If you are a first-time homebuyer (or second, third, so-on buyer) who has been seriously thinking about purchasing a home, but are still waiting for the home prices to fall, you're about to miss out. Inventory is dwindling and interest rates are going up. I have noticed a huge decline in inventory in my home market of Tampa, FL. Most of the homes that are selling are $150,000 and under because of the influx of first-time homebuyers. First-time homebuyers who are still thinking about buying a home need to move quickly. The $8,000 first-time homebuyer tax credit expires December 1, 2009. This means you have to actually close on the home prior to December 1st. If you are first-time homebuyer who has been pre-approved for a FHA loan, you need to get moving immediately. Homes in the $110,000 price range and under that qualify for FHA are very difficult to find because there are very few of them and the few that are in good condition go quickly. You also have to take into account the short sale timeframe, which takes forever. At this point, if you don't already have a contract in on a short sale home, there is a very slim chance the home will close before December 1st. Bank-owned and regular old seller to buyer sales (what are those?) are just about your only chance at this point to ensure you close before December 1st and qualify for the $8,000.
The point of this blog is to help light a fire and get you moving on finding a home now before interest rates go through the roof (you know, inflation is going to kick in at some point) and to beat the deadline of December 1st.
I have recently started noticing a lot being said about Realtors who claim they are short sale specialists, but their sellers are filing lawsuits against them. Realtors taking on short sales need to realize there is a certain amount of legal risks in handling these types of transactions. I have short sale listings and I always try to be very careful when giving sellers any type of legal advice. It is important to make it clear to the seller that you are not a real estate attorney. In light of the many possibile ways a seller could try to sue, Probably the biggest worry of sellers doing a short sale (besides the effect it has on their credit reports) is the fear of getting a 1099. A lender can file a 1099 for the deficiency amount that would force the seller to claim as income and pay taxes on the amount. If the home is your seller's primary residence, a law was passed in 2007 that states the IRS can not count mortgage debt as income, but this does not apply to second homes. In addition, if the seller has assets or money saved in the bank or a retirement account, a lender can ask for this money before approving a short sale in some states. Realtors need to be aware that Florida is a nonrecourse state that states lenders cannot go after a sellers cash money and should be advising the sellers as such.
For Realtors who think they are doing the right thing by hiring a loss mitigation company to handle the short sale negotions are forewarned. Sellers can file a lawsuit against you stating negligence if you are not managing the short sale process and the deal falls through. It is important to make sure you are on top of what is going on and demand the loss mitigator is sending you an update email once a week so you can show the paper trail. This also applies to Realtors who work with your modern day "flipper" who purchase short sale properties and almost simultaneously flip it over to an end buyer within an hour of purchasing the home from the seller and the lender. The flipper negotiates the lowest price possible with the lender with the intention of selling the home to the end buyer for a profit. Investors who are concerned abou the 1099 want the final amount paid to the lender to be as high as possible.
These are just a couple of the important questions I tend to get from sellers who are considering a short sale. A Realtor has to be able to give them the right answers or at least tell them "I don't know" and direct them to a real estate attorney.
I understand offers come in on bank-owned properties and the listing Realtor submits those offer to the asset manager and the asset manager holds on to the offers for several days (or weeks in some cases) waiting for higher offers to come in. What I find in some cases, is the listing Realtor will tell a fellow Realtor representing the buyer, there are multiple offers in on the property but will not reveal any information of what the offers are. I understand to a certain degree that they represent the seller and their best interest, but refusing to give me an idea of what my buyer should come in at is a disservice to my buyer. How am I supposed to advise my buyer to come in X amount higher than the listed price if my simple question of "Do you have any offers higher than the asking price" is not answered by the listing Realtor? How can the listing Realtor not understand that simply saying yes or no to this question is vital? I am not asking "What is your highest offer." I just want a yes or no answer. It baffles me the listing Realtor does not understand this concept. Of course, my buyer will just skip this property all together and will not bother putting in an idle offer.
I am not saying all listing agents representing REO properties do not understand this concept because there are many saavy Realtors who are willing to give a buyer's agent just enough information so they know how to advise their buyer. This type of Realtor understands business and how to get things done. To the others who think keeping your offers secret, open your mind and think logically how to help get your client the most money for their properties!
