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Khemson property Management
Are you in Need of a reliable
Professional property management services in Central Florida?
Khemson Property Management has provided property management services for rental properties in and near Orlando and all over Central Florida. Khemson Property Management will handle all aspects of Property Maintenance and Repairs, relieving property owners of hassles and headaches. We will ensure your valuable asset is kept well maintained
We will keep you informed of the status of your property at all times.
Have other questions and concerns
Please call us at 612-532-3151 or 920-khemson for more information
12 Reasons to Hire a Property Manager
Satyam Jagmohan-Primary Broker
If you've owned income property for any length of time, you know that managing a rental can be financially rewarding. And you likely discovered that property management requires a large commitment of time and effort.
While it may make sense to take the do-it-yourself approach if you're a handy person, live close to your property, and don't mind devoting several hours per month to the task, in many cases this just isn't practical---especially if you hope to expand your business. With this in mind, here are some critical tasks a property manager can help you with:
Setting the right rental rates: Good property Management Company will conduct a thorough market study in order to set a rental price for your property, ensuring that you achieve the perfect balance between maximizing monthly income and maintaining a low vacancy rate.
Collecting and depositing monthly rent payments on time: If you've ever worked in a billing department, you know that securing payment from clients can be difficult. Property management companies have system to effectively collect rent and maintain on-time payments. You'll find this particularly important if you own properties, and collecting payments on time is crucial to maintaining your cash flow. have a limited number
Marketing and advertising your property: With social network and resource available, a property manager will know exactly where to market your property and how to craft compelling advertising materials---a significant advantage when it comes to filling your properties quickly and avoiding long vacancies.
Finding the right tenants: Experienced property managers are experts at placing good tenant, and will take care of details, checking criminal background, security checks, running credit reports, verifying employment, and collecting previous landlord references.
Managing tenants: Not just finding good tenants, a property management company will manage all aspects of the tenant-landlord relationship. The property manager will handle both routine and emergency maintenance, take care of routine inspections, and manage any situations where conflict resolution is required, effectively issuing any notice required.
Managing vendor relationships: Property management companies have reliable, tradesmen, contractors, suppliers, and vendors that it's almost impossible for an independent landlord to duplicate. Not only will your property manager get you the best work for the best price, they'll oversee any necessary maintenance projects.
Ensuring all compliance with housing regulations and property laws: There is a multitude of applicable laws and regulations to abide by when renting and maintaining your rental property. These include local, state and federal regulations, as well as fair housing regulations (such as the ADA). A property manager can help you avoid lawsuits by keeping your property up-to-date and in compliance with these regulations.
Enabling investing in properties out of area: Managing your own properties, limits your investment opportunities within a tight radius of your own home. By hiring a property manager, you can take advantage of investment deals in any location you wish.
Maximizing the profitability of your time: By having a property manager take care of the day-to-day aspects of running your income producing property, your free to spend your time identifying further investment opportunities or otherwise furthering your career.
Maximizing the profitability of your money: Property managers charge a percentage of your property's monthly rental rate in exchange for their services. The rate typically runs anywhere from 6-10%, which is generally less than the money you save by hiring a professional to take care of your property.
Property management Company: All property management company are license by the state, and may be part of an Professional standard organization.
Quarterly account Balance, and Year end Statement: Property management company send out quarterly statement showing all income and expense, also a year-end statement for tax
Short Sale, One of many Option.
What is a short sale?
A short sale occurs when the net proceeds from the sale of a home are not enough to cover the sellers’ mortgage obligations and closing costs, such as property taxes, transfer taxes, and the real estate practitioner’s commission. The seller is unwilling or unable to cover the difference.
Some — although by no means all — short sellers may also be in default on their mortgage loans and be headed for foreclosure. However, home owners who bought at the top of the market or who took out large amounts of equity with a refinance and who now need to sell because of divorce or job transfer may also find themselves upside down, owing more than the home is currently worth when closing costs are factored in.
How do I know it’s short?
A CMA will be your first indicator, but you also need to know what their outstanding debt is and calculate the cost associated with a sale — from transfer taxes to commission. This will give you an estimate of the net proceeds that will be realized,
on a net sheet. This information can then be entered into a HUD-1 Settlement Statement to calculate out the final, negative result at closing.
Ask your Realtor at Khemson Realty to check with their title company and the lender to get exact figures on closing costs and loan balances and to find out what procedures they have in place. If they can afford it, sellers should also consider getting a home inspection to determine what repairs are needed on a home and how this might affect its value.
NOTE: Seller will have to send a brief letter to all mortgage holders, giving them permission to speak with your Realtor. Otherwise, privacy laws will prevent them from talking to you about the loans. It’s also critical to build a relationship with the seller’s lender. Once you have credibility, the entire process becomes easier.
how would I and the seller need to talk to about the problem?
