You're not alone if your roof is leaking and you're kicking yourself for not having called a roofer during the summer months. Most people have a limited concept of preventative maintenance. This can lead to big problems that end up being more expensive than if you had routine maintenance in place.
Many buyers don't understand that home maintenance goes with home ownership. When you rent, someone else usually pays for repairs. As a homeowner, you're responsible for keeping your home in good condition.
Unless you're handy at home repairs, it can be costly to maintain a home properly. But there is a benefit at the end of the line. Buyers pay more for homes that are well-maintained and show a pride of ownership.
It can be a hassle to properly maintain your home unless you organize and prioritize the projects that need to be done. You also need to set a schedule and stick to it.
Most home maintenance can be done annually: roof maintenance (including gutters and downspouts); sealing exterior cracks; weatherproofing; a furnace and air conditioning inspection; and inspecting and cleaning the drainage system.
Mark these events on your calendar so that they can be scheduled for about a month before you'd like to have the work done. If you wait until just before the rainy season to start your annual maintenance, you could have trouble finding good contractors to help you.
Don't wait until your roof is leaking to repair or replace it. There will be collateral damage to the interior of the house. Your homeowners insurance company might pay to repair the interior damage, less the amount of your deductible, but it won't pay to replace the roof. Too many claims could be grounds for not renewing your policy.
HOUSE HUNTING TIP: Assemble a crew of contractors and tradespeople who can help you with your home maintenance. It's not always easy to find reliable people who do good work. You'll end up frustrated and having to do more oversight if you work with people who don't show up or do the job right.
Ask your real estate agent or acquaintances who own homes in the area to recommend tradespeople to you. If the seller is happy with people who have worked on the property, ask for a list of names and contact information when you close the sale.
Homeowners who haven't the time or expertise to determine what needs to be done to keep their home in good shape could ask the home inspector that inspected the house for them to do a reinspection periodically to point out areas that need attention.
One of the keys to good home maintenance is to take care of critical items as soon as they become apparent. For instance, don't postpone repairing a plumbing pipe leak. Have it repaired as soon as you notice it.
Don't assume that because your house is new that you won't have any maintenance issues. If the gutters back up on any house, even a new house, water can leak into the house or down the inside of the walls. This, left unchecked, can lead to a major repair to the framing. If repaired right away, you may just need to seal and touch up the paint.
Likewise, even though you just had the exterior painted, you still may have areas that will need touch up every year or so, especially if they receive intense sun exposure.
THE CLOSING: Don't go for the cheapest contractor or building materials just to save money. If an inferior-quality job has to be redone sooner than anticipated, your savings will dwindle.
Tuesday, December 27, 2011
Tuesday, December 20, 2011
Should we use an Agent to Buy a home?
When they first begin looking for a home, many buyers ask "can't we do this on our own? Do we really need to use a Real Estate Agent?" The answer is yes, you can do it on your own. There is no law that prevents you, as an individual, from buying property without professional Real Estate assistance. You can search for homes, arrange showings, and even negotiate on your own (although, in some localities, the actual contract for purchase will need to be drawn up by an Attorney). The real question may be "do we want to do it on our own?"
There is a misconception among many first time home buyers that by using a Real Estate Agent, they will be subject to paying a commission. In virtually all situations, this is not the case. The commission for the sale of a home is paid for by the seller, not the buyer. If you went to your local appliance store and bought a new refrigerator, you wouldn't expect to pay a commission to the salesperson. The same applies when you buy a house--it is the seller of the item (in this case a house) that is responsible for paying to have it sold.
If you do decide to "go it on your own," your choices will obviously be very limited. The only homes that you can buy without any Agent assistance are those that are "For Sale By Owner" (FSBO)--generally a small percentage of the market. These are home owners who, for whatever reason, have decided not to use an Agent in the sale of their house. It may be because they think they can get more return by not paying a commission, or it may be because there was no Agent who would take their house listing at the price they demanded. Many Real Estate analysts have found that the selling prices of FSBO homes are equal to--or higher--than those listed by Agents. A problem arises when, as a "do-it-yourself" house buyer and without the benefit of a Comparative Market Analysis, you need to make a determination whether or not the house is worth the asking price. How do you decide? There is too much money potentially involved to make a "seat of the pants" decision. In this case, you will need to either secure an independent appraisal to determine a realistic price range for the property or develop your own determination of value.
The next mistake that many buyers make, when they find that their choices are so limited by only dealing with homes for sale by owners, is to jump into the "listed" market by checking advertisements and calling Listing Agents directly or visiting Open Houses. There is not a dime to be saved with this strategy (the seller is still going to pay a commission) and you run the risk of ending up with no representation, since the Listing Agent is duty bound to represent the seller. Please see the discussion on Agency. It is crucially important that you understand how it applies when you buy a home.
There is a misconception among many first time home buyers that by using a Real Estate Agent, they will be subject to paying a commission. In virtually all situations, this is not the case. The commission for the sale of a home is paid for by the seller, not the buyer. If you went to your local appliance store and bought a new refrigerator, you wouldn't expect to pay a commission to the salesperson. The same applies when you buy a house--it is the seller of the item (in this case a house) that is responsible for paying to have it sold.
If you do decide to "go it on your own," your choices will obviously be very limited. The only homes that you can buy without any Agent assistance are those that are "For Sale By Owner" (FSBO)--generally a small percentage of the market. These are home owners who, for whatever reason, have decided not to use an Agent in the sale of their house. It may be because they think they can get more return by not paying a commission, or it may be because there was no Agent who would take their house listing at the price they demanded. Many Real Estate analysts have found that the selling prices of FSBO homes are equal to--or higher--than those listed by Agents. A problem arises when, as a "do-it-yourself" house buyer and without the benefit of a Comparative Market Analysis, you need to make a determination whether or not the house is worth the asking price. How do you decide? There is too much money potentially involved to make a "seat of the pants" decision. In this case, you will need to either secure an independent appraisal to determine a realistic price range for the property or develop your own determination of value.
The next mistake that many buyers make, when they find that their choices are so limited by only dealing with homes for sale by owners, is to jump into the "listed" market by checking advertisements and calling Listing Agents directly or visiting Open Houses. There is not a dime to be saved with this strategy (the seller is still going to pay a commission) and you run the risk of ending up with no representation, since the Listing Agent is duty bound to represent the seller. Please see the discussion on Agency. It is crucially important that you understand how it applies when you buy a home.
Thursday, December 8, 2011
Tuesday, December 6, 2011
Home owners Insurance
Are you considering taking out hazard insurance on a property before you actually take title? It may be a good idea!
Even though you are not yet the owner of record, as the buyer, you have an insurable interest in a property the moment that you and the seller execute the sales agreement. As a matter of practice, however, buyers do not usually take out insurance until the papers change hands, and it should not be necessary if the agreement of sale is properly executed.
It is very important to both parties that the agreement states that the property will be insured for a specific amount. From the buyer's point of view, an adequate sum must be stipulated, and the agreement should not read "as now insured", which can indicate that the seller may not want to increase the insurance.
As a general rule, the amount of insurance on the buildings on a property should equal the sales price, less the value of the lot.
Even though you are not yet the owner of record, as the buyer, you have an insurable interest in a property the moment that you and the seller execute the sales agreement. As a matter of practice, however, buyers do not usually take out insurance until the papers change hands, and it should not be necessary if the agreement of sale is properly executed.
It is very important to both parties that the agreement states that the property will be insured for a specific amount. From the buyer's point of view, an adequate sum must be stipulated, and the agreement should not read "as now insured", which can indicate that the seller may not want to increase the insurance.
As a general rule, the amount of insurance on the buildings on a property should equal the sales price, less the value of the lot.
Tuesday, November 29, 2011
Tuesday, November 22, 2011
Keeping your home warm and saving money
No one likes wasting money, especially in these tough economic times. So it certainly makes sense -- dollars and cents -- to make a small investment of time and supplies to close up those heat-wasting air leaks around your home. It'll pay back big dividends in reduced energy bills and a warmer, more comfortable house this winter. So let's look at some of the areas where those drafts may be lurking, and see how to take care of them.
1. Doors and windows: This should be an obvious one. If you can see gaps between your siding and your windows or exterior doors, close them up with a bead of clear or paintable acrylic latex caulk. Larger gaps can be filled with foam backer rod before applying the caulking.
2. Exterior penetrations: Some of these areas are going to be obvious, while some may take a little bit of searching. Some examples of exterior penetrations where air can leak into the house include exterior faucets, dryer vents, exterior electrical outlets, exterior light fixtures, holes that have been drilled for phone and TV cables, conduit penetrations, exit points for plumbing drains, and penetrations for air conditioning lines. Closing these penetrations may require a variety of different techniques, including caulk, expanding spray foam, or, in the case of electrical boxes and fixtures, specific gaskets that are designed to fit the boxes.
3. Exhaust-vent covers: Dryer vents, range hood vents, bath fan vents, and other interior ventilation equipment typically terminate outside the house in a plastic or metal cover that has one or more louvers on it. The louvers are designed to be in the closed position whenever the fan is not in use, so that outside air doesn't leak in. Check all of these louvers to be sure they're closing completely, with no air leaks. If they aren't, you can adjust the spring tension to hold them closed more tightly; add foam weatherstripping tape for a more air-tight seal; or replace the entire vent cap with a new one.