Short sales dominate the real estate market. It is difficult to go through a list of homes and actually find a home that isn't a short sale. I get excited when I find my buyer a home that is the traditional seller to buyer type deal. Short sales are here to stay for at least the next few years so it is imperative for buyers to work with a real estate agent that knows what they are doing. A short sale is a complicated. long drawn-out process that really puts a buyer to the test! A good real estate agent will know how to weed through the multitudes of listings in order to determine the home is actually availabe and determine whether or not the listing Realtor will be successful in getting the lender to approve the short sale. These are two very important questions that need to be asked before a buyer's agent should show the buyer the property. Many listing Realtors are leaving the listing active in the Multiple Listing Service (MLS) so it looks like there are no offers on the property, but in reality they are holding several offers. How does this benefit the buyer? Once an offer is actually submitted to the lender, or lenders in some cases, it takes approximately 60 to 90 days just for the lender to either accept the offer or counter the offer. The buyer's agent and the listing realtor need to work together to ensure the offer that is being made on the property is a reasonable offer, pre-approval is obtained and the buyer is made aware of the short sale timeframe and is willing to hang in there for the long haul. At this point, the listing Realtor should take the home off the market and give this buyer "first right of refusal." Many listing Realtors are not doing this so a good buyer's agent must know how to avoid these homes for their buyers. The second question about whether or not the listing Realtor is going to get the deal done. I have learned through the school of hard knocks to advise a buyer to not bother to put in an offer is I feel the listing Realtor is not going to get the deal done. If the listing Realtor is savvy, they will employ one of the many strategies available to get a short sale done. A good buyer's agent will be able to determine if the route the listing agent has chosen to take will work.
To all the buyers looking for a great home, now is the time to take advantage of the good deals that are available to you. There are many short sale and bank-owned properties that are being sold for way below market prices. You just have to understand, short sales take time but the pay-off is incredible!
Like everyone who purchased a home in the last five years, you owe more than your home is worth. One or both of you have lost your jobs and you are struggling to stay current on your mortgage payments. The Obama administration announced on March 4th, they will offer assistance to as many as 7 to 9 million homeowners. The program known as The Home Affordable Refinance program will be available to homeowners who are current on their mortgage payments and want to stay in their homes, but do not qualify for refinancing because their current loan to value ratio is above 80%. Obama has made a second program available to at-risk homeowners to help avoid foreclosure known as the Home Affordable Modification program. Under this program, lenders will work with homeowners to lower their monthly payments so they can stay current.
Eligibility for the Home Affordable Modification is as follows (taken directly from the U.S. Department of the Treasury Report published March 4, 2009):
Loans must have originated on or before January 1, 2009
First lien loans on owner-occupied properties with unpaid principle balance up to $729,750. Higher limits allowed for owner-occupied properties with 2-4 units.
All borrowers must fully document income, including signed IRS 4506-T, two most recent pay stubs, and most recent tax return, and must sign an affidavit of financial hardship.
Property owner occupancy status will be verified through borrower credit report and other documentation; no investor-owned, vacant, or condemned properties.
Incentives to lenders and servicers to modify at risk borrowers who have not yet missed payments when the servicer determines that the borrower is at imminent risk of default.
Modifications can start from now until December 31, 2012; loans can be modified only once under the program.
We all know a housing stimulus is absolutely necessary in order to get the economy going again, but the Senate unfortunately doesn't agree. The shot down the proposed $15,000 home buyer tax credit, which would have helped get more buyers off the fence. The $7500 first time home buyer credit simply was not doing what it was created to do so the National Association of Realtors lobbied Washington to give all homeowners a tax credit of $15,000. The $15,000 coupled with lower interest rates could be the stimulus needed to get the housing market back in check. Simply lowering the interest rates will not get the buyers completely off the fence. I guess spending $21 million to re-sod the National Mall in Washington is going to help the economy.
I cannot tell you enough how important it is to check your credit reports yearly for mistakes. Mistakes are easily made and they can wreak your credit score. If there are mistakes, you must work with the credit reporting agency to get them corrected. Don't trust anyone else to do this for you. Common mistakes that are easily identified are:
Late payments - approximately 35% of your credit score is based on your timely payments of bills.
Available Credit - make sure the credit limits reported on the credit reports match the actual limit you have on the credit card.
Accounts you don't recognize - if there are any accounts showing open with balances on your credit report that you know you didn't open, call the account holder to notify it is a fraudulent account.
