Lewis lost his job when the Recreational Vehicle Market had the worst downturn in history in 2009. Our unemployment in Elkhart County was the highest in the whole country at just below 19%.  When Lewis could no longer make his mortgage payment I educated him on the value of listing his home and selling it as a short sale, so we listed his home.

If we would not have sold the home, Lewis would have either had to file bankruptcy or go into foreclosure. Instead we got no less than 6 offers on the property and the long negotiation process caused several offers to be withdrawn.  In the middle of negotiations the mortgage lender sold the loan and we had to start over.  From the first offer to closing was approximately two years.

Lewis said I kept him out of bankruptcy and foreclosure because I would not give up on the process nor would I let him give up.  We closed on this property just a few weeks ago and Lewis is starting over with neither a bankruptcy nor a foreclosure on his record!

Who do you know that is struggling to make their house payment?  Could be a co-worker or the Son or Daughter of someone you know?

Please send their name, phone number and situation to evelyn@evelynjohnston.com. I promise they will get the excellent service they deserve.

Aram and Breana spent two years looking for their Dream Home with 5 REALTOR®’s trying to help them.  They really wanted a home they could call their own, and they knew it was out there somewhere!

They were getting tired of looking and very frustrated.  They were very specific in what kind of home they were looking for, the price range they wanted and the location that would work best for them.  And yet they were shown homes that did not represent their wants, needs or desires.

They were on the verge of giving up!  They called on one of my listings, I readily agreed to meet them and we chatted about whether or not the home met their needs and if they were working with another Real Estate Professional.  They were not tied down to anyone in particular.

I promised them I would set aside Wednesdays every week (their only weekday off) until we found it! I sent them daily emails of homes that met their criteria, and we emailed back and forth the homes they were interested in seeing.

The first Wednesday we looked at 4 or 5 homes and they made an offer on one and was under contract within hours.  They have since moved in, had a House Warming Party and have settled down in their Dream House!

If you or someone you know has looked and looked and looked for Their Dream Home and just can’t seem to find it, please give me their name and phone number and I will call them.  I promise to take excellent care of them!

The Heinz found themselves in a very tight financial position, no matter how hard they tried, they were not able to get caught up and bankruptcy was the only answer for them. Soon after that, divorce solved their other problem.  Mrs. Heinz stayed in the home and continued to pay the mortgage payment. For years and years, and the bank accepted payment each month.

Mrs. Heinz worked very hard trying to repair her credit,

 no late charges,

 no over spending.

At one point she even tried to sell the home, but there were no Buyers. 

Mrs. H. checked her free online credit report and found no record of her on time mortgage payments for the previous 7 years.  The bank told her that although the bankruptcy meant she was no longer responsible for the debt, they appreciated her timely payments.  It would not report on her credit report either the balance owed or her payment history.

Mrs. Heinz receives my newsletter every month and called me to help her find either a home to buy or one to rent.  She was tired of paying and not getting credit for the great job she was doing.  I referred her to Roger Maxwell of Guaranteed Rate Mortgage Lending for credit approval and he informed both of us that Underwriter’s don’t necessarily look at the date of discharge, they look at the date the property changed hands.  In this case, that hadn’t happened.

So I listed the home at current market pricing, we received an offer, started looking at homes available and wrote the offer on the home she wanted to live in.  We soon closed on the home that was included in the bankruptcy and three weeks later Mrs.Heinz closed on her new home.

If you or someone you know has been through bankruptcy, whether they continue to live in the home and pay the mortgage payment or not, and they would like to purchase a new home, please give me their name and phone number and I will call them.  I promise to take excellent care of them!

They didn’t know Credit Was So Important…

Until their family outgrew the rental and they wanted to buy a home. Kenny and Samantha called a local Real Estate Company and was fortunate that I was on floor time. This was during the First Time Home Buyer’s Tax Credit and because of bad decisions made in the past, they were not only unable to take advantage of the $8,000 First Time Home Buyers Tax Credit, they could not buy a home at all!

I recommended they contact a local Credit Repair Company that I knew would really try to help them.  The were educated on how to fix their credit and advised what types of credit an underwriter would be looking for.  Job stability for the Kenny was not a problem.  Samantha was employed by the RV Industry and as almost all of the Manufacturer’s were cutting back drastically, Samantha’s employment was up and down.  She found another job that was stable and has worked her way up into a management position.