4. Gaps around interior vents and recessed lights: Inside your home, heated air can be leaking out around that same ventilation equipment, where vent pipes pass through the walls or ceiling, or where vent covers meet wall and ceiling surfaces. Recessed light fixtures can also be real air-leakers. Around the vent pipes and recessed light cans, seal any gaps with caulking. For the vent covers and recessed light covers, remove the covers, then adjust the springs and/or add foam weatherstripping tape to create a tight seal between the cover and the ceiling.
5. Heat-duct penetrations: Gaps around heating-duct cans where they pass through the floor or wall allow cold air to enter from the crawl space, while gaps around ceiling-duct cans allow heated air to escape into the attic. To close those drafts, first remove the register, then use a combination of caulking and/or metallic duct sealant tape to close any gaps between the sheet metal cans and the floor, wall or ceiling surface.
6. Fireplaces and woodstoves: Lots of gaps can occur around these appliances. With a conventional fireplace, keep the damper closed except when burning a fire to prevent heated air from escaping up the chimney. Consider investing in a set of air-tight doors, which close off the air leaks and also make your fires more efficient. Look for gaps around woodstove and gas fireplace flue pipes, and air leaks around masonry chimneys. Use a metal collar if necessary around flue pipe penetrations, and seal gaps with heat-resistant sealant specially formulated for this application.
7. Attic and crawl space hatches: These can be real air losers if they're not weatherstripped, so take care of that with some foam tape. Make sure the hatches are insulated as well.
8. Interior doors to unheated spaces: If you have any interior doors that lead to unheated spaces, including basements, garages or attics, be sure the doors are weatherstripped to prevent air leakage. If possible, replace older, hollow-core doors with solid-core or, better yet, insulated metal doors.
9. Sill plates and penetrations: This one's not as easy to deal with, but it's well worth the effort to try to do whatever you can with it. Air can leak both into and out of the house through gaps where the sill plate meets the foundation or the siding, and around plumbing and wiring penetrations drilled through wall plates in various areas. If you have a gap between your siding and the bottom of your exterior wall, especially in older homes where the use of sill sealers was not a common practice, consider closing up this big air gap with a bead of caulking or expanding foam. In the basement, crawl space and attic, if you can access any of the pipes and wires that pass through the wall plates, seal the penetrations with expanding foam.
1. Doors and windows: This should be an obvious one. If you can see gaps between your siding and your windows or exterior doors, close them up with a bead of clear or paintable acrylic latex caulk. Larger gaps can be filled with foam backer rod before applying the caulking.
2. Exterior penetrations: Some of these areas are going to be obvious, while some may take a little bit of searching. Some examples of exterior penetrations where air can leak into the house include exterior faucets, dryer vents, exterior electrical outlets, exterior light fixtures, holes that have been drilled for phone and TV cables, conduit penetrations, exit points for plumbing drains, and penetrations for air conditioning lines. Closing these penetrations may require a variety of different techniques, including caulk, expanding spray foam, or, in the case of electrical boxes and fixtures, specific gaskets that are designed to fit the boxes.
3. Exhaust-vent covers: Dryer vents, range hood vents, bath fan vents, and other interior ventilation equipment typically terminate outside the house in a plastic or metal cover that has one or more louvers on it. The louvers are designed to be in the closed position whenever the fan is not in use, so that outside air doesn't leak in. Check all of these louvers to be sure they're closing completely, with no air leaks. If they aren't, you can adjust the spring tension to hold them closed more tightly; add foam weatherstripping tape for a more air-tight seal; or replace the entire vent cap with a new one.
4. Gaps around interior vents and recessed lights: Inside your home, heated air can be leaking out around that same ventilation equipment, where vent pipes pass through the walls or ceiling, or where vent covers meet wall and ceiling surfaces. Recessed light fixtures can also be real air-leakers. Around the vent pipes and recessed light cans, seal any gaps with caulking. For the vent covers and recessed light covers, remove the covers, then adjust the springs and/or add foam weatherstripping tape to create a tight seal between the cover and the ceiling.
5. Heat-duct penetrations: Gaps around heating-duct cans where they pass through the floor or wall allow cold air to enter from the crawl space, while gaps around ceiling-duct cans allow heated air to escape into the attic. To close those drafts, first remove the register, then use a combination of caulking and/or metallic duct sealant tape to close any gaps between the sheet metal cans and the floor, wall or ceiling surface.
6. Fireplaces and woodstoves: Lots of gaps can occur around these appliances. With a conventional fireplace, keep the damper closed except when burning a fire to prevent heated air from escaping up the chimney. Consider investing in a set of air-tight doors, which close off the air leaks and also make your fires more efficient. Look for gaps around woodstove and gas fireplace flue pipes, and air leaks around masonry chimneys. Use a metal collar if necessary around flue pipe penetrations, and seal gaps with heat-resistant sealant specially formulated for this application.
7. Attic and crawl space hatches: These can be real air losers if they're not weatherstripped, so take care of that with some foam tape. Make sure the hatches are insulated as well.
8. Interior doors to unheated spaces: If you have any interior doors that lead to unheated spaces, including basements, garages or attics, be sure the doors are weatherstripped to prevent air leakage. If possible, replace older, hollow-core doors with solid-core or, better yet, insulated metal doors.
9. Sill plates and penetrations: This one's not as easy to deal with, but it's well worth the effort to try to do whatever you can with it. Air can leak both into and out of the house through gaps where the sill plate meets the foundation or the siding, and around plumbing and wiring penetrations drilled through wall plates in various areas. If you have a gap between your siding and the bottom of your exterior wall, especially in older homes where the use of sill sealers was not a common practice, consider closing up this big air gap with a bead of caulking or expanding foam. In the basement, crawl space and attic, if you can access any of the pipes and wires that pass through the wall plates, seal the penetrations with expanding foam.
Wednesday, November 16, 2011
Should I sell my home in the winter?
We're getting close to the end of the year, which begs the question of whether it's worthwhile trying to sell your home now. Is it a waste of time? Will it sit on the market and become shopworn? Should I take my house off the market for the holidays? Will the home-sale market be better for sellers in 2012?
The first question you need to ask yourself is: Are you emotionally prepared to sell? Selling is a challenge for most sellers, although some markets are better than others. Unless you bought more than eight to 10 years ago and preserved your equity, you may not be able to sell for enough to pay off the mortgages secured against the property and the other costs of selling.
For sellers who have no additional assets, a short sale or foreclosure may be the only option. If so, first look into government programs that might help you out financially. Also, talk to your attorney and tax adviser.
Sellers who have the resources to make up the difference between the sale price and the amount they owe need to ask themselves if they are willing to pay the additional cash in order to sell and move on.
There are two reasons why you might prefer bringing cash to closing. One is that your credit will not be negatively impacted, as would be the case with a short sale or foreclosure. The second is that many buyers shy away from short sales because of the lengthy and uncertain process involved.
The next thing to consider is the condition of your home. Is it ready for the market? The most salable homes are those that are in move-in condition.
Before racing to the hardware store, ask your REALTOR® about how much competition there would be for your home if you put it on the market before the holidays. Some areas are shy on inventory of good homes on the market. If so, now could be a good time to sell.
HOUSE HUNTING TIP: The supply/demand ratio plays a significant role in the health of a local real estate market. No matter what is said about the housing market nationally, it's the local picture that tells the tale in terms of the possibility of selling your home at any given time.
Most sellers don't put their homes on the market during the last or first couple of months of the year. The inventory of homes for sale tends to dwindle during the winter months. Interest rates are low. So, if there are buyers in your local market, you may be at an advantage selling when most sellers are waiting.
Some sellers feel that if they've waited this long to sell, they should put the process on hold until spring and get the house ready in the meantime. Certainly, it's not a good idea to put your house on the market until it looks great. But if you and your house are ready to sell, move ahead.
The market in general tends to slow down over the holidays. But rather than pull your house off the market and miss a likely prospect, change the showing procedure to require advance notice. And enjoy your holidays. A sale before year end could be a great holiday gift.
There is a lot of pent-up demand, on both the buyer and seller sides. Sellers have been waiting for a better time to sell. Buyers have been waiting for more quality inventory and a sense that prices have bottomed or are close to it.
THE CLOSING: Recent projections call for another five or so years of bouncing along close to the bottom of this market cycle. Many experts believe that the big price declines are behind us. Who knows?
The first question you need to ask yourself is: Are you emotionally prepared to sell? Selling is a challenge for most sellers, although some markets are better than others. Unless you bought more than eight to 10 years ago and preserved your equity, you may not be able to sell for enough to pay off the mortgages secured against the property and the other costs of selling.
For sellers who have no additional assets, a short sale or foreclosure may be the only option. If so, first look into government programs that might help you out financially. Also, talk to your attorney and tax adviser.
Sellers who have the resources to make up the difference between the sale price and the amount they owe need to ask themselves if they are willing to pay the additional cash in order to sell and move on.
There are two reasons why you might prefer bringing cash to closing. One is that your credit will not be negatively impacted, as would be the case with a short sale or foreclosure. The second is that many buyers shy away from short sales because of the lengthy and uncertain process involved.
The next thing to consider is the condition of your home. Is it ready for the market? The most salable homes are those that are in move-in condition.
Before racing to the hardware store, ask your REALTOR® about how much competition there would be for your home if you put it on the market before the holidays. Some areas are shy on inventory of good homes on the market. If so, now could be a good time to sell.
HOUSE HUNTING TIP: The supply/demand ratio plays a significant role in the health of a local real estate market. No matter what is said about the housing market nationally, it's the local picture that tells the tale in terms of the possibility of selling your home at any given time.
