As we start a brand new year, let's not forget to set aside time for our volunteer work. REALTORS are some of the most caring and giving people I know and we give back to our communities, to the country and to the world. We are over 1.2 million strong and we make a difference in the lives of so many people.

I would love to hear some of the ways that you spread the REALTOR spirit with your volunteer time.  Sharing your passion may just spark an interest in another to join in. It does not take much to make a difference to someone less fortunate and that will come back to you many times over.

I love Habitat For Humanity. Years ago I thought about how cool it would be to help build a home with Habitat, but like so many I thought it was far beyond the reach of just the average person. After all, Jimmy and Rosalyn Carter were all I knew of Habitat and surely I could not do what a former President was doing. But one day I was at a REALTOR event and was talking with a broker friend, noticing that he had a Habitat shirt on. In passing I mentioned that I would love to volunteer with Habitat. Well, that was all it took. He said that they had a mission trip going to The Gulf Coast in a few weeks and asked if I would like to go. WOW, was it really that easy! You bet it was, and our group has gone in March and October every year. We start planning our next trip before we even finish the one we are on. We have become a family, we text, we Facebook, we share the photos, we share our stories. We go back to see the houses we started to see if the family is in them yet. We visit with some of the families that we have come to know, many of them are on the jobsite with us putting in their hours that they are required to do. Some fix lunch for us on our last day, and we have had the privelege of taking part in the blessing of their homes before we leave. PRICELESS!

I believe the volunteer spirit is part of who you are, maybe it is in your upbringing. I was visiting my MOM recently and I noticed a certificate on the wall from The Veterans Hospital in Leavenworth Kansas (my hometown) I do not remember the exact number of hours, but it was an incredible amount of hours that she had volunteered for over 50 years. She can no longer do it, she is 90 and has Alzheimers, and her memory is failing. But when I showed it to her her eyes lit up and she proudly told me about her work and that she still goes to "122"(I think it was the psyc ward) once a month to take cookies and play cards with the vets. She has not been there in probably 10 years but in her mind she has. Incredible! So if you think that your volunteer work will not become a part of you and stay with you forever, remember my MOM.

What is or what will your volunteer passion be? 

Happy New Year!!!

What is a short sale?  First and foremost, it may be a viable way to avoid a foreclosure.  More specifically, for the homeowner who can no longer make their mortgage payment because of a real hardship, i.e. job loss, job transfer, divorce, or an adjustable rate mortgage (ARM) that is resetting at a higher interest rate, a Short Sale may be an option for the homeowner worried about foreclosure.  A Short Sale is a detailed but fairly straightforward process that can work to benefit Buyer, Seller and even the Lender. The Buyer gets a home for a good price, the Seller gets to avoid the disruption of a foreclosure and a serious “hit” on their credit rating, and the Lender avoids the delay and expense of foreclosing on a property they don't want to own.  (A REALTOR® may be able to help you decide if a short sale is a viable option.)

Even though Short Sales have been a staple for investors for some time, until recently, most homeowners probably thought the only option was letting the Lender foreclose.  However, a foreclosure may stay on your credit record for 7 to 10 years, which is why some experts are now advocating a Short Sale.  If your Lender agrees to a Short Sale, you may then hire a REALTOR® to find a Buyer for the house; you may accept an offer for less than is owed to the Lender, the Lender may then agree to absorb some or all of the loss (the Lender may still demand the homeowner share in the loss.)

Before submitting an offer, the REALTOR® will first perform a Comparative Market Analysis (CMA) to determine the price at which similar properties are being marketed, and the average price of those that have sold recently.  This information is submitted to the Lender along with a hardship letter from the Seller explaining why they cannot continue to pay the mortgage, plus supporting documentation such as tax returns, bank statements, and information and photos of the home.  The way mortgages are sold, the Lender can be anywhere in the country and certainly not aware of local real estate conditions.  (This is when the REALTOR® can become your local market expert and your staunchest advocate.)

The Lender may then order an appraisal or a Broker Price Opinion (BPO) from an independent party.  This appraisal or BPO is the key to the whole process. If the property is valued too high, the Lender may not accept a low offer.  Often Lenders will accept an offer lower than the BPO, but usually not much more than 10% lower, though that may vary depending on the company and perhaps the circumstances.  The sales contract should specifically disclose to all parties that the offer is contingent on the Lender accepting the net proceeds of a Short Sale offer.  In fact, if the property is listed for sale by a REALTOR®, the listing must disclose that the property may become a Short Sale and that the offer is subject to Third Party Approval. 

 The homeowner should display a genuine desire to get a grip on spending and finances when attempting to negotiate a Short Sale.  One way to show good faith is to scale back spending.  Charging expensive jewelry on a credit card for example, may cause a Lender to be less inclined to do a homeowner any favors on the sale of a home.

On the down side, this process does take time, and a response from the Lender may take months. Expect at least 2-3 months or longer before a Short Sale can be finalized, even if the Lender accepts the first offer.  If they do not accept the first offer, the Lender may wait to see if other offers are forthcoming.  Often, the Lenders are not communicative during this waiting period as the decision-making process goes behind closed doors with anonymous number-crunchers.  (The homeowner should contact the Lender at the beginning of the process and introduce his/her REALTOR® to open the lines of communication.)