If there are a first and second mortgage or a home equity line of credit, you may have to talk to more than one lender to get approval for a short sale. In addition, you may also need approval from the entity that holds the pool of loans if the mortgage has been securitized.
"The presence of two lenders makes a short sale more complicated since it’s often the lender holding the second, or junior, mortgage that has to absorb most of the loss.
Opinions differ, but most experts suggest that you let the lender involved know as soon as possible of the potential short sale. Others say you should wait until you have an offer because you’ll get no action until then. “Without a viable purchase offer, your deal won’t be considered by mortgagees,”
Tip: Be sure you contact the bank’s loss mitigation department, which will be the group to decide whether to accept a short sale, rather than the collection or customer service department, which is only interested in recouping past due loan payments. "Finding the decision maker is often one of the biggest initial challenges in a short sales,"
What information will the bank need to decide whether to accept a short sale?
The sellers’ submission package should include W-2 forms from employers (or a letter explaining the seller is unemployed), bank statements, two years of tax returns, and other financial documents outlining income and debt obligations. The bank will also need comps or a broker’s price opinion showing your estimate of value.
In addition, the sellers should submit a “hardship letter,” explaining the circumstances that make it impossible for them to pay the full amount of the loan. The seller needs to be able to show true financial hardship. Someone with the assets or the income to pay is unlikely to be considered.
Alternatives to Foreclosure When Your Clients Can Afford to Keep the Home
Sometimes your clients may experience a temporary reduction in income or financial hardship, such as an illness. When this happens, they may temporarily be unable to make their mortgage payments. Once the situation improves, however, they may be able to resume the scheduled payment of the mortgage.
The servicer may be able to arrange an increase in monthly payments until the loan is brought current. This means that each month your clients would add an additional amount of money (determined by the servicer) to their regular monthly payment until the amount that was overdue has been repaid.
Forbearance is a formal, written agreement between your clients and the mortgage servicer to reduce or suspend monthly payments for a specific period of time. This means that for a period of time, your clients would either pay only a portion of their regular mortgage payment or not make any payments at all. At the end of the agreed-upon period, your clients would be required to resume regular monthly payments as well as pay additional funds to make up for the past due amount. During the time that the payments are either suspended or reduced, your clients would have the opportunity to resolve the financial hardship they are facing.
In situations where the servicer does not believe that a repayment plan or forbearance is the appropriate course of action, a loan modification may be considered. A loan modification involves changing one or more of the terms of a mortgage in order to help your clients bring a defaulted loan current and prevent foreclosure. This option generally is considered for homeowners whose financial problems are expected to be more long term.
Alternatives to Foreclosure When Your Clients Cannot Afford to Keep Their Home
As hard as your clients might try, sometimes financial hardships don't get turned around as quickly as they would like. These situations may include a long-term layoff, job loss, mandatory reduction in pay, disability or illness that results in a decrease in income or an increase in major medical expenses, or the death of the principal wage earner.
In these instances, it may not be possible for your clients to continue to meet all of their financial obligations and the only appropriate course of action is relinquishing ownership of the home, while avoiding foreclosure. These alternatives include:
Assumption of the Loan
An assumption is a method of transferring a house to a new buyer who agrees to take responsibility for (assumes) the existing mortgage. Not all mortgages are assumable, so this option must first be discussed with the servicer.
Deed-in-Lieu of Foreclosure
A deed-in-lieu of foreclosure takes place when your clients voluntarily give the deed to the property to the servicer. Generally, a deed-in-lieu is considered only after all other alternatives to foreclosure have been explored.
To determine if you qualify for an alternative, you will need to provide follows;
1. Financial statement completed by all borrowers listed on the
Mortgage or deed-of-trust. Be sure to sign the statement.
2. Copies of the last two month pay-stubs from each borrower listed on the
Mortgage or deed-of-trust. Note: If you are self-employed, send copies of your
profit and loss statements, ledgers and receipts.
3. Provide evidence of any 'Junior' (second or more) liens.
4. A letter requesting assistance and explaining the
Circumstances of the difficulties you are experiencing.
5. Last 2 years of complete tax returns.
Normal collection activities will continue while your account is being
Reviewed for the options mentioned above. If you are obligated to make all
Future payments as they come due even while we are evaluating your situation. Please note that participation in a workout program is not guaranteed. After received the completed package, Lender will need 2-3 weeks to review and determine whether you qualify for an alternative to foreclosure.
I have experience in Short Sale! I can help you by negotiating with your Lender on your behalf in getting approval on Short Sale.
Call today 612-532-3151