Real Estate Update

Steve Gillman asked:




Rezone a property and you can instantly make it more valuable. Of course, zoning is not your decision, and there is no guarantee that you can get a property rezoned. There are some ways to make it more likely, however.

Rezoning can instantly increase or decrease the value of a property. The value of real estate is not determined just by where it is located and what is on it, after all. It is also a matter of what the owner can legally do with the property. For example, I have even seen small lots in mobile home subdivisions sell for more than bigger pieces of land nearby, just because there were so few places where the zoning allowed mobile homes.

A house on a small lot might be worth $90,000 if it can only be used as a rental or as an owner-residence. But that same piece of land might be worth $150,000 after the house is torn down – if it is zoned to allow a store in its place.

The idea, then, is to buy a property, and request a new zoning designation which makes it more valuable. If you can get the zoning changed, you can then resell the property for a profit. And if that sounds too easy, you are right. It takes some work.

Start by finding properties that are on the edge of better zoning, or even mixed in with properties that have a more valuable zoning. Often an area’s zoning is changed by the authorities over time, but they don’t change the designation for all the properties. Since a property zoned residential in the middle of a business zone doesn’t make sense, getting it rezoned may involve simply asking.

The primary problem with this strategy is that there really is no guarantee that you can convince the zoning officials to zone your property the way that you want. And if you get the property zoned before you have an accepted offer, the seller will realize that the value has increased and ask more for the property. So how do you avoid the risk of buying a property that is worth exactly what you paid for it?

Do your homework, for starters. Look at the city’s master plan, to see what they expect the city to look like in the future. If the zoning you want is in line with their plan, they usually won’t refuse your request once you point that out.

Don’t expect to get a home in the middle of a single-family home subdivision rezoned for a duplex or a business. You are looking for properties which you can reasonably argue should be zoned the way you want. Other properties adjoining it should already have the zoning you want, and you are more likely to succeed if properties on two sides or more are zoned the way you want.

Another thing to watch for is what has happened with other property owner’s requests. If the local authorities have been systematically approving zoning-change requests on a given street, buy a cheap property there and get in line.

Of course, you also have to look at how much of an increase in value you’ll get with the zoning change, and how much it will cost for the whole project. A property with a ragged old house might be worth $50,000 more once it is zoned commercial, but what if it will cost $45,000 to buy it, get it rezoned, pay the holding costs, tear the house down, and sell it? I wouldn’t even consider doing a project on that narrow of a profit margin.

There are other possibilities that don’t involve selling right away, of course. If an area is changing, becoming more commercial, you might buy a little rental home that at least covers your costs every month, just to be ready when the zoning changes in a few years and the property values soar. You might also get zoning that allows you to convert a home into offices for attorneys or other professionals, and so get higher rent than from a residence.

To just buy with the expectation of getting a property rezoned is speculative to some extent. To reduce the risk, at least buy at a good price based on the current use and zoning designation. That way, if your plan falls through and you have to sell for close to what you paid, you’ll only lose your transaction costs.

Brian S. Icenhower asked:




Continuous declines in United States’ housing values after the mid-2000s caused an increasing number of borrowers to explore the loan modification process in an attempt to avoid losing their homes to foreclosure. Unfortunately, a large number of homeowners who sought to have their loans modified were thwarted by lengthy and impersonal negotiation processes imposed by lenders, the borrowers’ inability to qualify for modified loans, and the unwillingness of banks to modify loans to affordable levels. In addition, too many of the borrowers who were able to successfully navigate through the loan modification waters later learned that their diligent efforts were ultimately in vain as the United States Comptroller of the Currency reported that over half of the loans modified in the first quarter of 2008 went into default within six months. In order to prevent the loan modification process from beginning to resemble a futile quest for the Holy Grail, it is essential to examine some of the key issues surrounding loan modifications.

Loan Modification Goals

Generally speaking, the primary reason that borrowers seek to have their home loans modified is to reduce the amount of their monthly payments. This result can be achieved by reducing the interest rate of the loan, extending the repayment period of the loan, preventing an interest rate from adjusting upward, reducing the principal balance owed, eliminating a negative amortization term, adding delinquent payments to the balance, or any combination of the aforementioned. It is not surprising that the modification goal most sought by borrowers also happens to be the request lenders have been most unwilling to grant: principal balance reductions. Although reductions in balances create significant losses for banks, it should also be noted that homeowners have been generally unwilling to continue to make mortgage payments when they believe that their home’s value will not exceed the amount that they owe against the property. Therefore, the failure to reduce balances via the loan modification process, coupled with declining housing values, may account for the U.S. Comptroller of the Currency’s finding that the majority of loans become delinquent shortly after being modified.

