CENTURY 21 JRS Realty

Avoid Mortgage Fraud

2009-07-06T12:53:00.001-05:00

Avoid Mortgage Fraud (edit/delete)
Mortgage fraud has many guises

by Lisa Fleisher/The Star-Ledger Sunday July 05, 2009, 10:15 AM

As the economy changes, so do the ways people try to make a quick -- and sometimes criminal -- buck.

In response, state and federal agencies are ramping up efforts to track down and prosecute people who committed fraud that hurt major financial institutions and everyday homeowners.

There's no single crime known as "mortgage fraud." Instead, people are charged with crimes such as mail fraud or identity theft. The height of the fraud activity might have taken place two or three years ago, but the prosecution is just ramping up.

The FBI created a national mortgage team in December and more than doubled the agents devoted to this type of crime.

Here's a primer to the types of mortgage fraud that are out there, how to get help and what it all means to you.

GLOSSARY

mortgage: Loan used to buy a home.

mortgage-backed security: Financial instrument that allows investors to buy shares in a fund that combines many mortgages into one pool.

straw buyer: Person named on mortgage documents but who is not really the intended homebuyer; often used when the actual buyer does not have good enough credit or high enough income.

equity: Money built up in the house by paying into the mortgage. For example, a person who made $100,000 in mortgage payments on a $300,000 loan has $100,000 in equity in the house.

shell company: Company set up for a single purpose. In our context, fraud.

WHY I SHOULD CARE

Mortgage fraud deflates property values across the board, destabilizes banks and
can ultimately put greater stress on our social safety nets by leaving victims destitute. Fraud often results in foreclosure, which pushes down neighboring home prices, can chip away at the town's tax base and strains municipal resources.

TYPES OF MORTGAGE FRAUD

INCOME AND EMPLOYMENT FRAUD

Method: Perhaps the most prevalent, either homeowners lie about their income or loan brokers coerce or flat-out falsify documents to get a loan approved.

Result: Homeowners end up with loans they can't afford.

REVERSE MORTGAGE FRAUD

Method: Elderly people who might have lost retirement funds sometimes turn to a reverse mortgage, which allows them to take a new mortgage out on a house they've already paid off. While this is sometimes a helpful tool, industry watchers and government officials warn about people charging sky-high fees.

Result: Elderly people are either cheated by high fees or, in worst-case scenarios, lose their house because they signed documents they did not understand.

PHANTOM HELP

Method: A type of foreclosure rescue scam in which a fraudster collects an upfront fee from homeowners trying to save their homes from foreclosure -- and then disappears.

Result: Criminals do nothing and pocket the fee.

MORTGAGE-RELATED IDENTITY THEFT

Method: Perpetrators use stolen identities to buy properties outright or take out mortgages.

Result: Victims find out they are on the hook for mortgages and loans.

SHORT SALE FRAUD

Method: A buyer colludes with real estate agents or others to give faulty appraisals to banks and convinces them a property is worth less than it is.

Result: Banks are defrauded and surrounding property values can drop.

BAIT AND BUMP

Method: Lenders or brokers dangle attractive loans in front of desperate homeowners. But when it comes time to close, buyers are told it's too late to switch.

Result: New homeowners are left with mortgages they can't pay or end up signing away their homes.

EQUITY STRIPPING OR SKIMMING

Method: There are several definitions for this, one of which is synonymous with lease buy-back (see below). Another iteration is when a fraudster convinces people to invest in or buy properties, using their credit to get loans for inflated property values, but walks away.

Result: Investor or group of investors is left with properties, which often have been neglected and have gone into foreclosure.

LEASE BUY-BACK

Method: Homeowners facing foreclosure sign over the deed to a company or individual who promises to sell it back after a year, during which the homeowners can get their finances in order. In the meantime, they are told they will be allowed to rent the house.

Result: The scammer evicts the original homeowner-turned-renter and keeps or sells the property.

HOW DO I AVOID BECOMING A VICTIM?

• Be skeptical of people who make unsolicited contact.

• Don't hesitate to ask as many questions as you need until you understand what you are signing.

• Don't sign blank forms.

• Check to make sure your name is correct on documents and matches your identification.

&bull Check mortgage agent, real estate agent and lawyer's certifications through state agencies.

• Review the value of the home by comparing it with others nearby, and go over the sales history of the home to see whether the value has been inflated through multiple sales.

• Remember, if it's too good to be true, it probably is.

Q&A

Q: Are frauds like these new?

A: No, many of these methods have been around for decades.

Q: Why are we just hearing about them now?

A: A few reasons are often cited: The falling economy strips away the financial cover some of these perpetrators may have had, leaving more people with mounting losses; companies are reporting fraud more frequently; state and federal agencies are stepping up enforcement.

Q: Are the victims always innocent?

A: No, sometimes -- but not always or often -- victims can be partial participants. They get a cash payment and do not ask questions or agree to falsify information. The key, however, is that the licensed professional who ought to know better is helping them along.

Q: Does a prosecution prevent a company from doing business?

A: Not necessarily. Unless there is an injunction, the companies might be able to solicit customers and operate websites until proven guilty or until their licenses are stripped away.

Q: What is being done?

A: A half-dozen federal agencies are investigating these frauds -- including the FBI, the Secret Service, the Department of Housing and Urban Development and the IRS. So are states' attorneys general. The number of FBI special agents assigned to mortgage fraud increased to 250 in February, from 120 in 2007, and Congress is considering adding $35 million to the FBI's budget for this type of fraud detection.

New Jersey Attorney General Anne Milgram said her office is using civil cases to go after suspected criminals, because civil cases can be brought more quickly, but might follow up with criminal charges. Also, she said she told the Division of Consumer Affairs to look into TV and radio commercials making debt relief or foreclosure relief claims.

Q: Why aren't banks doing more?

A: Some say the banks do not want to investigate their own loans for fear it will taint them or open them up to lawsuits because their loans have been packaged into mortgage-backed securities made with certain promises against fraud.

Q: Why aren't more of these cases being prosecuted?

A: Criminals can be difficult to pin down, since many businesses have gone bankrupt or perpetrators have skipped the state.

WHERE SHOULD I GO FOR HELP?

Contact the New Jersey Division of Consumer Affairs at (800) 242-5846 for in-state callers and (973) 504-6200 from out of state; or visit njconsumeraffairs.gov.

If you are facing foreclosure, visit a U.S. Department of Housing and Urban Development-approved counselor. For a list, visit the real estate blog at nj.com, call (888) 989-5277 or go to NJForeclosureMediation.org.

Sources: N.J. Attorney General's Office; FBI; Mortgage Asset Research Institute; Interthinx

Home Buyer Tax Credit

2009-06-18T09:49:00.001-05:00

The new-and-improved version of the First-Time Homebuyer Credit offers rookie home buyers (or those who simply haven't owned a home in the past three years) a chance to get a federal income tax credit of up to $8,000. Thanks to this year’s Stimulus Act, you don't have to repay the credit like you did with last year’s version.

Even better, the IRS says unmarried individuals can team up on a home purchase and then share the credit. If you're thinking of going this route, here's what you need to know to get the best tax-saving results:

How Much You'll Get
The updated First-Time Homebuyer Credit can be applied to purchases of homes that occur between Jan. 1, 2009, and Nov. 30, 2009. The maximum credit equals the lesser of 10% of the purchase price of a principal residence or $8,000. Or, in the case of married individuals who file separately, $4,000. (These amounts are up from the $7,500 and $3,750 limits for purchases that occurred between April 9 and Dec. 31 of last year.)

There are some catches, however. The credit is phased out (reduced or completely eliminated) if your modified adjusted gross income (MAGI) is too high. (For this purpose, MAGI means the adjusted gross income figure reported on the last line on page 1 of your Form 1040 increased by certain income from outside the U.S. that is exempt from taxation.)

For married joint filers, the credit is phased out when the MAGI is between $150,000 and $170,000. For unmarried individuals and married individuals who file separately, the credit is phased out between MAGI of $75,000 and $95,000.

You can use the credit to offset your entire federal income tax bill, including any alternative minimum tax (AMT). Since the credit is refundable, you can collect any amount left over after your tax bill has been reduced to zero in cold, hard cash.

Eligibility
The credit is only available to buyers who have not owned a principal residence in the U.S. during the three-year period that ends on the purchase date for the home. That home must serve as the new principal residence.

If you’re married, both you and your spouse must pass the three-year test (whether or not you file jointly). If you’re unmarried, and you team up with another person to buy a home that serves as the new principal residence for you both and you both pass the three-year test, then you can share the credit. If only one of you passes the three-year test, only that person can claim the credit.