Most sellers don't put their homes on the market during the last or first couple of months of the year. The inventory of homes for sale tends to dwindle during the winter months. Interest rates are low. So, if there are buyers in your local market, you may be at an advantage selling when most sellers are waiting.
Some sellers feel that if they've waited this long to sell, they should put the process on hold until spring and get the house ready in the meantime. Certainly, it's not a good idea to put your house on the market until it looks great. But if you and your house are ready to sell, move ahead.
The market in general tends to slow down over the holidays. But rather than pull your house off the market and miss a likely prospect, change the showing procedure to require advance notice. And enjoy your holidays. A sale before year end could be a great holiday gift.
There is a lot of pent-up demand, on both the buyer and seller sides. Sellers have been waiting for a better time to sell. Buyers have been waiting for more quality inventory and a sense that prices have bottomed or are close to it.
THE CLOSING: Recent projections call for another five or so years of bouncing along close to the bottom of this market cycle. Many experts believe that the big price declines are behind us. Who knows?
Tuesday, November 8, 2011
TIPS FOR MAINTAINING GOOD CREDIT
5 simple steps to managing healthier credit:
* Be a better credit manager – Take time to understand credit scoring.
... * Don't be late – Pay your bills on time.
* Regularly check your credit reports – Correct inaccuracies as soon as you spot them.
* Keep balances as low as possible – Your credit balances shouldn't be more than 35% of your available credit limits.
* Put time on your side – Establish a long history of paying your bills on time and using credit responsibly.
* Avoid excessive credit checks – Make sure to apply for new credit in moderation.
* Be a better credit manager – Take time to understand credit scoring.
... * Don't be late – Pay your bills on time.
* Regularly check your credit reports – Correct inaccuracies as soon as you spot them.
* Keep balances as low as possible – Your credit balances shouldn't be more than 35% of your available credit limits.
* Put time on your side – Establish a long history of paying your bills on time and using credit responsibly.
* Avoid excessive credit checks – Make sure to apply for new credit in moderation.
Monday, November 7, 2011
Pre-listing inspections won't make the deal, but they can help optimize your chances of closing the deal. Buyers are not going to buy a house they wouldn't consider otherwise because it has reports, but if they are debating between a property with a home inspection and another property, a clean bill of house health, documentation that needed repairs have been completed, or even reports showing what needs doing and a corresponding discount can help push buyers off the fence.
Deals fall apart because of condition issues not discovered until the transaction is partially underway. Sometimes, advance inspection reports can surface issues, allow you to get repairs completed and thus avoid that issue.
However, at other times, pre-listing inspections show issues too big for you to have repaired that will be deal-killers for almost any mortgage lender. In this case, you do yourself the favor of forgoing even bothering trying to get it past a mortgage lender and empower yourself to list it as a cash-only sale for a fixer-upper price.
However, once you obtain prelisting inspections, you will have a legal duty to provide information about any defects turned up to prospective buyers. That still might make sense, especially if the home is in great shape or you do elect to invest in necessary repairs. Just be aware that by obtaining the inspections you might heighten your own legal duties vis-Ã -vis making disclosures about the condition of the home.
Your pre-listing inspection won't replace the buyer's inspections. To be clear, whatever inspection(s) you obtain won't be the inspection -- it will just be an inspection. You'll want to expressly advise the buyer that the pre-listing inspections -- and I would encourage you to consider a pest inspection, property inspection and a roof inspection -- are for his information only.
You don't want the buyer to rely totally on it and forgo his own due diligence for liability reasons; your aim is to either verify the place is in good shape, clear the place of major repairs or brief them on why the property is being priced in that way and what they'll need to do (or won't need to do) later, assuming you can negotiate an as-is offer.
But you also want the buyer to still obtain his own inspections, so he can attend, ask questions, select the inspector and not fault you for anything that is missed. And you should work with your listing agent to require that the buyer sign your written advice to get his own inspections, as well as to make the property available to the buyer for just that purpose.
Deals fall apart because of condition issues not discovered until the transaction is partially underway. Sometimes, advance inspection reports can surface issues, allow you to get repairs completed and thus avoid that issue.
However, at other times, pre-listing inspections show issues too big for you to have repaired that will be deal-killers for almost any mortgage lender. In this case, you do yourself the favor of forgoing even bothering trying to get it past a mortgage lender and empower yourself to list it as a cash-only sale for a fixer-upper price.
However, once you obtain prelisting inspections, you will have a legal duty to provide information about any defects turned up to prospective buyers. That still might make sense, especially if the home is in great shape or you do elect to invest in necessary repairs. Just be aware that by obtaining the inspections you might heighten your own legal duties vis-Ã -vis making disclosures about the condition of the home.
Your pre-listing inspection won't replace the buyer's inspections. To be clear, whatever inspection(s) you obtain won't be the inspection -- it will just be an inspection. You'll want to expressly advise the buyer that the pre-listing inspections -- and I would encourage you to consider a pest inspection, property inspection and a roof inspection -- are for his information only.
You don't want the buyer to rely totally on it and forgo his own due diligence for liability reasons; your aim is to either verify the place is in good shape, clear the place of major repairs or brief them on why the property is being priced in that way and what they'll need to do (or won't need to do) later, assuming you can negotiate an as-is offer.
But you also want the buyer to still obtain his own inspections, so he can attend, ask questions, select the inspector and not fault you for anything that is missed. And you should work with your listing agent to require that the buyer sign your written advice to get his own inspections, as well as to make the property available to the buyer for just that purpose.
Friday, November 4, 2011
Foreclosures - What's happening
The percentage of homes in the foreclosure process continued to climb in September, even as delinquencies and foreclosure starts declined, according to the latest report from data aggregator Lender Processing Services Inc.
While fewer homes are entering the foreclosure pipeline, there's been an even more drastic slowdown in homes coming out the other end, due in large part to the "robo-signing" controversy, which has slowed the pace at which lenders can repossess homes and put them back on the market.
LPS said foreclosure starts were down 20 percent in September from a year ago, to 220,273, slightly below the three-year average. But foreclosure starts continue to outnumber foreclosure sales by a factor of more than three to one, reflecting the fact many homes are tied up in the system for months or years after lenders initiate foreclosure proceedings.
Foreclosure inventories continue to grow in judicial foreclosure states where courts handle foreclosure proceedings, with lenders taking an average 761 days to complete the foreclosure process on delinquent homeowners in those states -- six months longer than in nonjudicial states.
Nationwide, nearly 40 percent of homeowners in foreclosure had not made a payment in two years, and 72 percent had not made a payment in a year or more, LPS said.
LPS estimated there were 2.17 million homes in some stage of the foreclosure process at the end of September. That's 4.18 percent of all homes with mortgages and an 8.9 percent increase in the foreclosure rate, which stood at 3.84 percent at the same time a year ago.
Another 4.2 million homeowners were at least one payment behind on their mortgages. That's 8.09 percent of all homes with mortgages, down 12.7 percent from the 9.27 percent delinquency rate a year ago.
A bright spot in the report was that the number of seriously delinquent loans -- mortgages in arrears by 90 days or more but not yet in foreclosure -- continues to decline. While 1.84 million homeowners were seriously delinquent, that's down 39 percent from January 2010, when 3.06 million mortgages were on the verge of foreclosure.
The government is standing behind about half of seriously delinquent loans, either through Fannie Mae and Freddie Mac (19 percent) or Federal Housing Administration, U.S. Department of Agriculture and Department of Veterans Affairs loan guarantee programs (32 percent).
The rest are loans that were bundled into "private label" mortgage-backed securities (37 percent) or retained by lenders in their investment portfolios (12 percent).
While robo-signing has slowed down lender repossessions, many seriously delinquent homeowners are able to avoid foreclosure through loan modifications.
Lenders have signed off on about 2 million loan modifications since January 2010, LPS noted in reporting the downward trend in serious delinquencies. There's been a dramatic decline in the re-default rate on modified loans, with about nine out of 10 modifications resulting in reduced payments for borrowers.
Loan modifications could be less of a factor going forward, with both Home Affordable Modification Program (HAMP) and non-HAMP loan modifications down sharply in the second quarter from a year ago.
Total loan modifications were down 44 percent during the second quarter from a year ago, to 149,000, with HAMP modifications falling 35 percent and proprietary modifications down 50 percent.
A separate report by the Census Bureau showed the steady decline in the home ownership rate during the housing bust may have hit bottom during the third quarter.
At 66.3 percent, the home ownership rate during the third quarter was down 0.6 percentage points from a year ago, but up 0.4 percentage points from the second quarter, the Census Bureau said.
For decades, the rate of home ownership ranged between 63 and 66 percent, though it began a climb above normal rates in the mid-1990s and peaked at above 69 percent just before the housing bust.
Writing on the blog Calculated Risk, Bill McBride said decennial Census numbers suggest the actual home-ownership rate is now probably closer to the 64 to 65 percent range.
LPS estimates that the total number of U.S. first mortgages has declined by 6.8 percent since January 2008, when there were an estimated 55.7 million homes with mortgages.
Most of that drop -- a decline of nearly 3.8 million mortgages -- was presumably the result of elevated foreclosures and the lower home-ownership rate. Homes that go into lenders' real estate owned (REO) inventories or are purchased by investors in all-cash transactions don't have mortgages.
While some homeowners would also have paid off their mortgages in full and owned their homes outright, the total number of outstanding mortgages usually grows as the population and housing stock expands and first-time home buyers take out new loans.
