Goldie Sommer is an attorney who has conducted over ten thousand real estate transactions during her career.
Real estate contracts can be very confusing. Many of them consist of multiple pages and contain language that is hard to understand. The key to understanding every contract and every item in the contract is preparation. If you take your time to read the contract before you sign or negotiate it, you’ll be in a much better position.
You always want to have a written contract when buying, selling, or renting real estate. There are several reasons for this. First, a contract needs to be in writing to be enforceable. This reduces the number of potential misunderstandings and issues. While you can buy a house or rent an apartment without a written contract, you can’t do anything in case the deal doesn’t turn out the way you originally thought it would. Next, covering as many issues as possible in a written contract helps all involved parties have the same understanding of the deal. Finally, you want to have a way out of the deal in case something unexpected happens.
Also Read: Goldie Sommer – Attorney and Real Estate Agent Specializes in Short Sales & Foreclosure Negotiations
Your attorney will review the contract carefully to protect your interests. If you attorney is using a preprinted form contract, is it important the form corresponds to the type of transaction that you are about to make. For example, a contract that covers a residential sale needs to have inspection and financing clauses as part of it, which experienced attorneys such as Goldie Sommer will always point out to you.
Goldie Sommer has been helping her clients short sell their homes for many years.
Buying real estate properties from distressed owners can be very lucrative, but it also comes with a number of complications and special regulations.
While someone’s foreclosure may be an opportunity for you, it is a big problem for the homeowner in distress. Some real estate investors who buy foreclosure properties use strategies that are insensitive, not tactful, disrespectful, and sometimes even outright illegal. While at times you can make a quick profit using such strategies, it is much more effective to conduct business ethically and respectfully. Many real estate investors and agents who build positive reputations while dealing with foreclosures get a lot of new business through referrals and recommendations, which makes life easier for them and their clients in the long run.
The secret to doing business with a party in distress is very simple: treat others the way you would like to be treated in a similar situation. There are several sources of leads you can use to find homeowners in distress. The first one is homeowners who fall behind on their mortgage and apply for a second mortgage hoping to catch up with their delinquent payments. Second mortgages are public records that you can use to obtain leads.
Also Read: Goldie Sommer – Dealing with Distressed Homeowners
The second source is an ad in which you can promise a fast closing and a cash transaction. You can also partner up with other house buyers and use them as a source of leads. Finally, you can get referrals from bankers, lenders, and your professional network, which can be very large if you spend as much time in the industry as Goldie Sommer did.
Goldie Sommer is an attorney and a real estate agent who specializes in short sales and foreclosure negotiations.
If you own a home, it is usually easy to borrow money using the home as collateral. It is also relatively easy to borrow money when buying a home. Banks are willing to lend a bigger percentage of the asking price to residential property buyers than to commercial property buyers because of the lower risks. Sometimes it is so easy to borrow money that homeowners borrow more money than they can pay back to the bank. A person may also lose his or her job, face a medical condition, or a number of other unfavorable life circumstances. When a homeowner stops making payments, both the homeowner and the bank have a problem.
Banks and other lenders are not interested in foreclosing properties. They are not in the property management business. They are in the business of lending money. In many cases, banks lose money when they foreclose loans. They then need to maintain the property, before selling it, which is also not something they are interested in doing.
When a homeowner loses a house in foreclosure, his or her credit score takes a big hit. When the homeowner can borrow again, the interest rate is usually much higher than before. Banks view loans to those who had a foreclosure in the past as extremely risky. This being said, the homeowner may not practically experience the negative effects of foreclosure on the credit score for some time. However, the effects of losing a family home and having to move abruptly are usually traumatic to any person.
Regardless of the reasons for the foreclosure, the key to a successful transaction is how you deal with the distressed owner and the issue. This is something Goldie Sommer experienced time and time again during her career.