Unmarried Buyers Can Share the Credit
Say two (or more) unmarried individuals buy a home together that serves as their new principal residence. Assuming each person passes the three-year test and they jointly own the property as tenants in common or as joint tenants, they can pretty much share the credit any way they choose, according to IRS Notice 2009-12. However, the total credit is still limited to the lesser of 10% of the purchase price or $8,000. And the credit allocated to each person is still subject to the phase-out rule, based on MAGI. Although the IRS doesn’t actually say so, it appears you can’t claim a credit that exceeds your share of the purchase price (including your share of any mortgage debt). Here’s an example to illustrate the possibilities.

Example: Say you and your significant other jointly buy a home for $150,000 in June of this year and you both pass the three-year test. You pay 60% of the cost, and your partner pays 40%. The available credit for this purchase is $8,000 (lesser of 10% of the purchase price or the $8,000 credit ceiling). You and the other person could agree to share the credit 60/40 to reflect your shares of the purchase price. But if the other person's MAGI is too high to claim the credit and yours is not, then it makes good tax-saving sense to have the entire $8,000 allocated to you. On the flip side, if your MAGI is too high, the entire $8,000 could be allocated to the other person. Or you could split the credit 50/50, or 75/25, or 25/75, or whatever allocation suits the two of you best. Anything you decide is OK with IRS.

Word of Caution: Credit Must Be Repaid in Some Circumstances
Under last year’s version of the First-Time Home Buyer Credit, those who bought homes between April 9, 2008, and Dec. 31, 2008, were generally required to repay the credit over 15 years. The Stimulus Act eliminated the repayment rule -- in most cases. However, the repayment rule can still hit you if you sell the home you buy in 2009 within three years of the purchase date or stop using the home as your principal residence during that time. If either of those events occurs, you generally must repay your entire credit when you file your Form 1040 for the year during which the triggering event occurs (no 15-year repayment deal for you).

Deciphering Mortgage Types

2009-06-17T21:26:00.002-05:00

Deciphering Mortgage Loan Types

Home loans got your head spinning? You're not alone. We all need a clear explanation of mortgage types before we take the plunge into the home buying market. Get help understanding types of mortgages here before you go shopping for your own home loan. We've compiled a solid list of resources to consider when understanding mortgage types.

There are four basic types of mortgage loans: fixed rate loans, adjustable rate loans, convertible mortgage loans and balloon mortgage loans. Learn more here. Walletpop: Types of Mortgage Loans

You may have heard of FHA or VA Loans. The Federal Housing Administration (FHA) is part of the U.S. Dept. of Housing and Urban Development (HUD). An FHA loan usually requires a lower down payment and must not exceed the statutory limit. Similarly, VA loans, backed by the Department of Veteran Affairs can offer lower down payments and terms if you qualify for one.

Conventional loans may fall under the category of conforming or non-conforming. Conforming loans are backed by Fannie Mae and Freddie Mac, who set terms as to how much the loan may be for, what kind of credit requirements are involved and amount of down payment. Jumbo loans, above the maximum amount established by Fannie and Freddie can have higher interest rates.

Need more help with explanation of mortgage types? We have a simple explanation and list of some of the more popular loans. See which loan is right for you.

What is Negative Amortization?

Negative amortization happens when a loan payment schedule has increasing amounts each year because the scheduled monthly payments do not fully cover the amount of interest due. The unpaid interest builds up and is then added to the principal of the loan, resulting in you owing more on the loan balance each year instead of chipping away at the principal balance.

Graduated payment loans allow you to buy a home with a larger loan and a smaller payment up front. However, the payments go up at pre-determined times throughout the loan, and keep accelerating into larger payments toward the end of the loan life to catch up for the earlier lower payments. During this time, especially the early years, they are building up negative amortization, thus you are owing more each year on your loan balance than you started with.

Option ARM loans have become popular during the boom, as they allow you to buy a home with a large loan, yet pick which payment you want to send in monthly. In good times, you may choose the lowest payment, which would accrue negative amortization. In good times, you may want to bump it up to an interest only or even a fully amortized payment. These loans may be beneficial to someone starting out in a career that needs a lower loan payment option, but as you progress in life you can pay the higher amount, thus combating or making up for the early negative amortization.

Fixed Rate or Adjustable?

With a fixed rate loan your payment generally stays the same through the life of the loan. You can get a lower interest rate for shorter term loans, for example if you chose a 15 yr. vs. a 30 yr. You'll get a lower payment with a longer term however you'll pay a lot more interest, and therefore more on the total loan throughout the loan life.

Payments on adjustable rate mortgages (ARMs) change through the life of the loan. Adjustments are made to the interest rate of the loan based upon the defined index the loan uses, such as a Treasury Bill (T-Bill) or Cost of Savings Index (COSI) or many more. Arm Indexes Explained

If you really want some heavy reading on ARM loans, check out the Federal Reserve Board's Consumer Handbook on Adjustable Rate Loans.

Fixed or Adjustable? See which loan is right for you from Bankrate.

Glossary of adjustable rate mortgage terms:
Federal Reserve ARM Glossary

2 in a Row

2009-06-11T09:17:00.002-05:00

2 In a Row?
That's right, 2 months in a row Eddie Kefalas has earned the CENTURY 21 JRS Realty Agent of the Month Award. With the stacked roster of top agents CENTURY 21 JRS Realty employs this is a tremendous accomplishment. CENTURY 21 JRS Realty has some of the hardest working, well trained agents in the Union & Middlesex County area. For Eddie to be the Agent of the Month for April and May of 2009 is a great accomplishment. CENTURY 21 JRS Realty is very happy for Eddie and would like to wish him even more success moving forward. This market will not stop CENTURY 21 JRS Realty from reaching their goals, and it will not stop Eddie either.

Congrats to our Hot Rods & Harley Day Winnners

2009-05-21T10:30:00.009-05:00

Saturday May 16th, 2009 turned out to be a beautiful day after all. CENTURY 21 JRS Realty spent the day out side at the annual street fair in down town Rahway New Jersey, Hot Rods & Harley Day. This year CENTURY 21 JRS Realty gave away 5 bicycles, temporary tattoos, bouncy balls, and many other free items to the public. CENTURY 21 JRS Realty was the only Real Estate company to attend this years street fair, and they made the most of it. Pictured above are some of our winners and hard working agents attempting to help the crowds of people.

Selling in Spring

2009-05-13T13:02:00.001-05:00

Spring is the optimum time to sell a home. Regardless of whether it's a buyer's market or a seller's market, inventory almost always rises in the spring. Why? Because the largest number of buyers are actively searching for a new home during the months of April, May and June.

Tip: If your home has been languishing on the market since the holidays, take it off the market. Give it a chance to "cool down" for a few weeks before putting it back on the market. Nobody is going to look at your home in the spring if the DOM show it's been on the market for several months. Buyers gravitate toward fresh, new listings!
Here are 15 things you can do to improve the odds that your home will stand out among the sea of new listings flooding the spring-time real estate market:

1) Wash windows inside and out / polish all mirrors
Sparkle is free, and sparkle sells homes. A potential buyer may not realize why your home seems so inviting but will feel drawn to it if the windows are spotless and your mirrors reflect sunlight. Cleaning is the first step to preparing your home for sale.

2) Rake the yard / trim back bushes
Clean out dead leaves and debris in your lawn. Don't let overgrown vegetation block the windows or path to the entrance. Cutting bushes and tree limbs will let the sun inside and showcase the exterior of your home.

3) Mow diagonally and edge lawn along driveway / sidewalks
Artfully manicured lawns are edged and tell buyers you pay attention to small details. Diagonally mowed lawns make your yard appear larger.

4) Transplant tulips and daffodils or buy flowers in containers
Yellow flowers stimulate buying urges. After a long winter, everybody is anxious to see the first signs of spring. Yellow tulips and daffodils induce feelings of happiness and contentment. Arrange containers in groups of three or five near the entrance.

5) Clean drapes, curtains & blinds and open every window
Send your window coverings to the dry cleaners or wash, dry and press. Toss blinds into a soapy bathtub for a quick wash. Get rid of all accumulated dust and spider webs. Crisp linens and a spring-time breeze through the windows invites the season inside.

6) Set out fresh-smelling flowers such as just-clipped lilacs branches or peonies
Why not flatter your neighbors and ask if you can borrow flowers from their yards? Natural scents are more appealing than artificial and trigger fewer allergies among those susceptible. Peony vases are designed to hold peonies upright, but wash the flowers first to avoid carrying ants inside. Clever home staging brings color and fragrance indoors.

7) Polish floors to a high gloss
Your hardwood floors should be refinished, if necessary. Make your ceramic and linoleum floors twinkle and shine. Bleach dull grout. Thoroughly clean all area rugs.

8) Utilize towels, throws, pillows in light colors – yellows, pinks, pale blues, lavenders
Even if it means replacing items, towels, linens, throws and sofa pillows are inexpensive accents you can buy. In soft spring colors, they will light up a room. Layer towels on bathroom towel racks and place rolled wash cloths on the counters in a fashionable pyramid.

