Robert's Blog

Subprime mortgage meltdown

Robert Song (RE/MAX Accord) — Mon, 23 Apr 2007 19:53:43 -0500

There are new strict guidelines in the market now, in subprime and ALTA-A lending. I believe that it will help homeowners keep their homes instead of getting into loans that will force them to overextend and sometimes lose their homes. Foreclosure rates are up, buyers with excellent credit but no money down are seeing higher interest rates, its a mixed reaction. Buyers who really can afford higher priced homes but need stated income loans (self employed, business owners, etc.), have plenty of assets but don't want to spend the money as a down payment (whether it be a wedding coming up, a new business venture, etc.), are also being affected by these new lending guidelines.

In a sense I feel it will be good for the market and for homebuyers to help them to stay within their real price ranges, but we also have such a glut of homes on the market, that many good and willing buyers will be forced out of the market.

Is there a happy medium to help remedy this crisis, without having a huge impact on the real estate market?

Tablet PC's?

Robert Song (RE/MAX Accord) — Mon, 23 Apr 2007 19:15:31 -0500

I have a $2000.00 year and half old laptop I use for business everyday. Theres absolutely nothing wrong with it, and it is packed with the best technology. But I have been getting very intrigued lately with the thought of a lightweight tablet PC, and being able to have clients sign contracts right onto it, and just printing copies out.

I wanted to get opinions on what they thought about tablet PC's, if it is worth the replacement of my conventional laptop, and also if there were any common issues associated with tablet PC's used in the real estate realm.

I can't sell, I owe more than what the house can sell for

Robert Song (RE/MAX Accord) — Fri, 13 Apr 2007 17:53:09 -0500

In this market, many home owners in mortgage trouble don't realize that banks are willing to negotiate terms. Don't think that your only option is foreclosure. Experienced agents can help negotiate with the banks on your behalf. But thats only half the battle. Most real estate agents don't understand the entire process, or how to make sure that all the information provided to the bank can help ensure the highest level of success. It's whats commonly known as a short sale, and many more are appearing lately. The key is to make sure that your agent knows exactly how to qualify and speak with the bank to make sure you can be approved for a short sale. A short sale is when you owe more than what you will be able to sell it for, but the bank agrees to "let go" of the remaining amount owed. But its not that simple. Just because you find yourself in a situation where you owe more than the selling price of the home DOES NOT mean its a short sale. Its imperative that you deal with an agent that knows exactly what will constitute a short sale with the banks.

You may think that, "Well, banks don't want to own my house, so they'll approve the short sale no matter what!" The truth is that about 2/3 of lenders sell your loans to wall street, or investors, and there are clauses in those contracts of sale that may prevent the "easy" short sale.

The best thing to do if you are in a challenging situation, is to call a qualified real estate agent (preferrably a Realtor) to see if they have experience in handling short sales.

Don't ever think that you are without options.