Friday, March 11, 2011 their American Dream of Home Ownership became their reality.  After almost 4 years of making sure their decisions were to their benefit, the Baker’s were packing and moving and crying, all at the same time…

Many times over the past several years Samantha has called me with the names of her Family and Friends who even mentioned they were thinking of moving.  Everytime I see them I get hugs and smothered with love.

If you know someone who is dreaming of Home Ownership, but isn’t quite there because of credit woes, call me with their names and phone numbers and I will help them get on the right track so that they too can live the American Dream!

and I Want A House!

Nathan knew we were in a Buyer’s Market.  He has worked hard and saved his money, has good credit and now he wanted to buy a home…

The area he chose to look for a home was large.  He works at the north end of the County and all his family lives in the South end of the County, so his options were pretty much open.  Nathan had been pre-approved and knew what he could spend.  The problem was, the homes in his price range were not acceptable living quarters.  The property conditions varied from horrible, run down to, this could work… but he just wasn’t feeling it. 

In the meantime, I received a call from a distressed home owner who had done his homework on the internet.  I have written extensively about Short Sales, and the options a Home Owner has.  This Home Owner was transferred out of state and could not afford two homes. 

I listed the property and immediately called Nathan and scheduled a showing.  I told him if he was willing to wait about 6 months I thought he could get this home in his price range.  He said if he could get this home at his price he would take it!  The Home Sellers bank countered his offer and eventually approved it.

Nathan bought a great home at a great price and has moved in…

If you or someone you know has some down payment money and wants a home of their own at a great price, please call me, Evelyn Johnston, at 574-304-7148, give me their name and phone number and  I promise you I will take really good care of them, just as they deserve!

But Not The Budget…

Chris and Caraisa have lived in a manufactured home for all their married life, and decided a stick built home was more to their taste. They had no basement, no garage and little storage.

After getting them pre-approved we found several homes suitable, but the one they had their hearts set on was an REO Property that needed a lot of renovation.

The very worst thing that could have happened would have been if they bought the home and then not had the money,

perhaps for years, to fixed it up according to their standards, instead I educated them about FHA’s 203K Streamline Loan that would allow them to purchase the home and give them money to fix it up NOW. Caraisa got down to business shopping for the features she wanted in her dream home, turned in the estimates to her Mortgage Professional and we were on our way. Chris and Caraisa were so excited!

Just about this time GMAC halted all sales on REO Properties in 22 states, and this was one of them. The Listing Agent only knew that the hold affected this property. I pointed Caraisa in the direction to go to seek answers about this property. She kept in touch with GMAC every week, then after a month or more Caraisa received the call from the GMAC’s Spokesperson letting her know that her dream home was one of the first to be released because of the effort she put forth.

Chris and Caraisa are right now happily providing some elbow grease in the finishing of their home. Plans to move in are within the month.

Caraisa has told me over and over that she couldn’t have done it without me, I’m the BEST and I am the BOMB! (Big Smile)

Whom do you know that has Champaign Taste, but not the budget? Are you, or they, willing to give up some time and elbow grease to get a fabulous bargain? Call me, Evelyn Johnston,  at 574-304-7148 with their name, phone number and situation. I will gladly give them the excellent care they deserve!

To answer the question, take a personal fiscal assessment.  A solid look at your finances, specifically how much you currently owe, how much you have available for a down payment, and the approximate amount of your estimated monthly mortgage payments, will  help you determine the kind of loan you’ll be able to procure.

An up-front assessment will give you an opportunity to eliminate potential snap\gs that might occur in the borrowing process.

The best step a would be Home Buyer can take before beginning the loan application process is to get finances in ship-shape order.  You can make sure your current credit standing is good by reviewing a personal credit report from a credit bureau.  Inspect it carefully.  If there are any errors at all, have them corrected.  Lenders will be looking for late payments, bankruptcies and unpaid collections.

Next, take a look at your current debt load.  Lenders will take into consideration how much debt you already have to determine how much they’ll loan.  Generally, loans are based on the borrower’s debt-to-income ratio.  This typically ranges from 27 to 29% of gross monthly income compared to a 36% gross monthly income pay out for all debts.

If you currently are paying off considerable debts such as credit card balances, cars, college loans, etc., this may lower the amount of loan for which you’ll qualify.  Try to pay off as many loans ahead of time as possible to increase your mortgage borrowing power.

Prospective Home Buyers who want outside help in determining their borrowing status can contact a Financial Counselor or Mortgage Lender.  If you would like a suggestion for a lender, your Real Estate Professional can put you in contact with one.  These experts will help you determine the amount of Mortgage Loan you can qualify for and what home price range you can afford.