9) Offer an outside mat for cleaning shoes & put umbrella stand at entrance
No matter where you live, spring weather is often unpredictable. In some states, it can be 72 degrees one day and snowing the next. If it's raining, give buyers a place to stash umbrellas and wipe their feet before entering your home. Some sellers lay down plastic runners across floors for protection, but that tends to ruin the effect of a glittering polish job.

10) Buy brightly colored helium balloons
Stationery and party-supply stores sell helium balloons for about a dollar each. So, there's no reason not to pick up a couple dozen balloons to tie to your open house signs. Balloons build excitement and will get your home noticed by home shoppers.

11) Set out four-color flyers & financing options
Don't skimp on your marketing materials. You want home buyers to select your flyer among the dozens they pick up. Color sells better than black and white. Show home buyers how easily they can afford to buy your home by giving them two or three financing options. The first thing on buyer's minds when considering a home purchase is the monthly mortgage payment. Don't make them guess.

12) Use a color photo for display advertising
Spend a little more on newspaper and online advertising by including a color photograph in your ad. Remember: a picture is worth a 1,000 words. Look through your photo galleries for a seasonal photograph that flaunts your home to its best advantage.

13) Mail four-color postcards with UV coating
Call a local title company to obtain a free direct-mail list of your surrounding neighbors. Print four-color oversized postcards and include a UV coating to give the marketing oomph. Use first-class postage.

14) Fill sink with ice to chill bottled water for guests
Put a couple dozen bottles of water in a sink of ice for buyers. You can also tape labels to the bottles, printed from your computer, with your phone number, a photograph and address of your home.

15) Set out treats, individually wrapped in cellophane & tied w/ribbon
Touring homes makes buyers hungry. Give them a snack. It will give buyers an opportunity to linger in your kitchen and marvel at its elegant appointments, which might otherwise be overlooked.

2009-05-12T14:08:00.001-05:00

Prepping and staging a house. Every seller wants her home to sell fast and bring top dollar. Does that sound good to you? Well, it's not luck that makes that happen. It's careful planning and knowing how to professionally spruce up your home that will send home buyers scurrying for their checkbooks. Here is how to prep a house and turn it into an irresistible and marketable home.

1) Disassociate Yourself With Your Home.
Say to yourself, "This is not my home; it is a house -- a product to be sold much like a box of cereal on the grocery store shelf.
Make the mental decision to "let go" of your emotions and focus on the fact that soon this house will no longer be yours.
Picture yourself handing over the keys and envelopes containing appliance warranties to the new owners!
Say goodbye to every room.
Don't look backwards -- look toward the future.

2)De-Personalize.
Pack up those personal photographs and family heirlooms. Buyers can't see past personal artifacts, and you don't want them to be distracted. You want buyers to imagine their own photos on the walls, and they can't do that if yours are there! You don't want to make any buyer ask, "I wonder what kind of people live in this home?" You want buyers to say, "I can see myself living here."

3)De-Clutter!
People collect an amazing quantity of junk. Consider this: if you haven't used it in over a year, you probably don't need it.
If you don't need it, why not donate it or throw it away?
Remove all books from bookcases.
Pack up those knickknacks.
Clean off everything on kitchen counters.
Put essential items used daily in a small box that can be stored in a closet when not in use.
Think of this process as a head-start on the packing you will eventually need to do anyway.

4)Rearrange Bedroom Closets and Kitchen Cabinets.
Buyers love to snoop and will open closet and cabinet doors. Think of the message it sends if items fall out! Now imagine what a buyer believes about you if she sees everything organized. It says you probably take good care of the rest of the house as well. This means:
Alphabetize spice jars.
Neatly stack dishes.
Turn coffee cup handles facing the same way.
Hang shirts together, buttoned and facing the same direction.
Line up shoes.

5)Rent a Storage Unit.
Almost every home shows better with less furniture. Remove pieces of furniture that block or hamper paths and walkways and put them in storage. Since your bookcases are now empty, store them. Remove extra leaves from your dining room table to make the room appear larger. Leave just enough furniture in each room to showcase the room's purpose and plenty of room to move around. You don't want buyers scratching their heads and saying, "What is this room used for?"

6)Remove/Replace Favorite Items.
If you want to take window coverings, built-in appliances or fixtures with you, remove them now. If the chandelier in the dining room once belonged to your great grandmother, take it down. If a buyer never sees it, she won't want it. Once you tell a buyer she can't have an item, she will covet it, and it could blow your deal. Pack those items and replace them, if necessary.

7)Make Minor Repairs.
Replace cracked floor or counter tiles.
Patch holes in walls.
Fix leaky faucets.
Fix doors that don't close properly and kitchen drawers that jam.
Consider painting your walls neutral colors, especially if you have grown accustomed to purple or pink walls.
(Don't give buyers any reason to remember your home as "the house with the orange bathroom.")
Replace burned-out light bulbs.
If you've considered replacing a worn bedspread, do so now!

8)Make the House Sparkle!
Wash windows inside and out.
Rent a pressure washer and spray down sidewalks and exterior.
Clean out cobwebs.
Re-caulk tubs, showers and sinks.
Polish chrome faucets and mirrors.
Clean out the refrigerator.
Vacuum daily.
Wax floors.
Dust furniture, ceiling fan blades and light fixtures.
Bleach dingy grout.
Replace worn rugs.
Hang up fresh towels.
Bathroom towels look great fastened with ribbon and bows.
Clean and air out any musty smelling areas. Odors are a no-no.

9)Scrutinize.
Go outside and open your front door. Stand there. Do you want to go inside? Does the house welcome you?
Linger in the doorway of every single room and imagine how your house will look to a buyer.
Examine carefully how furniture is arranged and move pieces around until it makes sense.
Make sure window coverings hang level.
Tune in to the room's statement and its emotional pull. Does it have impact and pizzazz?
Does it look like nobody lives in this house? You're almost finished.

10)Check Curb Appeal.
If a buyer won't get out of her agent's car because she doesn't like the exterior of your home, you'll never get her inside.
Keep the sidewalks cleared.
Mow the lawn.
Paint faded window trim.
Plant yellow flowers or group flower pots together. Yellow evokes a buying emotion. Marigolds are inexpensive.
Trim your bushes.
Make sure visitors can clearly read your house number.

Agent of the Month-Eddie Kefalas

2009-04-30T10:18:00.002-05:00

Congratulations to Eddie Kefalas on being the Agent of the Month for April 2009
Eddie Kefalas brought his Real Estate career back to the office that gave him his start 12 years ago, CENTURY 21 JRS Realty. We are very happy that was the course of action Eddies career path drove him in. Now after being with the company for about a year, Eddie has won the Agent of the month trophy for the first time. In April 2009 Eddie listed 3 homes in the area, and his career is rolling at this point. The transition from his other office was a tough one at first, but after the first few months he started right were he left off. Month after month Eddie registered multiple listings, and finally now Eddie has been recognized as Agent of the Month. CENTURY 21 JRS Realty is very pleased to have Eddie as a family member once again.

Sellers Deserve the BEST Service

2009-04-18T15:28:00.002-05:00

Help From Your Listing Agent

From A-Z, there are literally dozens of things that need to be considered, handled and resolved in the course of selling your home. Certainly that's why you've engaged a professional real estate agent as your partner.

From placing your home on the market to signing the final closing papers, here's how your listing agent can help:

Price and Prepare Your Home for sale
Market to Other Agents
Market to Potential Buyers
Negotiate, Handle Paperwork and Close the Deal
Prepare Your Home
A good agent will help you prepare your home for sale. From offering advice on how to spiff-up your living space to helping you decide on your asking price, here are a few things you can expect from a Century 21 JRS Realty agent. Contact us for more information.

Comparative Market Analysis (CMA). Your Century 21 JRS Realty listing agent can generate a report that compares your home to the other homes currently being sold in your area. It may also show other homes that have sold recently, or expired from the market before selling. This data will help you and your agent decide together on the most realistic asking (or list) price for your home.
Interior and exterior improvements. Your home should "smile a welcome" to prospective buyers. The exterior's curb appeal will get them in the door; the interior will seal the deal. Your agent will tour your home with you, offering objective advice about which improvements that should or could be made. Learn how to prepare your home for sale.
Market to Other Agents
A good agent also knows the value of spreading the word about your home to other agents. A Century 21 JRS Realty agent will widen your audience of potential buyers using these techniques.

Multiple Listing Service (MLS). The MLS lets real estate agents show and sell each other's listed properties as "cooperating brokers." It's an electronic database promoting large and small brokers' listings. The more agents who know your home is for sale, the faster it's likely to sell.
Brokers' Open. Your agent will host this tour (usually held on a weekday morning) and invite local agents to see your home; agents who will preview it for their buyers.
Hot List. Century 21 JRS Realty sales associates are able to quickly broadcast new listings within the real estate community, via computerized "hot sheets" that announce your home's arrival on the market. The faster agents and brokers know your home is for sale, the sooner their buyers will take a look.
Lockbox. Your agent will provide an electronic key or numeric combination to open a door-hanger, which holds your house key. Agents will be able to show prospective buyers your home, even when you're not there. If you're away from home a lot, or if you're house is off the beaten path, this is a great convenience.
Market to Potential Buyers
For every home, there's a buyer. Let your Century 21 JRS Realty agent connect you to "the one" with these tactics.

