Real Estate Matters
www.reporterherald.com • Saturday, September 3, 2011 • Reporter-Herald
Know when you have cause for litigation ILYCE GLINK TRIBUNE MEDIA SERVICES
Q
uestion: My real estate agent failed to notify me of a valid bid for my property. He claimed to have opened the bid on a Sunday evening and failed to realize the bid expired on the next day at noon. He failed in other areas, as well. He inaccurately filled out the paperwork for the local Board of Realtors, put up inaccurate information on the local MLS, estimated the value of a swimming pool at $70,000 instead of the actual retail price of $46,999, and quibbled with us over whether to list a new park and library within walking distance of our property. He was even going to miss our closing. After all that, but mostly because he missed letting us know about an offer, I terminated the relationship. The new agent sold the house within 120 days, in January, during the housing and mortgage market collapse of 2010. I feel the inept agent owes me. What do you see? Answer: Maybe I'm missing something, but I wonder exactly how you've been damaged in this transaction. Did you sell the property for less than you would have with the original agent? How did you deal with the original agent through all of these mistakes? Did you go to his managing broker to complain and ask for a different agent? How did you even find the agent to begin with? Did you interview several and were you impressed with this person's results? Or, did you pick the first agent in the phone book? For a lawsuit to produce the desired results, you'd have to start by showing that you were somehow damaged by the agent's actions — and that you have a legal right to collect as a result of those actions. A litigator who specializes in real estate cases should be able to help. Question: I wrote to you a few months ago and never thought I would get a response. To my amazement, I was reading your column in Sunday's paper and you answered my letter. Since I wrote you, I was able to sell my mobile home and now have $50,000 in savings plus a 401(k) with $30,000 in it. I also have my emergency fund in place. My mortgage is approximately $600 a month with taxes. If I make an extra principal payment with each payment, I could pay this off in 15 years or sooner if I continue to work. Is this a smart move? Answer: I'm sure you would like to be able to pay off your mortgage. Unfortunately, since you don't have enough cash to pay off the home in full, and can only do so by working and saving so much of your monthly income, paying off your mortgage doesn't seem like a reasonable goal.
Refinancing can save you money
age point. In real numbers, if you had a loan for $200,000, the reduction in interest payments would roughly equate to $1,550 in the first ver the past few years, it year. seems as though everyone For many first-time home purkeeps saying, “now is the chasers, buying now could result in time to buy – interest rates couldn’t avoiding refinancing later on. be any lower.” While this statement Interest rates are still at all-time certainly applies to many first-time lows, no matter what type of buyer home purchases, you should also you are, said David Powell, managing consider this option if you already broker for Re/Max Alliance in Loveown your home. land. The refinancing business has been “There is still a lot of negative perbooming ever since the drastic drops ception out there in the media that in interest rates over the past few makes people think they can’t qualiyears — and with good reason. Fred- fy for a loan,” he said. “Yet what peodie Mac recently released in its quar- ple fail to realize is you never know terly findings on refinancing trends, for sure until you ask.” that three out of four people who rePowell adds that the low interest financed their home in the second rates, coupled with lower market valquarter were able to either maintain ues, has multiplied buying power. or lower their unpaid principal balPeople who had considered buying a ance. home just a few years ago, may now More specifically, 51 percent of all be able to qualify for a loan. “In the aftermath of our nation’s refinanced loans in the second quareconomic problems, we’ve managed ter maintained the same principal to come out ahead by finding tons of balance (meaning less than a 5 pernew ways to help folks buy a home,” cent increase of the unpaid loan Powell said. Whether it’s with down amount) and 26 percent were able to lower their principal balance. The payment assistance programs, or other options, such as no private remaining 23 percent, classified as mortgage insurance, talking to a “cash-out” refinances, increased home mortgage consultant can help their principal balance by at least 5 you determine the loan that works percent or more. Additionally, Freddie Mac’s data re- best for you. In terms of both first-time home ported that the median reduction in purchases and refinances, there’s a interest rates was about 1 percentfew things your mortgage consultant will need to know. Lenders will take many factors into consideration when prequalifying you — factors such as your credit score, your income, other assets and debt, and the value of the property are all taken into consideration. There’s also a multitude of factors that can go into your decision to refinance your home. Powell said the biggest influencing factor is always the interest rate. “No matter what type of loan you have, if you are able to lower your interest payments in any manner, you will save yourself some money,” he said. If any of those base factors have changed since you applied for your
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loan, it would be a good idea to consider refinancing. Of course, sometimes the changes in these factors may not always be in your favor. There are also other programs available, such as the government’s Home Affordable Refinance Program, that help prevent foreclosure. This program helps those homeowners who may not be able to refinance, due to decreases in home valuation and are struggling with their current mortgage payment. Powell said the best way to figure out if you can benefit for a refinance or other programs is to start shopping around. You may not always get the best deal with your current lender, and by shopping around you know you will receive the best terms possible. At Re/Max Alliance, Powell adds that their in-house mortgage services, Colorado Mortgage Alliance, are always available and willing to talk to any current homeowners about their refinancing needs. “Our team of home mortgage consultants at Colorado Mortgage Al-
liance work hard to make sure they can help all their clients as best as possible,” Powell said. He adds that CMA has access to many versatile programs, enabling them to help many people in a multitude of ways. Colorado Mortgage Alliance, now one of the largest mortgage firms spanning across the Front Range and Denver, has lenders in each Re/Max Alliance location along the Front Range in Fort Collins, Loveland, Greeley and Longmont. You can also find more information, such as current mortgage rates, refinancing calculators and more at www.coloradomortgagealliance.com Powell adds that while not everyone may benefit from a refinance, it never hurts to ask. “Based on these statistics from Freddie Mac, more people should be talking to mortgage consultants,” he said. “It would be nonsensical to not pick up the phone and talk to someone, when that phone call could save you $1,500 next year on your mortgage.”
“Based on these statistics ...
more people should be talking
to mortgage consultants.
It would be nonsensical
to not pick up the phone and talk to someone, when that phone call
could save you $1,500 next year
on your mortgage.”
— David Powell, managing broker for Re/Max Alliance in Loveland
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