While fewer homes are entering the foreclosure pipeline, there's been an even more drastic slowdown in homes coming out the other end, due in large part to the "robo-signing" controversy, which has slowed the pace at which lenders can repossess homes and put them back on the market.
LPS said foreclosure starts were down 20 percent in September from a year ago, to 220,273, slightly below the three-year average. But foreclosure starts continue to outnumber foreclosure sales by a factor of more than three to one, reflecting the fact many homes are tied up in the system for months or years after lenders initiate foreclosure proceedings.
Foreclosure inventories continue to grow in judicial foreclosure states where courts handle foreclosure proceedings, with lenders taking an average 761 days to complete the foreclosure process on delinquent homeowners in those states -- six months longer than in nonjudicial states.
Nationwide, nearly 40 percent of homeowners in foreclosure had not made a payment in two years, and 72 percent had not made a payment in a year or more, LPS said.
LPS estimated there were 2.17 million homes in some stage of the foreclosure process at the end of September. That's 4.18 percent of all homes with mortgages and an 8.9 percent increase in the foreclosure rate, which stood at 3.84 percent at the same time a year ago.
Another 4.2 million homeowners were at least one payment behind on their mortgages. That's 8.09 percent of all homes with mortgages, down 12.7 percent from the 9.27 percent delinquency rate a year ago.
A bright spot in the report was that the number of seriously delinquent loans -- mortgages in arrears by 90 days or more but not yet in foreclosure -- continues to decline. While 1.84 million homeowners were seriously delinquent, that's down 39 percent from January 2010, when 3.06 million mortgages were on the verge of foreclosure.
The government is standing behind about half of seriously delinquent loans, either through Fannie Mae and Freddie Mac (19 percent) or Federal Housing Administration, U.S. Department of Agriculture and Department of Veterans Affairs loan guarantee programs (32 percent).
The rest are loans that were bundled into "private label" mortgage-backed securities (37 percent) or retained by lenders in their investment portfolios (12 percent).
While robo-signing has slowed down lender repossessions, many seriously delinquent homeowners are able to avoid foreclosure through loan modifications.
Lenders have signed off on about 2 million loan modifications since January 2010, LPS noted in reporting the downward trend in serious delinquencies. There's been a dramatic decline in the re-default rate on modified loans, with about nine out of 10 modifications resulting in reduced payments for borrowers.
Loan modifications could be less of a factor going forward, with both Home Affordable Modification Program (HAMP) and non-HAMP loan modifications down sharply in the second quarter from a year ago.
Total loan modifications were down 44 percent during the second quarter from a year ago, to 149,000, with HAMP modifications falling 35 percent and proprietary modifications down 50 percent.
A separate report by the Census Bureau showed the steady decline in the home ownership rate during the housing bust may have hit bottom during the third quarter.
At 66.3 percent, the home ownership rate during the third quarter was down 0.6 percentage points from a year ago, but up 0.4 percentage points from the second quarter, the Census Bureau said.
For decades, the rate of home ownership ranged between 63 and 66 percent, though it began a climb above normal rates in the mid-1990s and peaked at above 69 percent just before the housing bust.
Writing on the blog Calculated Risk, Bill McBride said decennial Census numbers suggest the actual home-ownership rate is now probably closer to the 64 to 65 percent range.
LPS estimates that the total number of U.S. first mortgages has declined by 6.8 percent since January 2008, when there were an estimated 55.7 million homes with mortgages.
Most of that drop -- a decline of nearly 3.8 million mortgages -- was presumably the result of elevated foreclosures and the lower home-ownership rate. Homes that go into lenders' real estate owned (REO) inventories or are purchased by investors in all-cash transactions don't have mortgages.
While some homeowners would also have paid off their mortgages in full and owned their homes outright, the total number of outstanding mortgages usually grows as the population and housing stock expands and first-time home buyers take out new loans.
Thursday, October 27, 2011
Warming Up your HOME for Fall
1. Infuse your entrance with a dash of color. Arrange mums in orange, rust, purple and gold and grasses and grains for a harvest look. Finish with pumpkins and wreath on door.
2. Fill a copper pot with mums, or a shallow wood bowl with miniature grounds and pumpkins. Great for any table.
3. Mix and match some richly colored glass or pottery plates. Amber, amethyst or cranberry to spice up your table.
4. Place electric candle lights with colorful shades in open bookcases.
5. Dress up your dining room with seasonal place mats, runners and napkins.
6. Use an old quilt as a table cloth. Layer with heavy earthenware for a rustic look.
7. If you are worried about color, start with a touch at the back of your china cabinet. Wrap foam board with rich fabric and secure to the back wall for a backdrop to your pieces. It works well in a bookcases also.
8. Replace sleek summer slipcovers with heavier colors and fabrics like velvet or corduroy.
9. Add tapestry and brocade pillows in rich colors with tassels and fringe. Don't forget a mohair throw or a well worn quilt.
10. Add an old foot stool or ottoman to your family or living room.
11. Replace your being lamp shade for a deeper color. Add trim at the top and bottom for a custom look.
2. Fill a copper pot with mums, or a shallow wood bowl with miniature grounds and pumpkins. Great for any table.
3. Mix and match some richly colored glass or pottery plates. Amber, amethyst or cranberry to spice up your table.
4. Place electric candle lights with colorful shades in open bookcases.
5. Dress up your dining room with seasonal place mats, runners and napkins.
6. Use an old quilt as a table cloth. Layer with heavy earthenware for a rustic look.
7. If you are worried about color, start with a touch at the back of your china cabinet. Wrap foam board with rich fabric and secure to the back wall for a backdrop to your pieces. It works well in a bookcases also.
8. Replace sleek summer slipcovers with heavier colors and fabrics like velvet or corduroy.
9. Add tapestry and brocade pillows in rich colors with tassels and fringe. Don't forget a mohair throw or a well worn quilt.
10. Add an old foot stool or ottoman to your family or living room.
11. Replace your being lamp shade for a deeper color. Add trim at the top and bottom for a custom look.
Monday, October 24, 2011
Existing home sales rose year or year
Source: National Association of Realtors.
Existing-home sales rose year over year for the third straight month in September, according to the latest monthly report from the National Association of Realtors.
Sales of single-family homes, townhomes, condominiums and co-ops increased 11.3 percent last month to a seasonally adjusted annual rate of 4.91 million. Existing-home sales have been rising by double digits on an annual basis since July. On a monthly basis, sales fell 3 percent in September, compared with a 7.7 percent rise in August.
Nationwide, existing homes sold for a median $165,400 last month, down 3.5 percent from September 2010. Distressed homes, typically sold at discount, accounted for 30 percent of sales last month (18 percent were foreclosures, 12 percent were short sales), down from 35 percent a year ago, the report said.
Unsold inventory fell 2 percent in September to 3.48 million -- an 8.5-month supply at the current sales pace.
All-cash buyers, most of whom are investors, accounted for 30 percent of purchases last month, up slightly from 29 percent in September 2010, according to a separate NAR survey. Investors accounted for 19 percent of sales last month, up from 18 percent a year ago. First-time buyers made up 32 percent of sales, unchanged year over year.
Existing-home sales rose year over year for the third straight month in September, according to the latest monthly report from the National Association of Realtors.
Sales of single-family homes, townhomes, condominiums and co-ops increased 11.3 percent last month to a seasonally adjusted annual rate of 4.91 million. Existing-home sales have been rising by double digits on an annual basis since July. On a monthly basis, sales fell 3 percent in September, compared with a 7.7 percent rise in August.
Nationwide, existing homes sold for a median $165,400 last month, down 3.5 percent from September 2010. Distressed homes, typically sold at discount, accounted for 30 percent of sales last month (18 percent were foreclosures, 12 percent were short sales), down from 35 percent a year ago, the report said.
Unsold inventory fell 2 percent in September to 3.48 million -- an 8.5-month supply at the current sales pace.
All-cash buyers, most of whom are investors, accounted for 30 percent of purchases last month, up slightly from 29 percent in September 2010, according to a separate NAR survey. Investors accounted for 19 percent of sales last month, up from 18 percent a year ago. First-time buyers made up 32 percent of sales, unchanged year over year.
Wednesday, October 19, 2011
Why do you want to buy a home?
If you are in the market to buy a home of your own, you need to ask yourself one question: WHY?
It seems like a simple enough question yet it is not. Experts are predicting that, in many markets, prices will continue to soften (see our blog from yesterday). That has caused many buyers to stay on the fence of indecision hoping to buy at the optimum time. If the reason you are buying is to do a quick ‘flip’ of the property to make money, waiting most definitely makes sense.
What if the reason you are moving isn’t about finances however. Does it still make sense to delay? That depends on why you are buying. What if your purchase is more about improving the quality of life for you and your family? Or moving into a school district where your child’s talents will be maximized? Or being closer to friends and family? There is a cost to delaying any of these decisions.
We realize everyone wants to make a sound financial decision no matter the actual reason for moving. Delaying in a hope to ‘time’ the market might not make sense however. Forbes.com addressed this issue in an article by John E. Girouard last week:
“Trying to time the housing bottom is as much folly as trying to time stocks or any other investment vehicle. In fact, it’s greater folly because if housing prices do fall further, it’s likely to be because mortgage rates are rising, which would mean that over the long term that slightly lower price you may have paid could end up costing more in carrying costs than you saved.”
He went on to say:
“My answer to those who ask whether now’s the time to buy a house is that the American Dream is and always was alive and well. It has nothing to do with the direction of housing prices but everything to do with your financial situation, income stability, ability to shoulder the costs, and if the home you have your eye on is your version of the American Dream—a home you love that you hope to live in for an extended period.”