Yard Sign. Yard signs are an awareness-generating tool, notifying neighbors and drive-by buyers that your home is for sale.
Web Listing. The Internet is a popular choice for home "shoppers." Nationally, more than 80 percent of people in the market for a new home use it. It's especially valuable for people relocating to your area. Your Century 21 JRS Realty agent will provide you with real-time listings, online open houses and plenty of photos that showcase your home to Web surfers. Plus Century 21 JRS Realty guarantees that every one of our listed properties will be promoted on multiple Web sites.
Community Newspaper Ads. This most basic marketing tool is still important in many areas. Your agent will advertise your home in the real estate pages of your local newspaper (and tell you how often), with a brief description, asking price and contact information.
Home Book or Magazine. Free of charge and available just about everywhere that potential buyers shop, home books are another popular marketing tool among sellers (not to mention a very useful catalog when you're buying you're next home).
Showings. Your Century 21 JRS Realty sales associate will set up showings to accommodate the schedules of qualified buyers and their agents – without inconveniencing you and your family.
Open Houses. Your potential buyer may still be around the corner, but open houses can bring them to your door. Ask your Century 21 JRS Realty agent if s/he will hold them and if you should be away from the house when they occur. Consider a weekday open house – they're not just for Sundays anymore! And don't forget to ask your agent to market your open house online!
Direct Mail. Promotional postcards and other written materials about your home can be sent to targeted market areas and the potential home buyers who live there.
Home Warranty. Century 21 JRS Realty offers a home warranty program: a one-year plan that assures prospective buyers that your home's systems (electrical, heating/air conditioning, plumbing, appliances, etc.) will be functional during that time. Such a warranty will protect you and reassure your buyer that your home is of solid value and in good condition.
Close the Deal
It may seem ceremonial, but closing the deal is often the hardest part of a real estate transaction. Your Century 21 JRS Realty agent will start working for you even before the final sale.

Qualification/Pre-Screening. Prospective buyers visiting your home should be financially able to purchase it. Your listing agent can work with the buyer's agent to assure that the people who see your home can afford what you're asking. You may wish to require pre-qualification (or more complete pre-approval) by a qualified lender.
Inspections. City code, general home, and pest and radon inspections. Your Century 21 JRS Realty listing agent can represent you (and your interests) during these appointments so you don't lose time from work or school.
Evaluating and Negotiating the Offer. It takes a certain finesse to navigate the ins and outs of a buyer's offer. Is the offer acceptable? What closing date works for you? Are you willing to repair the roof in exchange for your full asking price? Helping in shaping your decisions is why you'll want a trusted, objective professional like a Century 21 JRS Realty sales associate as your partner.
Contract Acceptance. Buying a home is one of the biggest decisions of your life. Rely on the guidance and objectivity of a trusted professional. Your Century 21 JRS Realty listing agent can make sure that details are remembered and your interests protected.
Legal and Other Documents. A real estate transaction can involve listing and purchase agreements, multiple disclosure statements, addenda, amendments and contingencies. Do you work with real estate-related legal documents every day? Your Century 21 JRS Realty listing agent does. Rely on his/her familiarity with the language, timelines and requirements that lie within these legal documents.
Dispute Resolution. Even the smoothest, simplest real estate transaction involves two parties, with needs and objectives that may differ. The right real estate agent can provide skilled negotiation and mediation and conflict resolution. Let your agent deal with the sticking points that can sometimes offend a seller.
Facilitate Closing. The old adage, "the devil is in the details," is no less true at closing. Once you've accepted an offer on your home, your Century 21 JRS Realty agent will work quietly and efficiently to keep things moving smoothly and according to plan. Broker, lender or title examiner. Everyone needs paperwork, signatures, verifications and certifications. From opening escrow to title transfer, it's another area where the right agent can make the difference.
Transfers. The number one irritant of home buyers is running into unanticipated difficulties in gaining possession of their new (your former) home. Your Century 21 JRS Realty listing agent will make help the transition go smoothly by handling everything from finalizing the transfer of utilities to handing over the house keys and ownership to the new owners.
Pre-sale Repairs and Upgrades. Got a leaky roof that requires a certification? Or perhaps you've agreed to remove an unsightly tree stump. Your Century 21 JRS Realty agent can create a tickler system that will remind you to fulfill your obligation in a timely fashion to prevent breach of contract.
Title Services. Creditors' claims, undisclosed heirs and mistakes in public records. These are issues that could stall your closing. Century 21 JRS Realty offers title service as part of our "one-stop shopping" service.
Contingency Resolution. Contractual contingencies are terms that must be met before an agreement is binding. The written contingency, therefore, must also be removed in writing, by a specified date, before the contract can be fully in effect. Whether it's financing, inspection or any other item your agreement is subject to, your Century 21 JRS Realty listing agent can assist you in understanding and fulfilling these contractual conditions.

Web Tools To Make Life Easier

2009-04-07T11:17:00.000-05:00

10 Free Web Tools to Make Life Easier
These range of Web tools can be good resources for you in your real estate business.

1. Mint.comThis secure financial management tool pulls data from your checking accounts, savings accounts, credit cards, mortgages, and other loans to help you track expenses.

2. Zenbe.com Have multiple e-mail addresses? View all your mail in one inbox, and check in with Facebook and Twitter from the same screen.

3. GetDropBox.com Back up your important documents and e-mail messages. This tool syncs with your computer to save documents and allows you to access them via the Web from any computer.

4. Everyscape.comThis alternative to Google Earth lets you view three-dimensional images of streets and cities at eye level.

5. Inhabitat.com For home owners who want to go green, this eco-friendly design blog provides tips and inspiration.

6. Yelp.com If buyers are new to the area, send them here. Neighbors review local restaurants, spas, doctors, plumbers, and more.

7. Billshrink.comDiscover hidden fees in your credit card accounts and cell phone bills, and get recommedantions for lower-cost alternatives.

8. GasBuddy.com Do some comparison shopping before you fill up. Get a listing of what the gas stations in your area are charging per gallon.

9. FotoFlexer.comTouch up your photographs, create effects, and adjust lighting to create high-quality images worthy for marketing materials.

10. DesignSpongeOnline.com Do-it-yourselfers on a budget will love the easy home decorating projects and gift ideas.

Rahway Street Fair

2009-04-04T08:46:00.002-05:00

Hot Rods & Harley Day here again

Wow, the years go by so fast. I can't believe that another year has come and gone, and we are getting ready for another Hot Rods & Harley Day festival in down town Rahway. Every year at this even CENTURY 21 JRS Realty gives away thousands of dollars worth of promotional items to the public. We do this not to get business from it, but to be one of the few Real Estate companies that gives back to the public. Most people don't even appreciate what we do, let alone use our company because we gave away a Todo pad. We know these events will not bring us business. No, we do them because it is our way of saying thank you to the community with balloons and televisions. Every year we give away some large and small things for the adults and the children in the area. This year we will give away 5 bicycles to 5 different lucky winners. CENTURY 21 JRS Realty will give away 1 bike an hour starting at 1PM and ending at 5pm. We will also have face painting from 2:30pm to 5pm, as well as agents with Todo pads for all the adults. We hope to make this years event as successful as years past.

Agent of the Month

2009-04-02T10:10:00.003-05:00

Congratulations to Joe Piizzi-AGENT OF THE MONTH

I am happy to report that Joe Piizzi is the agent of the month of March 2009. Joe is by far the hardest working Realtor I have known in my 13+ years in the business. In a time of crisis like we are in right now, a hard working agent can breath life into an office by himself, that is what Joe is doing. Joe has put the office on his back and carrying them to the finish line. Joe makes hundreds of calls everyday to past and present clients, strangers, and anyone that will listen. Joe knows that is the name of the game. Nothing worth having ever comes easy, and this Real Estate market is no different. Joe is a model of the perfect Realtor and we feel fortunate to have him as a member of our company. Congrats to Joe on his accomplishment.

Watch Your Words

2009-03-27T10:45:00.002-05:00

The words that you think and speak have a direct connection to your sales skills and subsequent sales results. This revelation has been revealed through many sources, consider using these words as a sales professional in your ongoing efforts to expand your business network and increase sales.

#1: Potential Qualified Customers - Replace the word prospects with this phrase. When you use the word prospects, you have turn those individuals into objects instead of realizing their worth as individuals. Read the book Leadership and Self Deception to learn more.

#2: Qualifying - Is not the desired result of marketing is to qualify your potential buyers? So, exchange the word prospecting for qualifying. Again, this helps you as the sales professional to see the person across the table or the room as an individual as not as a hunk of rock with some veins of gold.

