Monthly Archives: October 2009

Potential for Tax Credit extension

Posted on October 30, 2009 by | Leave a comment

By: Collin Ellingson

More encouraging news that the First Time Homebuyer Tax Credit will likely be extended and expanded as the Senate agreed this week to initial terms after intense lobbying from the NAR and NAHB, among others.

A recent U.S. News and World Report article on October 29th reported that the terms include an extension to April 20th, 2010 for all contracts, with an additional 60 days allowed for closing.  The new terms would also allow EXISTING homeowners to claim up to $6,500, and would increase the income limits for single and married buyers to $125,000 and $225,000, respectively.

While this is encouraging news for the real estate industry, I wouldn’t let the pending extension delay a first-time buyer purchasing decision today.  There are no guarantees that the new measure will pass with all terms intact, and a November 30th closing is still within the realm of possibility. First-time homebuyers should take advantage of the sure thing: choosing the home they want, locking in at today’s discounted price, AND taking advantage of the tax credit.  That’s a win-win-WIN.

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Posted in First-time homebuyer

What is a Short Sale?

Posted on October 26, 2009 by | 1 Comment

By: Joan Hertz

What is a Short Sale?

 A short sale is when the lender/bank will agree to sell the property for less than the mortgage amount that the seller owes to the lender. There are 2 different points of view on a short sale: Perspectives from the seller and the buyer. (We could actually say 3 and include the lender’s perspective!)

Seller

Desperate sellers are looking more and more at short sales as a solution to avoid foreclosure. A short sale will affect the sellers’ credit scores but will have less of an impact than a foreclosure in regards to the negative impact on your future credit. Financial hardship by the seller has to be proven to the lender to begin a short sale. As a seller, if you are behind on your payment and your financial condition has drastically changed, the lender may be more willing to agree to a short sale. Please be aware that lenders can and will opt for foreclosure if they can recuperate money from the mortgage insurer (even if the seller can get an able and qualified buyer to purchase their home at reduced sales price). In the current real estate market, be aware that if you are “upside down” between the current value of your home and what is owed on the mortgage, but you are still making regular payments, the lender will have no incentive to approve a  short sale, and if for any reason you have to sell, the lender will expect you to come up with the difference. If you are considering a short sale, make sure you list the home with a Realtor  who is a Certified Short Sale Specialist. The Realtor will know all the requirements and be able to help you get to the finish line, the closing!!

Buyer

As a buyer, when you are looking at a short sale, the first thing to understand in this process is that the lender is in the driver seat. Flexibility, patience and time are what you need as a buyer to go through the process of getting approval of the sale from the lender. Understand that the contract will have provisions that protect the seller/lender. One provision will state seller to have lender and any lien holder approve the sale and purchase agreement. Some lenders may require that the seller can entertain other offers that are presented to him even after the home is under contract. Remember the lender wants to make sure that he recovers the maximum amount of the outstanding loan.

 How do you make sure all these issues are addressed up front? Engage a  Realtor  who is certified in short sales! The Realtor will make sure that certain necessary language is incorporated in the contract language, such as: Buyer has the first right of refusal or a clause that stipulates no other offers will be considered by the lender. A Certified Short Sale Realtor will make sure that, when listing to promote a short sale or submitting an offer to the lender, the following items are included in the package:

a) Lender contact  who approved the short sale or at least can confirm receipt of short sale package

 b) Contact information for the Attorney who is engaged to do a preliminary HUD to be submitted to lender

c) Results of the title search, which is performed to make sure that no other liens are on the property that will affect the HUD Statement and bottom line of the lender

d) Current Property taxes , HOA Dues and information about who is the Declarant of the HOA

e) Handwritten Hardship Letter from the  seller

f) Complete financial disclosure of the buyer

g) Purchase Contract

h) Preliminary HUD

i) Proof of income for the last 2 years

j) 2 years tax returns

k) Copies of last 2 bank statements

 l) 3rd party authorization form

SO, what is next in the process? Sit back and have patience after an offer is made on a short sale!

For more information about purchasing a short sale, visit: http://www.cbbankowned.com

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Posted in Bank Owned

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Defining Value

Posted on October 21, 2009 by | Leave a comment

By: Maria Mena

Value is a word we hear frequently today. In today’s economy it is being used by marketers to draw us to their product.

 Value is a word that we learn early in our lives. As toddlers we are fascinated by the clinking sound of coins as they hit the belly of our new piggy banks and quickly learn to distinguish the differences in coins. At a young age we learn to distinguish the value of numbers; we quickly learn to value our food, our parents, our pacifiers, our toys.

Then, as the circle of our lives expands we learn to value more.