Bottom Line
Don’t make buying a home solely a financial decision. Is the real reason you want your own home more important than money? Only you know the answer.
It seems like a simple enough question yet it is not. Experts are predicting that, in many markets, prices will continue to soften (see our blog from yesterday). That has caused many buyers to stay on the fence of indecision hoping to buy at the optimum time. If the reason you are buying is to do a quick ‘flip’ of the property to make money, waiting most definitely makes sense.
What if the reason you are moving isn’t about finances however. Does it still make sense to delay? That depends on why you are buying. What if your purchase is more about improving the quality of life for you and your family? Or moving into a school district where your child’s talents will be maximized? Or being closer to friends and family? There is a cost to delaying any of these decisions.
We realize everyone wants to make a sound financial decision no matter the actual reason for moving. Delaying in a hope to ‘time’ the market might not make sense however. Forbes.com addressed this issue in an article by John E. Girouard last week:
“Trying to time the housing bottom is as much folly as trying to time stocks or any other investment vehicle. In fact, it’s greater folly because if housing prices do fall further, it’s likely to be because mortgage rates are rising, which would mean that over the long term that slightly lower price you may have paid could end up costing more in carrying costs than you saved.”
He went on to say:
“My answer to those who ask whether now’s the time to buy a house is that the American Dream is and always was alive and well. It has nothing to do with the direction of housing prices but everything to do with your financial situation, income stability, ability to shoulder the costs, and if the home you have your eye on is your version of the American Dream—a home you love that you hope to live in for an extended period.”
Bottom Line
Don’t make buying a home solely a financial decision. Is the real reason you want your own home more important than money? Only you know the answer.
Tuesday, October 18, 2011
Maryland Real Estate by Pamela DuBois: Maryland Real Estate by Pamela DuBois: Buying afte...
Maryland Real Estate by Pamela DuBois: Maryland Real Estate by Pamela DuBois: Buying afte...: Maryland Real Estate by Pamela DuBois: Buying after short sale : "FHA will allow a borrower to purchase another home immediately after a sho...
Home inspections
I think home inspections are very important for buyers to find out if there are any major issues with the property. A must for a first time home buyer. Some home inspectors will dissect a property and buyers need to know that there's no perfect property out there.
I once had a home inspector do an inspection and spoke as though everything he found was concrete and the house was falling apart. Yes, there were things that needed fixing and repairing. However, the house wasn't as horrible as he made it out to be. Sometimes the words they use can scare a buyer from buying the home. It's all about the delivery and the words the home inspector uses. The home inspector does not know everything about properties in general but some of them will act as though they do. You can get 5 home inspectors on the same property and they will all come up with something different.
Before choosing a home inspector, check out their background. As a first time buyer, don't rely on what they say as concrete. Every home has issues, even brand new homes will have issues. Some home inspectors will nit pick and scare you right out of buying the home.
Once the home inspection is done, go through the inspection and see what you would like to ask the seller to take care of that is reasonable. Are there things that you could take care of? It makes sense to ask for things to get repaired or replaced. Don't let a home inspector ruin a home that you loved when you put a contract on it.
I once had a home inspector do an inspection and spoke as though everything he found was concrete and the house was falling apart. Yes, there were things that needed fixing and repairing. However, the house wasn't as horrible as he made it out to be. Sometimes the words they use can scare a buyer from buying the home. It's all about the delivery and the words the home inspector uses. The home inspector does not know everything about properties in general but some of them will act as though they do. You can get 5 home inspectors on the same property and they will all come up with something different.
Before choosing a home inspector, check out their background. As a first time buyer, don't rely on what they say as concrete. Every home has issues, even brand new homes will have issues. Some home inspectors will nit pick and scare you right out of buying the home.
Once the home inspection is done, go through the inspection and see what you would like to ask the seller to take care of that is reasonable. Are there things that you could take care of? It makes sense to ask for things to get repaired or replaced. Don't let a home inspector ruin a home that you loved when you put a contract on it.
Monday, October 17, 2011
Maryland Real Estate by Pamela DuBois: Great time to buy!!!
Maryland Real Estate by Pamela DuBois: Great time to buy!!!: The overall economy has clearly hit a soft patch and the daily news regarding Europe is impacting the global market. The concerns regarding ...
Great time to buy!!!
The overall economy has clearly hit a soft patch and the daily news regarding Europe is impacting the global market. The concerns regarding the potential slowing of the U.S. recovery and Europe’s potential crisis manifests itself in exceptionally-low consumer confidence. The consumer confidence level is one of the primary challenges to home sales.
Although sales are impacted by lower consumer confidence, the market fundamentals support the idea that it’s a great time to buy. Mortgage rates remain at historic lows and the affordability index to buy a home is at all-time highs.
The “great time to buy” sentiment is supported by the fact that we are seeing a boom in investor demand for residential real estate. As investors look at their various choices of asset classes, they are making informed decisions and choosing residential real estate.
If investors are picking this time to buy homes, isn’t it a confirmation to all of us that it truly is a great time to buy? We may all look back at 2011-2012 and see it as the buying opportunity of a generation.
Saturday, October 15, 2011
Maryland Real Estate by Pamela DuBois: Buying vs renting
Maryland Real Estate by Pamela DuBois: Buying vs renting: Home prices have taken such a beating and demand for rental units has increased so much that it's now cheaper to buy a two-bedroom home than...
Buying vs renting
Home prices have taken such a beating and demand for rental units has increased so much that it's now cheaper to buy a two-bedroom home than to rent one in most major U.S. cities.
According to real estate web site Trulia, buying was cheaper than renting in 74% of the country's 50 largest cities in July. In just 12% of the cities, including New York, Seattle and San Francisco, renting was cheaper. In the remaining 14% of cities, renting was less expensive but close to the cost of buying.
In addition to a continuing decline in home prices, rock-bottom interest rates have added a lot of weight to the buy side of the scale. The overnight average rate for a 30-year fixed was just 4.19% on Monday, according to Bankrate.com. A 15-year fixed averaged just 3.43%.
Add in the tax perks of home ownership and for those who can afford it (and who can actually qualify for a loan), it certainly is a buyer's market.
"It's a personal decision, of course. But if you have a steady job and you are planning to stay for seven years or more and have enough cash to put 20% down and enough left over for seven or eight months of expenses, you're better off buying in most places," said Daisy Kong, a spokeswoman for Trulia.
Tuesday, October 11, 2011
Maryland Real Estate by Pamela DuBois: Real Estate Tips for Liens Against Title
Maryland Real Estate by Pamela DuBois: Real Estate Tips for Liens Against Title: Occasionally homeowners who are trying to sell their home are surprised to learn that their title is encumbered by a lien. There are several...
Maryland Real Estate by Pamela DuBois: Real Estate Tips for Liens Against Title
Maryland Real Estate by Pamela DuBois: Real Estate Tips for Liens Against Title: Occasionally homeowners who are trying to sell their home are surprised to learn that their title is encumbered by a lien. There are several...
Real Estate Tips for Liens Against Title
Occasionally homeowners who are trying to sell their home are surprised to learn that their title is encumbered by a lien. There are several types of liens; the most common are mechanic's or contractor's liens.
The lien (or debt) must be paid off in order to be cleared. If the owner prefers to challenge the lien, he can release it by posting a bond, pending adjudication. In some types of liens, a title search may disclose claims against the property by an ex-spouse or long-ago heir of a former owner. A simple "quitclaim" deed may be used in these cases. By signing the deed, the person involved signs over whatever rights he or she might have, without laying any claim to the property.
Most real estate transactions involve at least some minor unresolved issues on the part of either the buyer or the seller. This is where an experienced real estate agent can provide solutions to resolve the issues and conclude the sale.
Monday, October 10, 2011
Maryland Real Estate by Pamela DuBois: Buying a home new or buying old
Maryland Real Estate by Pamela DuBois: Buying a home new or buying old: Buying Land and New Construction >Buying New or Buying Old New homes typically have a higher sales price than comparable existing h...
Maryland Real Estate by Pamela DuBois: Buying a home new or buying old
Maryland Real Estate by Pamela DuBois: Buying a home new or buying old: Buying Land and New Construction >Buying New or Buying Old New homes typically have a higher sales price than comparable existing h...
Buying a home new or buying old
Buying Land and New Construction >Buying New or Buying Old
New homes typically have a higher sales price than comparable existing homes, and buyers are usually willing to spend more on a new home because of lower maintenance costs. Builders' warranties on new homes, when combined with a new roof, appliances, and major systems, usually make major repairs unnecessary and help to counter a slower initial rate of appreciation.
Census Bureau Housing Surveys suggests that operating costs are lowest for brand new homes and slightly higher for relatively new existing homes. Operating costs per square foot of living space are consistently higher for progressively older existing homes. Utility costs represent the largest factor in operating costs. Energy consumption per square foot depends on the size of the home, the insulation and quality of the windows, air leakage and the efficiency of the furnace.
New homes require fewer expenditures for routine maintenance. The cost of maintenance first increases with age, then declines, so you will generally spend less maintaining a home built before 1960 than for a home built between 1970 and 1975.
Sunday, October 9, 2011
Maryland Real Estate by Pamela DuBois: What Steve Jobs did for Real Estate
Maryland Real Estate by Pamela DuBois: What Steve Jobs did for Real Estate: Steve Jobs, Apple's guru and godfather for groundbreaking innovations, changed many industries, and he changed consumers' attitudes about te...