#3: Agree - This word has 100 times more emotional marketing value than the word Yes. The only person who wants to truly hear the word Yes, is you as the sales professional. Agree implies a contract has been established between you and your potential qualified customers.

#4: Earn - Take the word close out of your vocabulary. To close means to shut off. Way in heaven's sake would your salespeople want to shut off their potential qualified customers.

#5: Statement of Work - Unless you are involved in an open bid process such as one issued by governmental, educational or not for profits, consider using this phrase instead of proposal. The word proposal is what all those other salespeople use and places you in the Sea of Sameness. However, Statement of Work implies that you will be doing business with this qualified potential customer. Also, this sets a psychological tone in your mind and possibly one in the mind of your potential buyer.

#6: Educating - The traditional sales based approach simply is not as effective in the 21st information heavy society where benefits can be easily found with the click of the mouse. By employing education based marketing (EBA), your actions demonstrate the value that your solutions bring to the table.

#7: Ask - Even though this word is a verb, to be able to ask is a powerful word that does increase sales. Ask for referrals from existing loyal customers to centers of influence. Ask to speak at local civic to not for profit organizations. Ask how you can help a new contact even if the person is not a qualified potential customer.

Goal Setting Results

2009-03-23T20:27:00.001-05:00

Getting Results from Goal Setting

You've established your goals for the year. Now how do you make them happen? Start with a plan of action and follow it through - all the way to celebrating your success!

Start with the end in mind.
Develop a clear picture of what you want to accomplish. State the end results in one sentence that even a child can imagine, understand and remember. Consider the power of President Kennedy’s goal "to send a man to the moon and bring him safely back home within this decade." Thousands of people did very detailed work and spent billions of dollars based on this simply stated goal.

Develop a written plan.
Get it on paper (or in the computer). Make the plan as specific as possible, in terms of what will be done and by when. A timeline will help you keep on track as far as providing a written outline of your accomplishments to date and what remains to be done.

Enlist support of others.
Let them know what you are doing, and how they and others will benefit from the results you want to produce. Invite them to lend their support however they can.

Set up milestones and reporting systems.
Break the job down into segments, and set target dates for completing each segment. Develop a reporting system on paper or via a good software program. Communicate often with all those who have a need to know to avoid unwanted surprises.

Have a support system.
Set up the supports you need in your work and in your personal life. Have one or more advisers that you meet with regularly to report progress, and get advice and encouragement. Your personal coach can be one of these key people.

Monitor progress and make adjustments.
Realize that even the best plans need to be adjusted in the heat of the battle. Make adjustments quickly and respond to new opportunities or short cuts along the way that help you reach your destination faster. If you find it difficult to get around or through certain roadblocks, get help and advice promptly.

Form mutually beneficial alliances with others.
Find out what other people or groups are natural allies and team up with them so you can help each other reach your objectives more easily and effectively.

Work your plan regularly and continuously.
Maintain a high focused activity level yourself, and get help when you need it. Don’t try to do everything yourself. Delegate as much as you can, and follow up with those to whom you delegate work.

Keep your allies on your side and your enemies at bay.
Inform your allies about progress you are making and problems you are having. Thank them for their help. Protect yourself from important enemies by setting up and maintaining boundaries between yourself and your enemies. Recognize that enemies can be within you as well as about you. When you find that you are doing things that impede your own progress, replace that activity or habit with a better one. Ask your advisers what you personally can do better. Then put the corrections in place.

Celebrate progress along the way and at the completion of your work.
Share the glory. Recognize and thank the people who have helped you produce results.

What makes Goal Setting Successful

2009-03-23T20:16:00.001-05:00

Seven Principles to Successful Real Estate Goal Setting

Your ability to plan, set goals, and create action plans to accomplish your goals is the mark of someone who is truly successful. This skill to set goals is a life-long endeavor. It is a habit that must be cultivated daily for a lifetime. This single activity will have the greatest impact on your life over any other achievement skill.

To be disciplined in setting goals is to sit down with paper and pen and make a list of things you want to acquire, attract or accomplish in the next several years. Earl Nightingale said, "The problem with people is not achieving the goals we set, it is actually the process of setting them in the first place." We are all goal seeking organisms. Your subconscious mind will work on the goal you give it until it is accomplished. You must only set this vast powerful computer in motion by setting the goal.

To achieve a well rounded, joyous life we need to be working toward our goals. When it comes to goals the journey is almost better than the destination. Success was defined by Nightingale as the progressive realization of a worthy goal. You become successful once you set the goal and work towards it. Success is not found only at the attainment level, but also in the striving toward attainment.

You need goals in all areas of your life. It is not good enough to set your sights on your business or commission earnings, transaction sides. You need goals in family, spiritual, physical, financial, and mental areas of your life. This is the only way to achieve balance.

Organize your goals in all areas based on priority. Put the most important ones on the top.

Our overall goal for our life should be to be a continuous goal setter. We need to become so focused and clear on what we desire that every hour and every day we are doing the things that are moving us in our direction of choice and toward our goals.

Studies have shown that you will save ten minutes in execution for every minute that you invest in planning or goal setting. What an incredible return on your investment of time. How often would you invest in an investment that you put in a dollar and got ten dollars back?

Seven Keys of Goal Setting

Your goals must be specific, detailed, and clear. You must invest the time to put them in written form. There is a direct link between your writing the goal, seeing it being written, and burning it into your subconscious mind. The goals you desire must be specific, not vague. To set a goal to be rich or be happy will not draw you to it. Well-written goals are like magnets they will you to your desired result. Your goal must be concrete and tangible. Highly defined goals are attained fuzzy goals are forgotten.

The goals you set you must be measurable. How can one truly measure happiness? You have to be able to analyze and evaluate your progress and your results in a tangible way. Many people have a goal of being rich. You need to know specifically how much money rich is. Your need to know the specific time period you want to achieve it by. Now that's a goal.

The best goals have deadlines. They have a time by which you need to accomplish them by. They also have interim steps along the way that can be monitored. These sub-deadlines or schedules are critical to success. There are no unrealistic goals; there are merely unrealistic time frames.

Goals need to challenge you to capacity or beyond. They will stretch you and mold you into a new person. Jim Rohn wisely said, "It's not the money that makes the millionaire successful; it's what he had to become (as a person) to earn a million dollars." If you took the money away from that millionaire that millionaire, would make it back twice as fast as before, because he learned the skill to make it in the first place.

Your goals need to possess congruency with your values and beliefs. You goals also have to be harmonious with each other. Let me give you an example, I want to lose 40 pounds, but I also want to eat Dreyer's Rocky Road ice cream every night before I go to bed. One of these goals will need to give way to the other. They are not congruent with each other. There is no way I can achieve both at the same time. You can not achieve goals that are actually contradictory.

Your goals must have balance. Just as a wheel needs balance to rotate properly; we need balance to get anywhere in life. Make sure you are balanced between your personal life, family, financial, spiritual, physical, mental, and business goals.

The largest most difficult goal in life is to define your purpose goal. We all have one goal that is at the core of our being. Our life moves to greatness when we decide upon a definite purpose or focus for our life.
I can speak from personal experience. When I determined my "core purpose" was to make meaningful impact in people's lives for all the people I come in contact with, my perspective changed dramatically. My enjoyment of my day to day "work life" increased.

Capital Gains Tax

2009-03-21T10:23:00.003-05:00

Capital Gains and You
Congratulations! You now have a "sold" sign in your front yard. The sale of your home is complete and, hopefully, you netted a profit. If you did, be aware that you may be subject to capital gains tax. That simply means that you sold your home (a capital asset) and made a profit (gain), which could be subject to taxes.

The Taxpayer Relief Act of 1997 changed the tax laws concerning capital gains on primary residences. In years past, when you sold your home you could delay paying tax on your profit if you purchased another home within two years of selling. (There were also restrictions on the price of the home you had to buy.)

Today, you don't have to purchase another home to receive capital gains tax relief and you only pay taxes on any gains over $250,000 ($500,000, if filing jointly).

Here's how the IRS recommends figuring the gain (or loss) on the sale of your primary home:

1. Subtract your expenses from the selling price to obtain the realized amount.

Expenses typically include:

o Commissions,

o Advertising fees,

o Legal fees, and

o Loan charges, such as points.

2. Subtract the adjusted basis you made to the basis of your home from the realized amount to get the gain (or loss). (The basis is the amount you paid if you bought it or built it.)

According to the Internal Revenue Service (IRS), you do not have to report the sale of your home on your tax return unless:

You have a gain and you do not qualify to exclude all of it, or
You have a gain and choose not to exclude it.
Otherwise, you must report the gain on Form 1040, Schedule D.

As with any tax information, your personal situation (including such things as divorce) can have major tax implications. And since IRS tax rules change often, you'll want to be sure to consult with a qualified tax specialist.

Disclaimer: These are general guidelines and provided for information only. Other IRS rules may apply. Consult with your accountant, CPA or tax attorney for professional advice.