Make sure you are checking your credit report with all three of the major credit reporting agencies (Experion, TransUnion and Equifax). If one is showing all information is correct, another could have an error. In this tight credit market, it is nearly impossible to make a large purchase with a low credit score. Take the time to clean your credit reports up and it will pay off in the long run.
Many buyers today start their search for the perfect home on the Internet. While it is a great way to start your search, you should contact a Realtor when you are serious about buying. As a buyer, you pay absolutely nothing to your Realtor for the loads of work they do for you (their commission is paid by the Seller of the home you are buying). Therefore, going at it alone in this crazy market is ludicrous!
Don't assume the Web is all you need to purchase a home. Buying a home in a market where short sales, foreclosures and bankowned properties rule is not an easy process for someone who isn't experienced (it's not easy for those who are experienced!). The research, negotiation and paperwork involved requires an experienced local Realtor. There is an endless amount of homes listed on the Internet, which can make the process of finding your dream home mind boggling. A real estate professional has access to the most sophisticated real estate search tool available (the Multiple Listing Service or MLS). They are able to set up a search that meets most of your needed criteria so you don't have to fish through the stuff you don't want to see. Also, you can rest assured that every listing you receive from your Realtor is a real listing. Internet predators are a dime a dozen and they will try to scam anything they can. They will post fake listings in order to collect page views.
Lastly and most importantly, a Realtor is going to do a market research study to ensure the offer you submit to the Seller is right. Don't assume you are going to get the correct market value for the home you are interested in by researching it on websites like Zillow.com or Cyberhomes.com. Your Realtor is going to use the MLS to accurately search how much buyers paid for similar homes in the same area.
Stop driving yourself nuts with the glut of listings on the Internet and just get a Realtor to help you!
I read everywhere that applications for refis are soaring because of lower interest rates, but I find it hard to believe. Apparently there are many homeowners out there will a good deal of equity in their homes. I, on the other hand, are one of those people who purchased a home in 2006 during the peak of high market prices. I would love to refinance my mortgage so I can save a few hundred dollars a month, but the problem of requiring an appraisal will knock me out of the running. I pluncked down a hefty down payment when I bought the home, but since the market prices have fallen I have lost all of the equity and then some. If my home would appraise, I would sell it and take advantage of one of the killer deals on a bigger house in a better location. Once again, I question why I continue to "do the right thing." I am a person of morals and I have excellent credit so I would never intentionally stop making my payments in order to try to weazel out from under my mortgage, but why isn't there any aide for people like me? What is wrong with lenders bypassing the appraisal and allowing me to refinance? It's not like I am asking them to eat a portion of my loan (I would have to be behind on my payments for that one), but all I want is a lower interest rate.
Didn't the government implement the lower interest rates in the hopes it would stimulate the economy? Believe me, I would absolutely stimulate the economy with my extra $300 a month at the mall!
There are several changes taking place in the Florida Real Estate market that I believe will improve current conditions.
There is now a tax incentive for first time homebuyers of up to $7500. At this time, the tax incentive is good for only first time homebuyers (you are considered a first time homebuyer if you haven't purchased a home in the last three years). The National Association of Realtors is trying to get legislature to extend the tax credit to all homebuyers. This credit currently expires July 1, 2009 so don't procrastinate.
Home loans are more readily available and intereste rates are at an all-time low.
Mortgage lenders employ higher standards. One of the main reasons our housing market has tanked is because of lenders who dealt in subprime lending. An estimated 1.5 million ARMS will readjust to higher interest rates this year leaving homeowners unable to make the higher mortgage payments. New legislation has been passed that will allow borrowers to refinance into a more affordable mortgage.
Tighter lending practices will ensure borrowers are actually qualified for an amount they can realistically afford.
Fannie Mae and Freddie Mac has raised the limits onf the mortgages they guarantee from $417,000 to $625,500 and the Federal Housing Administration will raise their loan limit to $625,500.
The FHA will also help existing homeowners refinance their current mortgage into a lower interest rate, which will reduce monthly payments by hundreds of dollars and hopefully prevent a foreclosure.