What Steve Jobs did for Real Estate
Steve Jobs, Apple's guru and godfather for groundbreaking innovations, changed many industries, and he changed consumers' attitudes about technology by making computers more accessible and friendly for the masses. He thought different.
Real estate has historically been an industry characterized as being on the back burner when it came to embracing new technologies. Apple's iPhone and iPad represented a grand paradigm shift for the real estate industry, consolidating many devices, applications, and the power of the Internet. Such devices have empowered real estate professionals to be more mobile -- and more productive and efficient in the field -- than ever.
And real estate professionals were early adopters in flocking to the iPhone, the iPad, and then to the copycat smartphones and tablets that jumped on Apple's bandwagon.
Steve Jobs and Real Estate
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Those devices were a logical path on the innovation timeline for Jobs considering his previous breakthroughs in miniaturizing and simplifying technologies, and his skill at defiantly slipping through the fingers of other technology titans at just the right moments.
His foresight, stubbornness and perseverance paid off, time and time again.
Jobs led Apple's birth and rebirth, and whether you're in the PC crowd or the Mac crowd, you can appreciate the impact he's had on the way we interact with technology and the way that technology empowers us to interact with one another.
Several Inman News columnists shared their thoughts on the passing of Steve Jobs:
"The iPhone and the iPad have been real game-changers for mobile professionals -- especially REALTORS®. On a personal level, the first computer I ever owned was an Apple IIe. I cannot imagine life without an iPod. I think I have owned one of those since the year they were invented, whenever that was. I love music."
--Teresa Boardman, Inman News columnist and real estate broker with Saint Paul Home Realty
"Steve Jobs caused me 10 years of having to endure my husband's 'Get a Mac' rant every time my PC crashed -- until I finally converted. After shifting everything over to Apple three years ago, my PowerBook doesn't seem any more intuitive to me than the first punch cards I used to run my doctoral research on a giant mainframe.
"And I would never, never go back to using a PC. No more crashes, no anti-virus software required, a bounce feature in email that helps me eliminate spammers, customer service that outshines anything else in the industry. Everything works together: my laptop, iPad, and iPhone.
"Mr. Jobs, your vision has changed the world for the better for billions of people. Rest in peace."
--Bernice Ross, Inman News columnist and CEO of RealEstateCoach.com
"The world lost one of its greatest leaders and innovators. Steve's passion touched people and his products changed their lives. He truly put a ding in the universe."
--Tom Flanagan, Inman News columnist and director of information technology for Residential Properties Ltd.
Washington DC one of the top areas in Real Esate
http://www.inman.com/news/2011/09/30/state-state-list-most-searched-real-estate-prices
Thursday, October 6, 2011
Monday, July 25, 2011
Maryland Real Estate by Pamela DuBois: Bank of America in charge of it all???
Maryland Real Estate by Pamela DuBois: Bank of America in charge of it all???: "Bank of America for a new loan or Bank of America as a short sale lender? I can't believe that we've given so much to Bank of America. I'm ..."
Bank of America in charge of it all???
Bank of America for a new loan or Bank of America as a short sale lender? I can't believe that we've given so much to Bank of America. I'm the listing agent on a case that the buyer chose BOA. This was 60 days ago. Everyone in my office warned me against going with BOA. Unfortunately, since I was the listing agent, I had no choice in what lender the buyer chose. I told the selling agent in the beginning, please have your buyer use another lender. Here we sit after 60 days and still no approval. The file has been in underwriting and then it comes back out for conditions, then it goes back in and comes out with more and difference conditions that the buyer has to get to them. It's been a nightmare. I can't even imagine what the buyer is going through with them.
I also have BOA as a mortgage holder for a short sale. After faxing and re-faxing documents for 2 months in this process, I was told on Monday of last week that I have to start the process over because they've been giving me incorrect information and the file should have been sent through a different system. I literally felt like I was in the twilight zone. I couldn't believe what I hearing after dealing with the short sale department for two months. I just hope the buyer of the property stays around to see this through.
I hope everyone else is having better experiences with BOA.
I also have BOA as a mortgage holder for a short sale. After faxing and re-faxing documents for 2 months in this process, I was told on Monday of last week that I have to start the process over because they've been giving me incorrect information and the file should have been sent through a different system. I literally felt like I was in the twilight zone. I couldn't believe what I hearing after dealing with the short sale department for two months. I just hope the buyer of the property stays around to see this through.
I hope everyone else is having better experiences with BOA.
Wednesday, June 29, 2011
Maryland Real Estate by Pamela DuBois: Buying after short sale
Maryland Real Estate by Pamela DuBois: Buying after short sale: "FHA will allow a borrower to purchase another home immediately after a short sale IF their mortgage was not delinquent in the last 12 months..."
Buying after short sale
FHA will allow a borrower to purchase another home immediately after a short sale IF their mortgage was not delinquent in the last 12 months.
If there were any late mortgage payments in the last 12 months, BUT the mortgage has been brought current at the time of short sale, the FHA will allow purchase after one year.
If mortgage is past due at the time of short sale, the buyer must wait 3 years. However, exceptions can be made to the 3 year waiting period if the cause of the short sale is deemed to be related to circumstances beyond the buyer's control.
Examples include: medical illness, loss of primary wage earner's job, death, etc.
If there were any late mortgage payments in the last 12 months, BUT the mortgage has been brought current at the time of short sale, the FHA will allow purchase after one year.
If mortgage is past due at the time of short sale, the buyer must wait 3 years. However, exceptions can be made to the 3 year waiting period if the cause of the short sale is deemed to be related to circumstances beyond the buyer's control.
Examples include: medical illness, loss of primary wage earner's job, death, etc.
Monday, June 27, 2011
Maryland Real Estate by Pamela DuBois: Buyers are having to compete again to buy a home
Maryland Real Estate by Pamela DuBois: Buyers are having to compete again to buy a home: "With all the bad news about the housing market, it may come to as a surprise that the Washington DC areas home buyers may run into a bidding..."
Buyers are having to compete again to buy a home
With all the bad news about the housing market, it may come to as a surprise that the Washington DC areas home buyers may run into a bidding war. It has been happening more frequently lately. I wrote an offer on a property in Germantown, MD and there were 10 other offers on this property. The properties that are price slightly lower than market and is in good condition is likely to get more than one offer. One of things I've also noticed is there is a shortage of properties, good properties, priced right.
I actually had a buyer say to me today, "I thought it was a buyer's market". I explained there's a shortage of good properties at good prices. She mentioned she was on the computer a long time last night looking for properties and couldn't find anything that she was looking for.
Today’s bidding is not the same as it was a few years ago. It was easy to get a loan then. With today's strict lending guidelines, buyers have to be sure they are able to get a loan if are going to bid over the sale price.
So yes, it's great news to see multiple offers on properties. The Real Estate market will help move things in a positive direction for our economy.
I actually had a buyer say to me today, "I thought it was a buyer's market". I explained there's a shortage of good properties at good prices. She mentioned she was on the computer a long time last night looking for properties and couldn't find anything that she was looking for.
Today’s bidding is not the same as it was a few years ago. It was easy to get a loan then. With today's strict lending guidelines, buyers have to be sure they are able to get a loan if are going to bid over the sale price.
So yes, it's great news to see multiple offers on properties. The Real Estate market will help move things in a positive direction for our economy.
Monday, June 20, 2011
Maryland Real Estate by Pamela DuBois: Buying versus renting
Maryland Real Estate by Pamela DuBois: Buying versus renting: "It is cheaper to buy a home than to rent one in 39 of the nation's 50 largest cities. The median list price with the median rent on two-bed..."
Maryland Real Estate by Pamela DuBois: Maryland Real Estate by Pamela DuBois: Why buy now...
Maryland Real Estate by Pamela DuBois: Maryland Real Estate by Pamela DuBois: Why buy now...: "Maryland Real Estate by Pamela DuBois: Why buy now : 'In 2006 the high prices and higher interest rates restricted many buyers from purchasi..."
Tuesday, June 14, 2011
Maryland Real Estate by Pamela DuBois: Why buy now
Maryland Real Estate by Pamela DuBois: Why buy now: "In 2006 the high prices and higher interest rates restricted many buyers from purchasing. As the market started to deteriorate, which resul..."
Why buy now
In 2006 the high prices and higher interest rates restricted many buyers from purchasing. As the market started to deteriorate, which resulted in declining values and lower interest rates, many buyers have been taking advantage of the market.
But still the opportunities are not being seized by buyers and some real estate professionals feel that it's because there is confusion in the marketplace. Buyers are uncertain whether they would qualify and whether now is a good time to be purchasing a home.
All markets are different and every situation is different. The only certain way to determine would be to investigate your individual situation. You owe it to yourself and your family to visit with a real estate professional who can show you the real cost of housing and recommend a lender.
Real Estate long term has always been a good investment. Take advantage of the low rates and home prices today.
But still the opportunities are not being seized by buyers and some real estate professionals feel that it's because there is confusion in the marketplace. Buyers are uncertain whether they would qualify and whether now is a good time to be purchasing a home.
All markets are different and every situation is different. The only certain way to determine would be to investigate your individual situation. You owe it to yourself and your family to visit with a real estate professional who can show you the real cost of housing and recommend a lender.
Real Estate long term has always been a good investment. Take advantage of the low rates and home prices today.
Thursday, May 26, 2011
Maryland Real Estate by Pamela DuBois: Getting pre-approved buy finding your dream home
Maryland Real Estate by Pamela DuBois: Getting pre-approved buy finding your dream home: "A long time ago, you would find the perfect home and then try to find the loan to fit your needs. In today's market, you have to find the p..."
