Junior Lien: Second Mortgage / Second Deed of Trust / Junior Mortgage / Junior Lien: Second Mortgage / Second Deed of Trust / Junior Mortgage / Junior Lien:

Second Mortgage / Second Deed of Trust / Junior Mortgage / Junior Lien: an additional loan imposed on a property with a first mortgage. Generally, a higher interest rate and shorter term than a “first” mortgage. Settlement Statement (HUD

Settlement Statement (HUD Settlement Statement (HUD

Settlement Statement (HUD----1): 1): 1): a financial statement rendered to the buyer and seller at the time of transfer 1): of ownership, giving an account of all funds received or expended.

Severalty Ownership: Severalty Ownership: Severalty Ownership:

Severalty Ownership: ownership by one person only. Sole ownership.

Real Estate Glossary (cont.):

Severalty Ownership: Severalty Ownership: Severalty Ownership:

Severalty Ownership: ownership by one person only. Sole ownership. Tenancy In Common:

Tenancy In Common: Tenancy In Common:

Tenancy In Common: ownership by two or more persons who hold an undivided interest without right of survivorship. (In event of the death of one owner, his/her share will pass to his/her heirs.

Title Insurance: Title Insurance: Title Insurance:

Title Insurance: an insurance policy that protects the insured (buyer or lender) against loss arising from defects in the title.

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Buying Real Estate Owned Property (REO):

REO REO REO

REO (Real Estate Owned) is a home that the bank takes back from the owner that is not sold at auction. The REO property is typically property that has a mortgage balance equal or greater than the value.

If you are dealing with REO's, remember that the properties are now owed by the bank and free of any liens. The banks are still going to try and get the most money they can for the property but they are more willing to take a quick loss and move on.

Other items the banks will handle may include removing IRS tax liens and paying off HOA dues. The biggest benefit of buying bank owned property is you will have the opportunity to get title insurance. Title insurance will ensure that you do not have any additional liens recorded against the property. Some of the issues when buying property in distress are that you have other liens that have to be satisfied which can make it very difficult to get clear title insurance. Bank owned property will come with clear title.

Be aware: REO property may not be right for you. Do your research before making any offers. If you do make an offer and move forward on the purchase, make sure that you are paying a fair price compared to others in the area. Don't get into a bidding war because the property appears to be a good deal. Many times, people chasing REO property end up paying market value because they get into a biding war. Foreclosures are not always the bargain you may think they will be. North County Home Source will provide you with the are not always the bargain you may think they will be. North County Home Source will provide you with the latest comparable properties that sold in the area thus enabling you to make a fair offer on a REO property. How do banks sell REO property?

How do banks sell REO property? How do banks sell REO property? How do banks sell REO property?

Every bank is a little different when it comes to selling REO property but one thing remains the same. They all want the highest price possible and do not want to sell the property cheap. The other item that is similar among all banks is that they usually have a separate department set up to only handle REO property. North County Home Source lists REO, Bank Owned properties.

If the offer becomes accepted, you may experience a delay getting a final approval or because the offer may need to be approved by someone else at the bank. Typically, it can take an extra 5-10 days for your offer to receive final approval.

What is the condition of the property? What is the condition of the property? What is the condition of the property? What is the condition of the property?

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Buying Real Estate Owned Property (cont.):

Most contracts call for a time period to back out of the transaction should you find problems with the home. Make sure you have enough time to back out of the transaction if you need to and not jeopardize your deposit. North County Home Source has the experience to write your offer so that your inspection periods remain intact.

How to Write Offers to Buy REO Foreclosures How to Write Offers to Buy REO Foreclosures How to Write Offers to Buy REO Foreclosures How to Write Offers to Buy REO Foreclosures

Lots of savvy home buyers want to hit the jackpot and buy that REO foreclosed home, many of which are often under-priced. When banks price REOs under the comparable sales, multiple offers are often the response. This means you could be up against stiff competition for that bank-owned home.

It's not unusual for some REO homes to receive 15 or 20 offers. Sometimes the bank will throw out all but two offers and then ask the selected buyers to resubmit what is called "Highest and Final" offer. Sometimes the bank simply accepts the best offer at inception.

You usually have 1 opportunity to write your best offer. North County Home Source can assist in writing your offer to shine above all the rest. Here are a few tips to help you select the right price and terms:

1) Determine Comparable Sales: In many cases, the list price has little bearing on the value of the home. The market value carries the most weight. If you are up against competing offers, other buyers will offer more than list price.

Look at the last three months of comparable sales, a mini Current Market Analysis, CMA, for that

neighborhood to determine how much this REO is worth. Try to use only those homes that most closely match the REO regarding square footage, number of bedrooms, baths, amenities and condition. North County Home Source provides you this information.

2) Ask About Number of Offers: If there are no offers on the REO home, you can probably offer less than list price and get your offer accepted. However, if there are more than two offers, you will most likely need to offer above the asking price. If there are 10-15 offers, bear in mind that some of those offers may be all cash. Banks like all cash offers. If you are obtaining financing, then you may need to increase the price on your offer in order to be seriously considered. North County Home Source can obtain this information for you.

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Buying Real Estate Owned Property (cont.):

4) Don't Ask for Repairs / Inspections: Sometimes banks will pay for repairs, but typically will not agree to do so at the offer stage. If there are problems found during a home inspection, renegotiate after your offer has been accepted. North County Home Source knows how to productively negotiate this step.