If you have ever dreamed of owning a home, now is the time to get pre-qualified for a mortgage and contact your local Realtor to get you started.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
If you are a first-time homebuyer (or second, third, so-on buyer) who has been seriously thinking about purchasing a home, but are still waiting for the home prices to fall, you're about to miss out. Inventory is dwindling and interest rates are going up. I have noticed a huge decline in inventory in my 
I have recently started noticing a lot being said about Realtors who claim they are short sale specialists, but their sellers are filing lawsuits against them. Realtors taking on short sales need to realize there is a certain amount of legal risks in handling these types of transactions. I have short sale listings and I always try to be very careful when giving sellers any type of legal advice. It is important to make it clear to the seller that you are not a real estate attorney. In light of the many possibile ways a seller could try to sue, Probably the biggest worry of sellers doing a short sale (besides the effect it has on their credit reports) is the fear of getting a 1099. A lender can file a 1099 for the deficiency amount that would force the seller to claim as income and pay taxes on the amount. If the home is your seller's primary residence, a law was passed in 2007 that states the IRS can not count mortgage debt as income, but this does not apply to second homes. In addition, if the seller has assets or money saved in the bank or a retirement account, a lender can ask for this money before approving a short sale in some states. Realtors need to be aware that Florida is a nonrecourse state that states lenders cannot go after a sellers cash money and should be advising the sellers as such. 
I understand offers come in on bank-owned properties and the listing Realtor submits those offer to the asset manager and the asset manager holds on to the offers for several days (or weeks in some cases) waiting for higher offers to come in. What I find in some cases, is the listing Realtor will tell a fellow Realtor representing the buyer, there are multiple offers in on the property but will not reveal any information of what the offers are. I understand to a certain degree that they represent the seller and their best interest, but refusing to give me an idea of what my buyer should come in at is a disservice to my buyer. How am I supposed to advise my buyer to come in X amount higher than the listed price if my simple question of "Do you have any offers higher than the asking price" is not answered by the listing Realtor? How can the listing Realtor not understand that simply saying yes or no to this question is vital? I am not asking "What is your highest offer." I just want a yes or no answer. It baffles me the listing Realtor does not understand this concept. Of course, my buyer will just skip this property all together and will not bother putting in an idle offer. 
Short sales dominate the real estate market. It is difficult to go through a list of homes and actually find a home that isn't a short sale. I get excited when I find my buyer a home that is the traditional seller to buyer type deal. Short sales are here to stay for at least the next few years so it is imperative for buyers to work with a 
Like everyone who purchased a home in the last five years, you owe more than your home is worth. One or both of you have lost your jobs and you are struggling to stay current on your mortgage payments. The Obama administration announced on March 4th, they will offer assistance to as many as 7 to 9 million homeowners. The program known as 
We all know a housing stimulus is absolutely necessary in order to get the economy going again, but the Senate unfortunately doesn't agree. The shot down the proposed $15,000 home buyer tax credit, which would have helped get more buyers off the fence. The $7500 first time home buyer credit simply was not doing what it was created to do so the National Association of Realtors lobbied Washington to give all homeowners a tax credit of $15,000. The $15,000 coupled with lower interest rates could be the stimulus needed to get the housing market back in check. Simply lowering the interest rates will not get the buyers completely off the fence. I guess spending $21 million to re-sod the National Mall in Washington is going to help the economy.
I cannot tell you enough how important it is to check your credit reports yearly for mistakes. Mistakes are easily made and they can wreak your credit score. If there are mistakes, you must work with the credit reporting agency to get them corrected. Don't trust anyone else to do this for you. Common mistakes that are easily identified are:
Many buyers today start their search for the perfect home on the Internet. While it is a great way to start your search, you should contact a 
I read everywhere that applications for refis are soaring because of lower interest rates, but I find it hard to believe. Apparently there are many homeowners out there will a good deal of equity in their homes. I, on the other hand, are one of those people who purchased a home in 2006 during the peak of high market prices. I would love to refinance my mortgage so I can save a few hundred dollars a month, but the problem of requiring an appraisal will knock me out of the running. I pluncked down a hefty down payment when I bought the home, but since the market prices have fallen I have lost all of the equity and then some. If my home would appraise, I would sell it and take advantage of one of the killer deals on a bigger house in a better location. Once again, I question why I continue to "do the right thing." I am a person of morals and I have excellent credit so I would never intentionally stop making my payments in order to try to weazel out from under my mortgage, but why isn't there any aide for people like me? What is wrong with lenders bypassing the appraisal and allowing me to refinance? It's not like I am asking them to eat a portion of my loan (I would have to be behind on my payments for that one), but all I want is a lower interest rate. 
;)
;)