Getting pre-approved buy finding your dream home
A long time ago, you would find the perfect home and then try to find the loan to fit your needs. In today's market, you have to find the perfect loan before you find the perfect home. With so many changes in the lending business, it's important to make sure you have a secured loan that best suits your needs.
I can provide you with the names of several mortgage lenders and can help you compare their programs. Some lenders may have great rates, but may have very conservative standards for qualifying customers. Others may be more willing to consider people who are marginally qualified or have less-than-perfect credit histories. Some lenders have local underwriters and can process loans quickly, while others may need extra time to process paperwork. The ordinary consumer deals with only a few mortgage lenders over a lifetime but I deal with many lenders every month. I can help you match your individual needs to the many offerings in this complicated marketplace.
Working with referrals and people you can trust will help make your home buying process smooth.
I can provide you with the names of several mortgage lenders and can help you compare their programs. Some lenders may have great rates, but may have very conservative standards for qualifying customers. Others may be more willing to consider people who are marginally qualified or have less-than-perfect credit histories. Some lenders have local underwriters and can process loans quickly, while others may need extra time to process paperwork. The ordinary consumer deals with only a few mortgage lenders over a lifetime but I deal with many lenders every month. I can help you match your individual needs to the many offerings in this complicated marketplace.
Working with referrals and people you can trust will help make your home buying process smooth.
Thursday, May 19, 2011
Maryland Real Estate by Pamela DuBois: Selling a home in Montgomery County, MD
Maryland Real Estate by Pamela DuBois: Selling a home in Montgomery County, MD: "Selling a home can be a stressful experience or a happy experience. Making the decision to sell is a big decision, whether it's for moving..."
Selling a home in Montgomery County, MD
Selling a home can be a stressful experience or a happy experience.
Making the decision to sell is a big decision, whether it's for moving up or job transfer to a different area. It may be an emotional parting. After all, leaving the place you’ve raised a family and built friendships has to be a very hard decision. Then again, you may be happy to leave where you are and move on to a new start with new beginnings. It's a happy experience and you are ready to move on. The change may be something that you're looking forward to....ready to move on....
In the past few months, I've met with sellers that are happy to be able to move on with a new start. It's not always a stressful experience. Lately it's been about getting rid of a higher mortgage and a home that is going down in value.
There are lots of emotions out there in the Real Estate world.
Making the decision to sell is a big decision, whether it's for moving up or job transfer to a different area. It may be an emotional parting. After all, leaving the place you’ve raised a family and built friendships has to be a very hard decision. Then again, you may be happy to leave where you are and move on to a new start with new beginnings. It's a happy experience and you are ready to move on. The change may be something that you're looking forward to....ready to move on....
In the past few months, I've met with sellers that are happy to be able to move on with a new start. It's not always a stressful experience. Lately it's been about getting rid of a higher mortgage and a home that is going down in value.
There are lots of emotions out there in the Real Estate world.
Maryland Real Estate by Pamela DuBois: Buying a Home in Montgomery County, MD
Maryland Real Estate by Pamela DuBois: Buying a Home in Montgomery County, MD: "Buying a home requires careful planning and I take this job very seriously. Many factors can affect the present and future value of a home. ..."
Buying a Home in Montgomery County, MD
Buying a home requires careful planning and I take this job very seriously. Many factors can affect the present and future value of a home. I can help you find the right home, help you negotiate for the best home price, and give you a report of the homes in the neighborhood, what is being offered and what they've sold for in the recent months. I can also provide you with a list of reputable lenders with programs that will best fit your needs for this process. I am an Acredited Buyer's Agent. I will help you throughout the buying process and do everything possible to make sure you have a smooth, stress free experience in buying your home, whether it be your first or you're moving up OR buying investment property.
Maryland Real Estate by Pamela DuBois: Home prices are low, interest rates are low - real...
Maryland Real Estate by Pamela DuBois: Home prices are low, interest rates are low - real...: "Home prices are low, interest rates are low - real estate is basically having a summer clearance sale! But unlike buying a clearance-priced ..."
Home prices are low, interest rates are low - real estate is basically having a summer clearance sale! But unlike buying a clearance-priced car or computer, making the wrong move in this real estate sale can have disastrous effects, from losing your dream home due to a bad bid to ending up with a money pit of a property. Here are a few money-saving, pitfall-avoiding tips and tricks for buyers who want to do some smart home shopping this summer.
If there's work to do in the home, get an estimate of what it's going to cost you from a professional in the field instead of estimating yourself. This will give you a clear idea of whether the property is worth it or not once you have an estimate of how much it's going to cost you.
Know the market and the area where you are buying so you don't over-bid on a property that is a foreclosure or short sale. There may be more than one offers on those homes.
Check with reputable lenders on rates and programs that will help with the lowest monthly payment.
It's a great time to buy, the rates are low and there are some great deals out there. Take advantage of the owning your first home or moving up into another home.
If there's work to do in the home, get an estimate of what it's going to cost you from a professional in the field instead of estimating yourself. This will give you a clear idea of whether the property is worth it or not once you have an estimate of how much it's going to cost you.
Know the market and the area where you are buying so you don't over-bid on a property that is a foreclosure or short sale. There may be more than one offers on those homes.
Check with reputable lenders on rates and programs that will help with the lowest monthly payment.
It's a great time to buy, the rates are low and there are some great deals out there. Take advantage of the owning your first home or moving up into another home.
Tuesday, May 17, 2011
Maryland Real Estate by Pamela DuBois: The most important thing to look for when you are ...
Maryland Real Estate by Pamela DuBois: The most important thing to look for when you are ...: "The most important thing to look for when you are shopping for a mortgage is the interest rate, right? Not necessarily. There are many other..."
The most important thing to look for when you are shopping for a mortgage is the interest rate, right? Not necessarily. There are many other factors to consider, including the lender's charges for making the loan, the terms under which the loan will be approved, and the lender's reputation for timely completion of loan applications to meet purchase agreement deadlines.
When I'm involved in sales transactions, I will give you companies that have a good reputation and can get the job done for you. I can provide the names of established lenders in the area who have provided good service to my customers. They can give general information about the different mortgage options that are available today. Using a low interest rate as the main criteria for choosing a mortgage could cost you money--and perhaps the home you want--if the company cannot deliver on its promises.
I make sure you work with someone that is reputable and can give you market rates. They believe in helping you get the best rate and will help in making sure it's stress free as possible.
When I'm involved in sales transactions, I will give you companies that have a good reputation and can get the job done for you. I can provide the names of established lenders in the area who have provided good service to my customers. They can give general information about the different mortgage options that are available today. Using a low interest rate as the main criteria for choosing a mortgage could cost you money--and perhaps the home you want--if the company cannot deliver on its promises.
I make sure you work with someone that is reputable and can give you market rates. They believe in helping you get the best rate and will help in making sure it's stress free as possible.
Saturday, May 14, 2011
Maryland Real Estate by Pamela DuBois: Mortgage Rates are Lowest in Decades - Buy a home ...
Maryland Real Estate by Pamela DuBois: Mortgage Rates are Lowest in Decades - Buy a home ...: "While nobody can accurately predict what the future holds for mortgage interest rates, the fact remains that they are historically low. It ..."
Mortgage Rates are Lowest in Decades - Buy a home NOW
While nobody can accurately predict what the future holds for mortgage interest rates, the fact remains that they are historically low. It is difficult to justify the risk in floating when the excellent rates currently available are a sure thing.
Timing is one of the most important factors in success. Unfortunately, knowing the perfect time to lock in a loan is impossible until after the fact. While analysts constantly try to predict the future, the bottom line is they continually fall short in terms of accuracy. Recent history is a testament to this. At the end of last year analysts overwhelming predicted low rates for the months ahead. The first quarter of this year saw rates generally increase. Fortunately there has been a recent reprieve but things still remain volatile. The movements over the past 5 months show the challenge of making predictions.
The good news is that the current low interest rates are here now. It is possible for rates to improve. However, if rates move higher, they are likely to spike fast and furiously with inflation fears looming. A cautious approach is necessary to protect against market volatility.
Take advantage of these lows rates while they last. Don't wait for it to go lower because it may just go up. A risk that may not be worth it.
Timing is one of the most important factors in success. Unfortunately, knowing the perfect time to lock in a loan is impossible until after the fact. While analysts constantly try to predict the future, the bottom line is they continually fall short in terms of accuracy. Recent history is a testament to this. At the end of last year analysts overwhelming predicted low rates for the months ahead. The first quarter of this year saw rates generally increase. Fortunately there has been a recent reprieve but things still remain volatile. The movements over the past 5 months show the challenge of making predictions.
The good news is that the current low interest rates are here now. It is possible for rates to improve. However, if rates move higher, they are likely to spike fast and furiously with inflation fears looming. A cautious approach is necessary to protect against market volatility.
Take advantage of these lows rates while they last. Don't wait for it to go lower because it may just go up. A risk that may not be worth it.
Monday, May 9, 2011
Buyers - Mortgage Rates are the lowest in decades - Buy NOW
Mortgage rates dropped for the third week in a row to their lowest point this year on signs of economic weakness, Freddie Mac said in releasing the results of its latest Primary Mortgage Market Survey.
Rates on 30-year fixed-rate mortgages averaged 4.71 percent with an average 0.7 point for the week ending May 5, down from 4.78 percent last week and 5 percent a year ago.