5) Shorten the Inspection Period: If other buyers ask for 17 days, for example, to conduct inspections, and you ask for 10, you will be deemed the more serious buyer.

6) Do not ask for closing fees above what is required by FHA/VA Lenders: If you must request all closing costs to be paid by the bank, adjust the offer price to cover those costs.

7) Consider the Appraisal Consequences: If you offer over list price, bear in mind that the appraisal will need to substantiate that price. If you find yourself dealing with a low appraisal, you have options, so don't despair. Remember, the bank will most likely run into this problem with the next buyer who obtains financing. North

County Home Sourceis experienced in successfully negotiate this step.

8) Don’t Ask the Bank to Pay for Any Extras: Pay for your own Home Warranty, Natural Hazard, CLUE and Inspection Reports. The competition is stiff, so the less you ask the bank to pay, the stronger your offer. The price for these items is not very high and can go a long way in making your offer more appealing to the price for these items is not very high and can go a long way in making your offer more appealing to the bank. North County Home Source supplies you options so that you can choose the best prices for these services.

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In these difficult financial times, more and more sellers are finding they need to sell their homes for less than they owe on their mortgages, known as a "short saleshort saleshort saleshort sale". This can be a good deal for you as a buyer, as long as you are aware of the extra time, work and patience required to make it happen.

A short sale means the seller's lender(s) accepts a discounted payoff to release an existing mortgage. Just because a property is listed with short sale terms does not mean the lender(s) will accept your offer, even if the seller accepts it.

You may want to think twice about making an offer on a pre-foreclosure, short sale home. It's not as simple as you may believe, and very few can close in 30 days or less. Many home buyers have waited 4 to 6 months to close on a short sale, sometimes longer. Although there are rumors that the lenders are working to shorten the time frames and frustrations involved with this process, no concrete changes have occurred so far. North County Home Source is ready to navigate with you through the entire process!

Do your research before making an offer to purchase. North County Home Source can find out who is on title, whether a foreclosure notice has been filed and how much is owed to the lender(s). This is important because it will help you to determine how much to offer.

Often there are two loans, thus further complicating the process. The first mortgage lender's position is Often there are two loans, thus further complicating the process. The first mortgage lender's position is protected by the second lender, unless the second lender does not agree to foreclose. If a seller owes $160,000 on the first and $40,000 on the second, offering $160,000 leaves nothing for the second. The first will need to give somethingto the second to gain the agreement of the second lender.

Hire an Agent with Short Sale Experience Hire an Agent with Short Sale Experience Hire an Agent with Short Sale Experience Hire an Agent with Short Sale Experience

North County Home Source has experience in short sales and will help to expedite your transaction while also protecting your interests. You don't want to miss any important details due to inexperience or find out your transaction is not going to close on time because no one has followed up in a timely manner. Madeleine Lavelle, a North County Home Source agent is a Certified Short-Sale Professional (CSP) and Certified HAFA Specialist (CHS).

Submit Documentation & Purchase Offer to Lender Submit Documentation & Purchase Offer to Lender Submit Documentation & Purchase Offer to Lender Submit Documentation & Purchase Offer to Lender

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Reserve the Right to Conduct Inspections Reserve the Right to Conduct Inspections Reserve the Right to Conduct Inspections Reserve the Right to Conduct Inspections

Generally, the lender(s) will not pay for customary items that a conventional seller would usually pay. These include home protection plans for the buyer, buyer credits of any kind and pest / termite inspections. A buyer will be asked to purchase the property "as is," which means no repairs. North County Home Source strongly

recommends that a buyer obtain a home inspection and pay for other types of inspections such as pest, roof, sewers, septic tanks, chimney and/or fireplace inspections. Do not waive your right to obtain these inspections and make your offer contingent on approving them.

Settlement Statement Scrutiny Settlement Statement Scrutiny Settlement Statement Scrutiny Settlement Statement Scrutiny

The seller's mortgage lender(s) will want to have an advance look at what's called the “Settlement StatementSettlement StatementSettlement Statement" or Settlement Statement "Settlement/Disbursement EstimateSettlement/Disbursement EstimateSettlement/Disbursement Estimate." The mortgage lender(s) will be carefully reviewing: Settlement/Disbursement Estimate

• Commissions going to real estate brokers

• Where the buyer’s financing is coming from (cash, loan, etc)

• Payments to cover outstanding liens and taxes

• Approximate date of the closing

• Any cash to the seller (a definite no-no)

• Any other expenses which may raise a red flag

Lender Approval of Short Sale Letter Lender Approval of Short Sale Letter Lender Approval of Short Sale Letter Lender Approval of Short Sale Letter

It takes several weeks for the lender(s) to review the offer, order their own Broker Price Opinion (BPO), and review the settlement statement. Once these items have been reviewed and the lender is agreeable to the offer a “Lender Approval of Short Sale” letter is issued. At this point your offer has been accepted by both the seller and the lender(s). The transaction can now move forward towards closing escrow. North County Home Source will assist you through the entire process in order to reach your goal of a successfully closed transaction.

“Not “Not “Not

“Not----SoSoSo----Uncommon” Surprises: SoUncommon” Surprises: Uncommon” Surprises: Uncommon” Surprises:

The Lender may request the buyer pay any or all of the following. To better negotiate these items, we attempt to determine as many of these fees as possible prior to writing an offer.

•Short Sale negotiation fee