For more information on this topic or any other Real Estate matters feel free to e-mail JR at c21jrs72@aol.com

For Buyers

2009-03-16T21:00:00.001-05:00

Loan Process
Loan Application
If you're like most people, you'll probably need to secure a mortgage loan for your new house. Application for a home loan can take as little as one week and up to a month, depending on the type of mortgage.

Your lender or mortgage broker will be able to give you a better idea of the actual time it will take from application to approval. However, in general, conventional loans are processed more quickly than FHA or VA home loans.

Read more about types of mortgage loans.

The following is a step-by-step outline of what to expect during the loan application process:

1. Application
Bring all required documentation. (Also, see the Application Checklist.)
Good Faith Estimate of Closing Costs
Truth-in-Lending statement

2. Processing
Verification of employment
Verification of deposits
Credit report

3. Underwriting
Clear conditions

4. Purchase Homeowner's Insurance

5. Escrow
Determine funds needed for closing
Schedule appointment for closing
Prepare deed and mortgage note
Closing and Title Transfer

Application Checklist

To speed up the application process, bring the applicable following items to your loan application appointment.

Signed copy of Purchase Agreement plus all Addendums.
Tax and Legal description on subject property.
Residence addresses for the past two (2) years.
Past two years' W-2 statements or 1099’s.
Computer generated paycheck stubs for last 30 days.
Names, addresses and phone numbers of Employers for past two (2) years.
Past two (2) month’s statements for all Checking, Savings, IRAs, 401Ks, Money Markets, Profit Sharing and evidence of Stocks and Bonds. Document all recent large deposits.
In income received for commissions, bonuses, partnership(s), corporation(s), or if self-employed, requires two (2) year’s Personal Federal Tax Returns with all Schedules along with a current P&L Statement and Business Balance Sheets and past two (2) years’ Partnership and/or Corporate Returns, if applicable.
Cancelled checks from rent or mortgage for the last 12 months, and name and address of any landlord(s) within the last 12 months.
Names, addresses, account numbers, monthly payments and balances on all open loans and revolving credit accounts.
Copy of Bankruptcy Petition listing all creditors and copy of Bankruptcy Discharge Papers (if applicable). Please provide letter of explanation as to why the Bankruptcy occurred.
Copy of Driver’s License and Social Security Card (VA Loans Only).
Certificate of Eligibility and DD214 Discharge Paper (VA Loans Only).
Application fee (check or money order).
Copy of divorce decree and/or separation agreement.
A "Friend of the Court" letter stating the amount of any alimony/child support payments and notification that the account is current.
1040 tax forms (if you’re self-employed) for the past two years, 1120 Corporate Tax Returns (or Form 1065 for Partnerships) for the previous two years, year-to-date profit-and-loss statement and balance sheet signed by your accountant.
1040 tax forms for the past two years (including schedules) if you own income properties or if your income is based on commission or bonuses.
Fortunately, as you work one-on-one with your chosen home mortgage consultant, he/she should be able to offer valuable lending expertise and advice and answer all your questions while ensuring that your loan application process progresses as smoothly and quickly as possible.

Century 21 JRS Realty is affiliated with Century 21 Mortgage, LLC

Buy or Sell First?

2009-03-15T20:19:00.000-05:00

Buy or Sell First

Which Comes First: Selling or Buying?

Like the proverbial chicken and the egg, the question of "which comes first?" – in this case, the sale of your existing home or the purchase of your new home – can leave you scratching your head.

The answer to that age-old question depends on you and your individual situation. Evaluate each of your alternatives, taking into consideration the effect each scenario will have on your (1) finances, (2) negotiating position and (3) moving-day timeline.

Buying before selling
If you choose to buy a new home before you sell your current home, you may have to pay on two mortgages until your former home sells. A bridge loan can ease the strain of double mortgage payments; however, you generally must have sufficient equity in your current home to qualify.

Of course, you could make the purchase of your next home dependent upon the sale of your current home, and your Century 21 JRS Realty agent can write this contingency into your purchase agreement.

A strong housing market may mean that the seller will not be as likely to accept such an offer. The advantage of buying a home before you sell your current one is that you have more time to look for your new home – without the added pressure of moving.

Selling before buying
You may be in a stronger bargaining position for your new home if you put off serious home shopping until after you've accepted an offer on your current house. If you wait, you'll have a better idea of how much equity you can put into your next house and, more importantly, you won't have to make the purchase of that home contingent upon the sale of your old one.

Of course, there's the added pressure of needing to find a new home quickly. You may not be able to negotiate a lower purchase price if the seller knows you have time constraints.

In the end, only you can decide. Be sure to talk with your Century 21 JRS Realty agent. S/he's trained and experienced in helping you explore and narrow your options, as well as understand the "why and wherefore" of most home-related dilemmas, including buy first/sell first.

Neyland's Football Maxims

2009-03-14T21:17:00.000-05:00

GENERAL NEYLAND’S
MAXIMS OF FOOTBALL
1. The team that makes the fewest mistakes will win.
2. Play for and make the breaks and when one comes your
way - SCORE.
3. If at first the game - or the breaks - go against you, don’t
let up...put on more steam.
4. Protect our kickers, our QB, our lead and our ball game.
5. Ball, oskie, cover, block, cut and slice, pursue and gang
tackle... for this is the WINNING EDGE.
6. Press the kicking game. Here is where the breaks are
made.
7. Carry the fight to our opponent and keep it there for 60
minutes.

Learn & Earn from Lost Listings

2009-03-14T09:51:00.001-05:00

Learn & Earn from Lost Listings

If you do this you can make much more money over the long haul then you think. For 13 years in the business I have not found anyone that does this consistently or correctly.

OK here we go. In a given year you will not sign up every listing that you do a cma for, but there is still a huge potential for 2 things to happen. First, you can learn from your appointment, better yourself, and sign up the next listing appointment you attend because of what you learned. Second, you can make an impression on the sellers so that if they do not sell through the Realtor they chose you will certainly sign it up when it expires. If you do enough prospecting, like 80% of every day as you are supposed to, you will go on many listings appointments in your career. If you are a top agent you will sign up 80% to 90% of them, that's if you are a top agent. Statistically most agents are not TOP agents. So this means in a given year there are a number of listings you do not sign up, and some of them will not sell with the Realtor you lost out to. This number gets very large when added up over an entire career. How can you make sure to sign them up after they do not sell the first time around?

Here is all you have to do. You need to learn, and improve from every appointment...but how? The first way is by calling the seller and asking what made the difference, is there anything you could have done differently, what do you need to improve on, wish them luck with the sale, and extend an invitation to them to call you if they have any questions along the way. This needs to be done in a very polite, humble way, because you are trying to better yourself in your career and learn from every experience and you need their help to do that. Next, you follow up your call with a hand written thank you note and two business cards inside. You will write inside what you said over the phone, you wish them the best, and let them know they can call you at anytime for anything. Simple right, here's why it works.

First of all, not many agents will make this type of follow-up phone call for the purpose of learning and improving. If an agent did make a follow-up phone call it would be a bitter call that probably would not be handled in the right way and might go south because of emotion. Second, if you are polite and humble enough you will make an impression on the seller that is positive, and who do you think they are going to think of if they are not happy or they expire? Finally, if you can show their home or get a listing in their area during the time their home is on the market, you have the opportunity for another contact with a just listed post card and a showing appointment. Then, when your listing sells before their home sells you will have yet another contact with a just sold card. If you follow these steps you can sign up many homes on the rebound and continue to service your area and become the local leader in your market. For more information on this system please feel free to e-mail me at c21jrs72@aol.comor visit my company website and read one of the many guides we have posted for sellers and buyers, just visit www.c21jrs.com.

Will This Help Our Industry?