If the property is an investment and not the Seller’s primary residence, the IRS may treat the amount of the mortgage that is forgiven by the Lender as taxable income and the Seller may need to come up with the cash to cover the taxes.  (The homeowner should contact an accountant for any tax information or assistance.)

While the Short Sale may be a viable option for homeowners facing hardship, the better option of course, is to find some way to stay in the home and to get caught up on mortgage payments.  One of the first steps is to determine if the Lender is willing to restructure the loan, or forego a couple of monthly payments to help a homeowner get back in good standing. Apparently, more and more Lenders are willing to make accommodations to avoid taking the property back.  Lenders hate to take over homes, especially in a declining market, so if a Short Sale seems to be in your future, you shouldn’t under-estimate the willingness of your Lender to make concessions.

Dan Peck, REALTOR® Manager

GRI, CRS, ABR

The Jeanne & Dan Team

RE/MAX In Action

Martinsburg, Shepherdstown, Harpers Ferry

If you have been waiting for interest rates to reach their lowest, you may have already seen it. 

 Last week a leading gauge of US home sales showed unexpected strength. April Pending Homes Sales rose 6.3%, way over expectations of a 1.0% drop! This measure of signed sales contracts registered a level of 88.2; it’s highest in six months. A 100 reading equals the average sales activity in 2001. Experts are saying the April figure suggests the pace of home sales has clearly stopped its free fall and might soon rebound. The index measures existing home sales, currently about 85% of the market.

The other economic news that was positive for housing came from Fed Chairman Ben Bernanke. In a speech Monday, he said he believes the economy is out of danger and the Fed would now pay "close attention" to inflation. Experts immediately interpreted this to mean rate cuts are officially over. Some feel a hike may come as soon as August and many consider a 0.25% increase likely for October. This is good news because while the Fed was in rate trimming mode, many potential homebuyers stayed on the sidelines, waiting for rates to fall more. Now they need to get back in the game and make sure they don't wait and get caught with rates climbing back up! 

As Broker and Owner of three RE/MAX franchises Jeanne Kozak has established herself as one of the top real estate professionals in the area.  Jeanne’s designations and awards are numerous, providing proof of her commitment to excellence.  Last Thursday evening, at the Eastern Panhandle Board of Realtors’ annual Awards Banquet held at the Clarion Hotel and Conference Center, Shepherdstown, Ms. Kozak was awarded Top Producer status for the 16^th consecutive year.  In addition, she was sited for her work as Chairperson of the building committee and a four-year project which resulted in EPBR’s new, modern office facility on Randolph Street in Martinsburg.

Perhaps the honor Ms. Kozak is proudest of, however, is the Carol Snyder Memorial Good Neighbor Award which was presented to Jeanne for outstanding service to clients, the community (both locally and nationally) and her profession.  A few of the many good deeds mentioned are her semi-annual trips to the Mississippi Delta region to build houses for Habitat For Humanity, a fund raiser for The Family Readiness Group in support of the local Air National Guard and Army National Guard bases, and her many acts of kindness to those in need.

Jeanne. Kozak places a great priority on results and getting things done.  Highly recognized for this by her peers, Jeanne is currently serving as President Elect of The Eastern Panhandle Board of Realtors where she participates on several committees.  She also serves on the Board of Directors of the West Virginia Association of Realtors.

Originally from Kansas, Jeanne relocated to West Virginia and entered the banking industry in the early 80’s.  Later she and her husband started a new homes construction company for which Jeanne still holds a West Virginia Contractor License.  This was the perfect blend of careers and experiences to prepare Jeanne for her third and present career in real estate.  Her will to succeed was apparent from the start, with Rookie of the Year honors bestowed upon her in 1991.

Jeanne admits she struggles to find personal time, but whenever possible she enjoys relaxing at home with her Jack Russell Terriers, attracting bluebirds and purple martins to her feeders and nest boxes, and working in her gardens.

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Tired of hearing negative news about real estate, and market bashing by the media? Well, it is up to us to refuse to be brought down by all of the negativity.  Come, join me in taking a new perspective and let's focus on some positive news. The markets in many areas of our country are bottoming out. Buyers are perceiving that the time to get off the fence is now and they ARE buying. Being realistic, we know that prices are not going to turn completely around in one year. However, I believe we will slowly start seeing the end of price depreciation and, most of our down markets will slowly start turning around. Within the next five years, I predict we will again see activity return to the baby boomer retirement markets, and to the warmer climates. The demand is out there still!  Sales of existing housing rose 3% in January.  See the following article I took from MarketWatch.

The increase in sales is encouraging although it's uncertain whether the positive growth rate can be maintained with the return to more-normal winter temperatures as we move into 2007," wrote Paul Ferley, an economist for BMO Nesbitt Burns. "As well, some caution is still warranted on the possibility of housing spilling over into other areas of the economy given the return to declining home prices."

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