 Yet, this word continues to perplex and challenge us throughout our lives. As people we value our health, our family, our religious beliefs, our marriage, our friends, our country, our freedom, our cities and communities, our neighbors, our home teams, our homes, our safety, our abilities, our jobs, our time off, our vacations, our investments, our pride, our privacy, in short…our lives!

 At some point most of us come to realize that sometimes we must choose among the things we value most and making choices can be difficult.

 The reality of having to make choices, when looking for a home hit me like a ton of bricks when I moved back to Atlanta in 1991. I wanted to live in a certain neighborhood but I wanted a home that was in another.

When I reconciled the neighborhood issue then other value questions arose. I wanted the kitchen of one house, the garage of another, the backyard of a third, for the price of the fourth!

 When looking for a home it is important that you clearly understand what you value the most. Make a list of your priorities and communicate this to your agent.

You should distinguish “wants” from “needs” when looking at houses and rank them in importance and then look for a home with the most important features that are “needed”.

 It’s fine to want it all, but be clear with yourself regarding what you value most and what as a buyer you actual need.

There are a variety of homes on the market and you should not feel the need to settle.

Take advantage of the great value of buying a home today.

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Posted in Real Estate, Sales and Marketing, Value of a home

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Under Contract – What a great feeling!

Posted on October 12, 2009 by | Leave a comment

By: Leslie Williamson

A market in flux. A market of opportunity. According to the economists, a market in flux is coming to an end and a market of opportunity  has begun to take place. We have begun to get back to a more “traditional” pace of growth and absorption. Although the housing industry will more than likely never return to the artificial and unsustainable levels of 2004 and 2005, the American Dream is still alive and well. Homeownership has never been more important to the average consumer.

During the past 120 days Coldwell Banker NRT Development Advisors has taken advantage of the market in flux to create a market of opportunity by repositioning new home communities to sell-out in a tough and competitive environment, but also be a viable for sale opportunity to the consumer. With competitive pricing and aggressive marketing illustrating the value, the final release of homes are under contract and closing at the following communities: Regatta located on James Island in Charleston (more than 50 homes under contract in 120 days) and Mirabella located in Jacksonville (more than 25 homes under contract in 90 days). Just goes to show that strategic positioning is essential in any type of market.

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Posted in First-time homebuyer, Real Estate, Sales and Marketing

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To Extend or Not to Extend?

Posted on October 9, 2009 by | 1 Comment

By: Judy Price

Estimates place the overall number of new homes purchased with the first-time home buyer tax credit at 1.2 Million, with 400,000 homes bought by those who would have never done so in the first place. With the credit set to expire on November 30th, the debate about its extension now goes all the way to Capitol Hill.

This week, Congress did vote to extend the 8K tax credit for the next year to servicemen and women who actively served overseas for three of the last twelve months. This bill now moves on to the President. What remains to be seen if the extension will apply to all first-time buyers or beyond that to all home purchasers.

The market data continues to show signs of hope. On September 29th, the most recent Case-Shiller indices reported that the data from July showed house prices in the United States increasing for the third month in a row. And the August Pending Homes Sales Index posted its seventh consecutive monthly gain in August, the highest reading in 2-1/2 years. In my previous post,  I expressed concern over unemployment’s effect on recovery. Almost 10% of our population is more concerned about finding a job over purchasing a home. It sounds as if we’re stuck in a catch-22. Since housing is such a large part of our economy, it would make sense to continue to provide ways to stabilize it. But if the unemployed cannot qualify for a loan, they won’t have an opportunity to take advantage of the tax credit, resulting in a prolonged recovery in the housing market.

Interest rates remain low, and for those who can make the move, it remains a great time to buy. Would an extension of the tax credit result in another 400,000 new purchases that could boost the economy? I say we should give it a try. As bipartisan support for the extension gains momentum in Congress, it is possible that six-twelve more months of the tax credit may be on the horizon.

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Posted in Bank Owned, FHA financing, First-time homebuyer, Real Estate, REO, Sales and Marketing

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“I should have bought that stock….”

Posted on October 7, 2009 by | 3 Comments

By: Lenny Rindsberg

How many times have you said “I should have bought that stock”….after learning that the stock doubled or tripled in price.  Remember when Google stock IPO’d for $80?  If only we all bought shares then.  Today that same stock is worth $510.  Although I can’t guarantee the same returns in real estate, now is the time that you CAN be able to buy and KNOW you bought at the right time.  Several reasons include:  Continued Historically low interest rates, 1st time Home buyer credit (if you qualify), reduce priced inventory, foreclosures, auctions, etc.  There’s no guarantee that the rates will remain low or that the tax credit will be extended…so why not test the waters to see what kind of deals are out there.  There are some amazing deals out there!!! Don’t take a risk and say “I should have purchased when I had a chance”.  That time is now!  Take advantage of this buyers market today!

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Posted in First-time homebuyer, Real Estate, Sales and Marketing

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