2009-03-11T20:06:00.001-05:00

Mortgage Bailout to Aid 1 in 9 U.S. Homeowners
By MICHAEL M. PHILLIPS and RUTH SIMON
WASHINGTON -- The Obama administration announced details of a housing-rescue plan it said would help as many as one in nine homeowners, from low-income Americans struggling to avoid foreclosure to well-off borrowers who owe more than their homes are worth.
The announcement came two weeks after President Barack Obama said he would spend $75 billion on the housing component of an emergency economic plan that includes a financial-system bailout and a $787 billion spending-and-tax-cut package.
View Interactive
Some Win, Some Lose
See how new measures will affect some homeowners across the country.
Homeowners Size Up Housing-Aid Plan
Q&A: Guide for Homeowners
Summary: Treasury guidelines, fact sheet
Question of the Day
Vote: How would you gauge Obama's homeowner-rescue plan? Fair Not fair
Join the discussion.
The package represents an effort to tackle the political challenges inherent in any housing rescue. While the administration wants a sweeping program that would prevent millions of foreclosures, it doesn't want to be seen as rewarding the greedy or reckless.
"It is imperative that we continue to move with speed to help make housing more affordable and help arrest the damaging spiral in our housing markets, just as we work to stabilize our financial system, create jobs and help businesses thrive," Treasury Secretary Timothy Geithner said in a written statement.
The administration, which was criticized for its rollout of its financial-sector rescue last month, got a generally warmer reception for the details of the foreclosure program. The Dow Jones Industrial Average rose 149.82 points, or 2.2%, snapping a dismal losing streak in recent days.
It remains uncertain how successful the administration will be in overcoming one of the biggest problems to forestall private efforts to fix troubled mortgages: the objections of investors who own mortgage-backed securities.
The administration estimates the new plan will cover as many as nine million mortgage holders. It has two main components.
First, the government will offer financial incentives and subsidies to persuade mortgage-servicing companies to ease up on borrowers who are in financial straits so severe that they risk losing their homes. Borrowers will have to sign affidavits attesting to their financial hardships. In return, they will see their interest rates drop to as low as 2%, their payment periods lengthened, and other modifications aimed at bringing their monthly payments to 31% of their income -- commonly considered a reasonable ratio. This program will be limited to first-lien mortgages with outstanding principal balances that don't exceed $729,750, in the case of single-family homes.
Welsh for The Wall Street Journal
POTENTIAL WINNERS: Nelia Price, with her son Ralph, in front of their home in Modesto, Calif., could be eligible for a loan modification.
Loan-servicing companies will receive up to $3,500 from the government to participate, with the government also matching a portion of the lenders' costs, dollar-for-dollar. Homeowners will get as much as $5,000 apiece in federal money to reduce their outstanding balances, as a way to encourage them to stay current on the modified mortgages.
Administration officials made a point of noting that the loan-modification program will not aid people who bought homes merely as investments; the program is designed for those who live in their homes.
In coming weeks, the administration plans to announce how it will help servicers persuade creditors holding second loans on the same properties to extinguish those debts. Roughly half of delinquent subprime borrowers also have second mortgages, according to Credit Suisse Group. Thus far, that has proved an impediment to modifying mortgages.
The second main component of the plan calls for Fannie Mae and Freddie Mac, the government-backed mortgage giants, to refinance loans for millions of borrowers who may owe more than their homes are worth, even if they are wealthy enough to afford their current payments. There is no income ceiling for beneficiaries. But they must have mortgages held or guaranteed by Fannie Mae or Freddie Mac, and they cannot owe more than 105% of the current value of their home.
That raises the possibility that homeowners considered well-off by national standards may qualify for public aid.
A Treasury spokeswoman said that there are benefits to helping some well-off homeowners. "The recent decline in home values has left many responsible borrowers, through no fault of their own, in a position where they can't take advantage of today's low rates through a refinancing," she said. "It is in the best interest of American homeowners to be able to refinance to lower-rate mortgages. And this, in turn, is good for home prices, for consumer spending during a downturn, and for liquidity in our mortgage markets."
At the end of last year, an estimated 13.6 million U.S. borrowers owed more on their homes than their properties were worth, according to Moody's Economy.com, up from 11.8 million at the end of the third quarter.
The release of the government's new guidelines will likely accelerate efforts already under way at the nation's largest banks all have unveiled loan-modification efforts over the past few months. They instituted foreclosure moratoriums after the government announced that it, too, was preparing to tackle the issue. They will likely soon resume foreclosing on properties that they have determined aren't eligible for loan modifications.

Many banks, which had worried about possible hits to earnings when the plan first was announced, welcomed it on Wednesday. "The plan appropriately balances the interest of homeowners, mortgage servicers and investors," said Jamie Dimon, chief executive of J.P. Morgan Chase.
Some investors who own mortgage securities, however, remained skeptical.
Under the loan-modification plan, a hypothetical borrower earning $4,000 a month, with a $225,000, 6.5% loan with 28 years remaining, could see the rate fall to 2.73%, and the monthly payment drop to $1,240, from $1,737, according to Thomas Lawler, an independent housing economist. The government would cover about $155 of the $495 payment reduction. Principal payments and federal subsidies would reduce the outstanding balance to $193,000 after five years. Without the federal program, the principal would have fallen to $208,000, assuming the borrower kept current.
Mortgage Bankers Association President John Courson said that the Obama program, by setting an industry standard, will help servicers, who are hired by investors to collect mortgage payments each month, defend themselves against complaints that they aren't acting in investors' interests by modifying loans. But Mr. Courson added that servicers might be reluctant to act without congressional protection from lawsuits.
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Treasury Secretary Timothy Geithner testified Wednesday in front of the Senate Finance Committee.
The administration is "not going to see eye-to-eye" with some investors, said a senior Treasury official. "Our role is not to use taxpayer resources to bail them out."
Citigroup will apply the new program to all loans held by investors, "unless there's a contractual obligation that specifically prohibits us from doing that," said Sanjiv Das, chief executive of the bank's CitiMortgage unit.
Bank of America "will work with our investors to allow these programs to be extended for borrowers whose loans they own," said spokesman Dan Frahm.
Calls from borrowers interested in loan modifications "really spiked" on Wednesday, said Barbara Desoer, Bank of America mortgage president.
Administration officials acknowledged that it could take time for troubled borrowers to move through the system. "People need to be patient and understand that servicers are likely to get lots of telephone calls and lots of inquiries," a senior White House official said.—Robin Sidel and James R. Hagerty contributed to this article.

Who is responsible for your SUCCESS?

2009-03-11T09:38:00.002-05:00

Who Is Responsible for your Success?
This isn’t a trick question.
Certainly you know the answer—the person who has been responsible for the life you live right now: YOU.
Everything about you is a result of your doing or not doing... Your income. Debt. Relationships. Health. Fitness level. Attitudes and behaviors.
I think everyone knows this in their hearts, but often times people convince themselves into thinking that external factors are the source of their failure, disappointment, and unhappiness.
External factors do not determine how you live. YOU are in complete control of the quality of your life.
When I hear people complain about the state of their life (be it their problems with personal finances, weight, their jobs, or general dissatisfaction) I like to help them see things differently.
If they feel “stuck” and unable to move forward for whatever reason, I ask them to scrutinize both what is working well and what isn’t working well in their life and see how they’ve arrived at where they currently are.
For example, if a woman tells me she’s unhappy with her weight—she travels frequently, and has no to time to exercise or seek healthy foods—I point out that her weight is not a result of her travels and schedule. It’s an outcome of what she chooses to eat and how she chooses to move, regardless of her daily agenda. Why not make a conscious effort to pre-plan healthy meals and snacks, even if it’s on the go, and sneak in 10 minutes here and 10 minutes there to be physically active (hey, I know some frequent flyers who make it a habit of running through airports!).
If you’re frustrated with any area in your life, then it’s time to take a little inventory. Certainly there are wonderful things happening, whether it’s your job, your romantic relationship, your children, your friends, or your income level. Your accomplishments are just as important as your missteps.
First, congratulate yourself on your successes; and then take a look at what isn’t working out so well. What are you doing or not doing to create those experiences?
Watch out! If you find yourself beginning to complain about everything but the choices you’ve made, then you need to take a step back. See if you can stop blaming outside factors for your unhappiness.
When you realize that you—and only you—create your experiences, you’ll realize that you can un-create them and forge new experiences whenever you want.
How empowering is that!
You must take responsibility for your happiness and your unhappiness, your successes and your failures, your good times and your bad times.
All too often we choose to claim the successes and blame the failures on others or other circumstances. When you stop blaming, however, you can take that energy and redirect it to focus on shaping a better situation for yourself. Blaming only ties up your energy. Imagine roping all the energy into a positive effort.
Some ideas to make this happen:
Believe, Believe, Believe! Have unwavering faith in yourself, for good and bad. Make the decision to accept the fact that you create all your experiences. You will experience successes thanks to you, and you will experience pain, struggle, and strife thanks to you. Sounds a little strange, but accepting this level of responsibility is uniquely empowering. It means you can do, change, and be anything. Stumbling blocks become just that—little hills to hop over.
Take no less than 100% responsibility. Successful people take full responsibility for the thoughts they think, the images they visualize, and the actions they take. They don't waste their time and energy blaming and complaining. They evaluate their experiences and decide if they need to change them or not. They face the uncomfortable and take risks in order to create the life they want to live.
Stop complaining. Look at what you are complaining about. I’m fat. I’m tired. I can’t get out of debt. I won’t ever get a better job. I can’t stand the relationship I have with my sister. I’ll never find a soul mate in life. Really examine your complaints. More than likely you can do something about them. They are not about other people, other things, or other events. They are about YOU.
Make an immediate change. Are you unhappy about something that is happening right now? Make requests that will make it more desirable to you, or take the steps to change it yourself. Making a change might be uncomfortable for you. It might mean you have to put in more time, money, and effort. It might mean that someone gets upset about it, or makes you feel bad about your decision. It might be difficult to change or leave a situation, but staying put is your choice so why continue to complain?
You can either do something about it or not. It is your choice and you have responsibility for your choices.
Pay attention. Looking to others for help and guidance is helpful, but don’t forget to stay tuned in to yourself—your behavior, attitude, and life experiences. Identify what’s working and what isn’t. If you need to, write it all down. Then…
Face the truth and take action for the long term . You have to be willing to change your behavior if you want a different outcome. You have to be willing to take the risks necessary to get what you want. If you’ve already taken an initial step in the right direction, now’s the time to plan additional steps to keep moving you forward, faster.
Isn’t it a great relief to know that you can make your life what you want it to be? Isn’t it wonderful that your successes do not depend on someone else?
So if you need just one thing to do different today than you did yesterday, make it this: Commit to taking 100% responsibility for every aspect of your life. Decide to make changes, one step at a time. Once you start the process you’ll discover it's much easier to get what you want by taking control of your thoughts, your visualizations, and your actions!
-Jack Canfield

What should my Budget for a Home be?