Once the amount is established, you’ll want to look at the four basic types of Mortgage Options.  These include: 30-year fixed rate mortgages, 15-year fixed rate, adjustable-rate mortgages (ARMs), and hybrid loans, which are a combination of fixed and adjustable.

To find out about these various home loan options in detail, you can talk with your Real Estate Professional Evelyn Johnston of Elkhart County Subdivisions , or broker or Lending Professional, read real estate books, attend home-buying and mortgage seminars or even surf the Internet.

You may also want to pre-qualify for a loan.  Pre-approval takes the uncertainty out of house-buying. Through this process, the lending institution establishes exactly how much you can borrow.  Paperwork for the loan is submitted, followed by a credit check, evaluation and verification of your creditworthiness, and finally, a loan agreement.  As a Home Buyer, you will not be committed to making the home purchase for which you have pre-qualified, but you will have established your creditworthiness.

Sellers are more likely to look favorably on a potential Buyer who has pre-approval.  And it can mean an advantage in getting the house you want over someone else, result in a quicker transaction and can possibly mean saving money on the price of the home.

PMI does not, as some people believe, provide protection for a Home Buyer, such as paying off the mortgage balance in case of death, disability or unemployment.  PMI is required by Lenders in most cases where the Buyer’s equity position is less than of the home’s value, because the less equity a buyer has in a home the more risk there is that he or she may default on the mortgage.

If PMI protects only the lender, how does it benefit the buyer? The most important benefit of PMI is that it opens the door to homeownership for many buyers, not only in Elkhart County, Indiana but all across these great United States of America and is enabling them to buy homes sooner (often by several years) than they otherwise could, because they don’t have to wait until they save a 20% down payment.  Even buyers who can afford a 20% down payment may opt to put a smaller amount down, for tax or investment reasons.

In the past, PMI premiums were fairly consistent, ranging from .005% to .0025% of the loan amount per month, depending on the level of equity the borrower had in the home.  Recently, PMI insurers made a beneficial change providing an alternative to the large up-front premium that borrowers traditionally paid when the loan closed.  Now borrowers have the option of playing an up-front fee or paying a slightly higher monthly premium.

A few lenders offer buyers an alternative to PMI.  Basically, the lender self-insures, offering a loan to the buyer at a slightly higher rate, which compensates the lender for the added risk of a low down payment loan.  Going with a lender who self-insures has two advantages: First, PMI companies sometimes turn down borrowers whom lenders have already approved.  With a self-insuring lender, this risk is eliminated.  Also, the extra interest paid may be tax deductible, unlike PMI payments, which are not.

So, with all that said, not having a down payment will not necessarily keep you from buying a home.  Call your local Real Estate Agent Evelyn Johnston with Elkhart County Subdivisions at 574-304-7148.

When a REALTOR lists your property for sale, he or she pays a fee and your home is placed on the MLS system.  The big advantage to Sellers is that the MLS is the Number 1 resource used by Buyers (and REALTORS) to locate homes.  Properties that are not listed (usually those being sold by their owners) are not on the MLS, thus there are many Buyers and REALTORS who will not be exposed to the homes.

The MLS has become such a standard in Elkhart County Real Estate that no serious Broker would think of trying to sell Real Estate without it.  It would be like an accountant trying to work without a calculator.  About the only residential Brokers who might not use the MLS are those who exclusively handle forclosed properties or high-end homes owned by celebrities and the like.

The MLS provides a surprising amount of detail and may include the location (by ZIP code): size of the home (square footage); size of the lot, number of bedrooms and bathrooms; extra rooms such as a den, family room, formal dining room, or enclosed pation; amenities such as a backyard, fireplace, hot tub, pool, kitchen features, new carpet and drapes; capacity of garage; age of home; and, of course, the selling price and terms.

Buyers can narrow their house-hunting searches dramatically by using the MLS.  For instance, their sales professionals can do a computer search and ask for a listing of all homes eithin a certain location and price range that have two or three bedrooms and that are not more than 10 yars old.  Not only will this requiest generate a brief list of viable possibilities, it also helps Buyers gauge, roughly, what they can expect to get for their money and to compare the value of the homes listed.

Thus, the MLS is more than a system that lists properties.  It’s an aid to both Buyers and Sellers and is a definite asset to consumers when it comes to Real Estate.  Elkhart County REALTOR Evelyn Johnston with Elkhart County Subdivisions is a member in good standing with the Elkhart County Multiple Listing Service.  She can be reached by both Buyers and Sellers with Real Estate questions at 574-304-7148.