The Process

Although loan modification procedures and requirements vary from bank to bank, the typical process begins with a borrower contacting the bank’s loss mitigation department to request a loan modification. The lender will then send a loan modification application and forms to the borrower to be completed and returned to the lender. The bank will also require other documentation to be provided by the borrower in support of the application. This documentation may include bank statements, tax returns, pay stubs, a hardship letter and an appraisal or broker’s price opinion to show the current value of the property. After all of the requested documentation has been received by the lender, a bank representative or negotiator will eventually contact the borrower to make a proposal of the new loan terms or simply reject the initial modification application altogether. The borrower then either accepts the bank’s proposal or negotiates new terms until an agreement is reached and new loan documents are formally executed. It is also advisable for the borrower to regularly contact the loss mitigation department throughout the process to ensure that all documentation is being received and that the modification request is proceeding in a timely fashion.

Obstacles to Modification

The most obvious obstacle to successfully modifying a home loan is the borrower’s inability to qualify for the new modified loan. Once again, lender eligibility requirements for modification can differ greatly. However, Fannie Mae and Freddie Mae have implemented a Streamlined Modification Plan to more effectively respond to the increasing number of loan modification requests. Under this plan, the borrower must satisfy the following criteria: 1) the borrower has not filed bankruptcy; 2) the borrower’s existing loan was originated prior to January 1, 2008; 3) the property securing the loan is owner-occupied and a single family residence; 4) the borrower is at least 90 days delinquent on the existing loan; 5) a 90% or higher loan-to-value ratio is present with the existing loan; 6) the payments after modification do not exceed 38% of the borrower’s gross monthly income; and 7) the borrower must successfully make 3 consecutive monthly payments after modification to demonstrate an ability to pay before the modification is formalized.

Also, lenders are generally under no legal obligation to modify loans for borrowers. Consequently, if a modification request becomes too cost prohibitive, banks will often take their chances with the foreclosure process instead. Lenders may also have inadequate staffing to handle the increasing number of modification requests without frequent borrower follow-up. A borrower’s property might also serve as security for more than one loan, and it can often be challenging to coordinate modification terms between multiple banks. Further, if the loan has been sold by the bank on the secondary loan market to any number of potential investors, the original loan will often be split into different fragments before pooling them with other portions of loans as mortgage-backed securities. In this case, it can be very difficult to coordinate with the many investors to obtain approval for the modification.

Finally, borrowers should be weary of a large number of fraudulent companies attempting to assist homeowners with the loan modification process. The mere fact that these companies are using seemingly reputable television commercials or websites as advertising mediums should not alleviate a borrower’s concerns. The rapidly increasing number of loan modification scam-artists has temporarily caught law enforcement off guard and it may take some time before these culprits are apprehended and their brazen actions are quelled. In the meantime, borrowers should be especially cautious when dealing with companies that demand fees in advance of any services to be provided as this practice in and of itself is prohibited by most state laws.

For further assistance with the loan modification process, it is advisable to contact an attorney or your local REALTOR®. In addition, the U.S. Department of Housing and Urban Development has a list of approved housing counseling agencies at www.hud.gov. When a borrower attempts to personally modify a home loan, it is essential to identify modification goals, understand the particular lender’s modification requirements, frequently check on the status of the application’s processing, and by very patient.

Roshan Dark asked:




It is a healthy sign that the speculator has been disappeared from the Marbella Property market for the interest of international real estate investors or homebuyers. Now, the Property market in Marbella on its knees, the prices are falling and vendors are fretful to sell. It is the main reason to attract the potential buyers from foreign countries.

Marbella Property is the best place to live in or spend your holidays and now becomes Europe’s number one popular destination to attract overseas real estate property investors to buy property here. It is located in Spain and most popular for its nice sandy beaches up and down the whole coast.     As the Marbella offers many facilities in the fields of security, infrastructure, suitability in weather and sporting, it becomes first choice for the people to visit at once in life.



It also offers a variety of concerts, superb restaurants, private and public parties, nightlife, glamour, and excitement, all year round. It holds the population of more than 250,000 people. Around the people from 45 different countries are living here with harmony and peace.

Generally, people are buying property in Marbella for their own quality of life and use. You can find the properties here for all tastes and budgets within the range starting from €250,000 to €10,000,000 for a one or two bedroom apartment. As the buying process, become easier and relatively simple, thousands of properties purchased in the category of holiday homes. Bargaining is not easy while purchasing new property in Marbella. People are finding experienced agents who have good skill for bargaining and complete their all paperwork with respect to the property. – Visit Also Cheap Spanish Property Near Land of  Marbella.