2009-03-09T11:26:00.001-05:00

Figuring Your Housing Budget
Have you ever shopped for clothes, furniture or gifts without a budget and later found that you'd overspent? It's easy to do especially when looking at so many great houses with your agent. Obviously, staying on budget is very important when house hunting.
That's why you'd probably like to have a ballpark idea of how much house you can afford - before you start looking and even before meeting with your mortgage broker or lender.
To get a rough estimate of how much you'll qualify for, do what the lenders do – plug your budget numbers into a basic mortgage calculation formula.
Lender FormulasLenders typically use one of two formula guidelines; although most will require that you meet both sets of guidelines. Even if you don't meet the guidelines, talk with your chosen home mortgage consultant. S/he can provide additional details specific to your situation, and since there are other formulas that exist, you may qualify under another standard. For example, VA loans are calculated on a single ratio that's based upon mortgage payment and all debts. If you have very little debt, this formula may allow you to qualify more easily for a more expensive home.
Of the two usual formulas, the first compares income-to-housing costs (without including long-term debts), while the second includes all debts.
28 Percent Formula
Total monthly housing costs (P.I.T.I.) = 28 percent (or less) of gross monthly income.
36 Percent Formula
P.I.T.I. + all monthly debts = 36 percent (or less) of gross monthly Income.
So, if you're a family with a monthly gross income (before taxes) of $3,500, you would multiply $3,500 by 28 and 36 percent. The result shows that you might qualify for a home mortgage with monthly payments between $980 and $1,260 a month.
Note that these percentages may be slightly less if you have long-term debts (more than eight months) or alimony/child support payments. The number and ages of your children as well as household budget items may also have an impact.
Now that you have a better idea of what your approximate housing budget may be, learn more about:
Types of Loans
Mortgage Strategies
The Loan Application

Doom & Gloom.....Fact or Fiction?

2009-03-09T08:20:00.003-05:00

We Must Get Ratings!!!!!!
That is the way I see our media outlets, we must get ratings at all costs. I would have to be a moron to say the economy is not down. We all have seen the latest unemployment rate over 8%, we know that in the last year over 4 million jobs have been lost....and we know ONE more VERY important thing.......THINGS WILL GET BETTER!!!!!! Whether you voted for our president or not, as an American, you must have blind faith and trust the people in charge of our country. We have to have faith that they have the country's best interests in mind with every decision they make. The media wants to shock us with sensationalism and big bold headlines that make us watch their channel just to be more depressed by the DOOM and GLOOM they spew. We don't need the media to tell us the economy has gone in the crapper, just talk to your friends that have lost their jobs. We just went through one of the most prosperous periods of gluttony and excess our country has ever seen. Should we not pay the price now? Yes, we are now paying the price for the excess of living off your homes equity, evil mortgage companies that cared only about "loan the money", and sell it to someone else.I am writing this post because in my company I just had 4 agents go up against multiple offers on homes in Union and Middlesex County New Jersey. So how bad is Real Estate? Yes, now banks are not just going to throw bad money out the window if you have a pulse.Yes, the prices of homes have fallen. Yes, you have to be worth the risk in order to be loaned money. When my parents were growing up, they knew only one way to buy a home..save 20% for a down payment and qualify for a conventional loan. You were made to care about your home because you WORKED to earn the RIGHT to purchase a piece of the AMERICAN DREAM. You appreciated your home because you earned it. The generation after the baby boomers only knows excess and should be called the "I must have it NOW!" generation...and I am a part of that generation. But I also have the courage to take responsibility for my actions and stand up for what I believe in. How is a generation of kids supposed to survive in this America, when all they see every day are sports stars, and actors, and rappers making more then teachers and our own President. A half a billion dollars to play baseball, are you kidding me? What does that say to our young people about what is important in this world? I know only Real Estate sales. It has been in my family for 40 years and it is the only thing I know. Accept for this...if you are given something for nothing it will mean NOTHING to you.Place the Blame for this economic crash in the right place. Who was president when the no money down loan came to be? Who was president when 3% down and 5% down loans came to be? Not George W Bush, that's for sure.All I am saying is as a country we got our selves into this mess and we WILL get ourselves out of it...TOGETHER. For all the Realtors out there struggling, just keep on making the contacts daily, meeting people daily, and working a little bit harder everyday. Remember, the contacts you make in these lean years will turn into $$$$ when things turn around. Don't listen to the news, tell people about the positives. Rates are low, there are more homes to choose from, you are able to buy a home cheaper then your neighbor did just a few years ago. Those 3 things sound like potential for a good market. The daily activities of a successful Realtor have not changed, make contacts everyday. That task does not change with the rise and fall of the economy. The only thing that changes is the value of homes and the time it may take for your listing to turn into money in your bank account. Listings will always and forever be the name of this game, and the amount of contacts you make everyday will determine the amount of listings you sign up.
For more information from JR Sangiuliano of CENTURY 21 JRS Realty feel free to E-mail him at c21jrs72@aol.com or visit his Company Blog at http://www.century21jrsrealty.blogspot.com/

How to get a Mortgage

2009-03-08T14:34:00.002-05:00

The Loan Application
If you're like most people, you'll probably need to secure a mortgage loan for your new house. Application for a home loan can take as little as one week and up to a month, depending on the type of mortgage.
Your lender or mortgage broker will be able to give you a better idea of the actual time it will take from application to approval. However, in general, conventional loans are processed more quickly than FHA or VA home loans.
Read more about types of mortgage loans.
The following is a step-by-step outline of what to expect during the loan application process:
1. ApplicationBring all required documentation. (Also, see the Application Checklist.)Good Faith Estimate of Closing Costs Truth-in-Lending statement
2. ProcessingVerification of employmentVerification of depositsCredit report
3. Underwriting Clear conditions
4. Purchase Homeowner's Insurance
5. EscrowDetermine funds needed for closing Schedule appointment for closing Prepare deed and mortgage note Closing and Title Transfer
Application Checklist
To speed up the application process, bring the applicable following items to your loan application appointment.
Signed copy of Purchase Agreement plus all Addendums.
Tax and Legal description on subject property.
Residence addresses for the past two (2) years.
Past two years' W-2 statements or 1099’s.
Computer generated paycheck stubs for last 30 days.
Names, addresses and phone numbers of Employers for past two (2) years.
Past two (2) month’s statements for all Checking, Savings, IRAs, 401Ks, Money Markets, Profit Sharing and evidence of Stocks and Bonds. Document all recent large deposits.
In income received for commissions, bonuses, partnership(s), corporation(s), or if self-employed, requires two (2) year’s Personal Federal Tax Returns with all Schedules along with a current P&L Statement and Business Balance Sheets and past two (2) years’ Partnership and/or Corporate Returns, if applicable.
Cancelled checks from rent or mortgage for the last 12 months, and name and address of any landlord(s) within the last 12 months.
Names, addresses, account numbers, monthly payments and balances on all open loans and revolving credit accounts.
Copy of Bankruptcy Petition listing all creditors and copy of Bankruptcy Discharge Papers (if applicable). Please provide letter of explanation as to why the Bankruptcy occurred.
Copy of Driver’s License and Social Security Card (VA Loans Only).
Certificate of Eligibility and DD214 Discharge Paper (VA Loans Only).
Application fee (check or money order).
Copy of divorce decree and/or separation agreement.
A "Friend of the Court" letter stating the amount of any alimony/child support payments and notification that the account is current.
1040 tax forms (if you’re self-employed) for the past two years, 1120 Corporate Tax Returns (or Form 1065 for Partnerships) for the previous two years, year-to-date profit-and-loss statement and balance sheet signed by your accountant.
1040 tax forms for the past two years (including schedules) if you own income properties or if your income is based on commission or bonuses.
Fortunately, as you work one-on-one with your chosen home mortgage consultant, he/she should be able to offer valuable lending expertise and advice and answer all your questions while ensuring that your loan application process progresses as smoothly and quickly as possible.
Century 21 JRS Realty is affiliated with Century 21 Mortgage, LLC.