The 30-year fixed-rate mortgage hit an all-time low in Freddie Mac records dating to 1971 of 4.17 percent during the week ending Nov. 11, 2010, and so far this year has ranged from 4.71 percent in early January to a high of 5.05 percent in February.
Rates on 15-year fixed-rate mortgages averaged 3.89 percent with an average 0.7 point, down from 3.97 percent last week and 4.36 percent a year ago. That's a new low for 2011, but well above the all-time low in records dating back to 1991 of 3.57 percent, set in November.
Rates on 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) loans averaged 3.47 percent with an average 0.6 point, down from 3.51 percent last week and 3.97 percent a year ago. The 5-year ARM hit a low in records dating to 2005 of 3.25 percent in November.
Rates on 30-year fixed-rate mortgages averaged 4.71 percent with an average 0.7 point for the week ending May 5, down from 4.78 percent last week and 5 percent a year ago.
The 30-year fixed-rate mortgage hit an all-time low in Freddie Mac records dating to 1971 of 4.17 percent during the week ending Nov. 11, 2010, and so far this year has ranged from 4.71 percent in early January to a high of 5.05 percent in February.
Rates on 15-year fixed-rate mortgages averaged 3.89 percent with an average 0.7 point, down from 3.97 percent last week and 4.36 percent a year ago. That's a new low for 2011, but well above the all-time low in records dating back to 1991 of 3.57 percent, set in November.
Rates on 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) loans averaged 3.47 percent with an average 0.6 point, down from 3.51 percent last week and 3.97 percent a year ago. The 5-year ARM hit a low in records dating to 2005 of 3.25 percent in November.
Thursday, May 5, 2011
Loans and down-payment programs can help you buy a home
The lending industry has tightened their criterias. However, there are still programs available to help you get into a home. Rent prices are on the rise and despite all the news, you can still buy and get help with closing and down-payment.
Nationwide, rents started edging up last year after several years of little growth or even declines, market researcher Reis says. It predicts apartment rents will jump 4.3% this year, marking the biggest annual increase in four years. MPF Research, which also monitors apartment rents, expects them to rise more than 5% this year, says Greg Willett, MPF Research vice president.
Job growth is driving much of the increase. As more people get jobs, people who doubled up in homes during the recession, especially younger workers, move out on their own, says Ryan Severino, Reis senior economist. Many of those workers are choosing to rent rather than to buy, because of dropping U.S. home values and tight lending standards that make it harder to buy homes, Severino says.
Lack of construction is also helping rents. This year, just 40,000 new apartment units are expected to be added to the U.S. supply, Reis says. That's down from about 130,000 new units each year for much of the past decade.
Apartments make up about half the nation's rental supply, Willett says. Single-family homes and condominiums account for the rest.
Take time to investigate about buying instead of renting. You may be happy with the results.
Nationwide, rents started edging up last year after several years of little growth or even declines, market researcher Reis says. It predicts apartment rents will jump 4.3% this year, marking the biggest annual increase in four years. MPF Research, which also monitors apartment rents, expects them to rise more than 5% this year, says Greg Willett, MPF Research vice president.
Job growth is driving much of the increase. As more people get jobs, people who doubled up in homes during the recession, especially younger workers, move out on their own, says Ryan Severino, Reis senior economist. Many of those workers are choosing to rent rather than to buy, because of dropping U.S. home values and tight lending standards that make it harder to buy homes, Severino says.
Lack of construction is also helping rents. This year, just 40,000 new apartment units are expected to be added to the U.S. supply, Reis says. That's down from about 130,000 new units each year for much of the past decade.
Apartments make up about half the nation's rental supply, Willett says. Single-family homes and condominiums account for the rest.
Take time to investigate about buying instead of renting. You may be happy with the results.
Tuesday, May 3, 2011
Maryland Real Estate by Pamela DuBois: Homes are selling despite what the media is saying...
Maryland Real Estate by Pamela DuBois: Homes are selling despite what the media is saying...: "One of the biggest misconceptions in today’s housing market is that homes are not selling. That is simply not true. Last month’s Existing Sa..."
Maryland Real Estate by Pamela DuBois: Homes are selling despite what the media is saying...
Maryland Real Estate by Pamela DuBois: Homes are selling despite what the media is saying...: "One of the biggest misconceptions in today’s housing market is that homes are not selling. That is simply not true. Last month’s Existing Sa..."
Homes are selling despite what the media is saying
One of the biggest misconceptions in today’s housing market is that homes are not selling. That is simply not true. Last month’s Existing Sales Report from the National Association of Realtors (NAR) showed that homes were selling at an “annual rate of 5.10 million”. That’s an average of 13,973 every day – 365 days a year!
And the monthly Pending Sales Report, which measures the number of houses going into contract each month, has showed increases in six of the last nine months prompting Lawrence Yun, NAR’s chief economist to say:
“Since reaching a cyclical bottom last June, pending home sales have posted an overall gain of 24 percent and demonstrate the market is recovering on its own. The index means modest near-term gains in existing-home sales are likely.”
We realize that 40% of the sales are distressed properties and that 22% of buyers are investors. Yet, that still doesn’t negate the fact that homes are in fact selling… and 60% of them are NOT foreclosures or short sales.
And Yun believes this uptick will continue:
“Based on the current uptrend with very favorable affordability conditions, rising apartment rents and ongoing job creation, existing-home sales should rise around 5 to 10 percent this year.”
Bottom Line
Homes are selling. You probably will need to offer a compelling price if you put your house on the market. But if you do, it will sell.
And the monthly Pending Sales Report, which measures the number of houses going into contract each month, has showed increases in six of the last nine months prompting Lawrence Yun, NAR’s chief economist to say:
“Since reaching a cyclical bottom last June, pending home sales have posted an overall gain of 24 percent and demonstrate the market is recovering on its own. The index means modest near-term gains in existing-home sales are likely.”
We realize that 40% of the sales are distressed properties and that 22% of buyers are investors. Yet, that still doesn’t negate the fact that homes are in fact selling… and 60% of them are NOT foreclosures or short sales.
And Yun believes this uptick will continue:
“Based on the current uptrend with very favorable affordability conditions, rising apartment rents and ongoing job creation, existing-home sales should rise around 5 to 10 percent this year.”
Bottom Line
Homes are selling. You probably will need to offer a compelling price if you put your house on the market. But if you do, it will sell.
Maryland Real Estate by Pamela DuBois: Helping buyers find the right home
Maryland Real Estate by Pamela DuBois: Helping buyers find the right home: "When I help prospective buyers locate a new home I listen carefully to their goals. What are their criteria for selecting a neighborhood, wh..."
Helping buyers find the right home
When I help prospective buyers locate a new home I listen carefully to their goals. What are their criteria for selecting a neighborhood, what style of house do they prefer, what price range and floor plan meet their needs? Will any special considerations go into making the home buying decision? When I have a good picture of what the buyer wants, I will go to work to find the best property on the market that will accommodate those needs.
I succeed when I can make the buyers' goals my goals. Finding the perfect home is a collaborative effort. The buyers communicate what they want, why they want it, and where compromise might be possible, and I listen carefully to select the homes that come as close as possible to meeting the needs expressed. When there is trust and communication between the buyers and myself, miracles can happen! Creating these miracles for buyers and sellers is "Job #1" for us.
I succeed when I can make the buyers' goals my goals. Finding the perfect home is a collaborative effort. The buyers communicate what they want, why they want it, and where compromise might be possible, and I listen carefully to select the homes that come as close as possible to meeting the needs expressed. When there is trust and communication between the buyers and myself, miracles can happen! Creating these miracles for buyers and sellers is "Job #1" for us.
Saturday, April 30, 2011
Maryland Real Estate by Pamela DuBois: Buying versus renting
Maryland Real Estate by Pamela DuBois: Buying versus renting: "It is cheaper to buy a home than to rent one in 39 of the nation's 50 largest cities. The median list price with the median rent on two-bed..."
Buying versus renting
It is cheaper to buy a home than to rent one in 39 of the nation's 50 largest cities.
The median list price with the median rent on two-bedroom apartments, condominiums and town homes listed are close enough that owning makes more sense.
With home prices nearing a double dip and more foreclosures expected to flood the housing market over the next two years, the decision between renting and buying a home across most of the country has clearly moved in favor of buying.
As we head into the summer buying season, those looking to buy a home should be encouraged by improvements in the market and feel optimistic about their chances of finding an affordable home -- much more so than in previous years.
Interest rates is the lowest it's been in DECADES. Not to mention the homes prices and the deals that are to be made in this market. Also considering tax benefits for owning your own home as oppose to renting.
The median list price with the median rent on two-bedroom apartments, condominiums and town homes listed are close enough that owning makes more sense.
With home prices nearing a double dip and more foreclosures expected to flood the housing market over the next two years, the decision between renting and buying a home across most of the country has clearly moved in favor of buying.
As we head into the summer buying season, those looking to buy a home should be encouraged by improvements in the market and feel optimistic about their chances of finding an affordable home -- much more so than in previous years.
Interest rates is the lowest it's been in DECADES. Not to mention the homes prices and the deals that are to be made in this market. Also considering tax benefits for owning your own home as oppose to renting.
Thursday, April 28, 2011
Maryland Real Estate by Pamela DuBois: Tips for First time buyers - 10 commandments
Maryland Real Estate by Pamela DuBois: Tips for First time buyers - 10 commandments: "A good friend shared this with me today. Things that you shouldn't do if you're in the process of getting qualified to buy a home. These a..."
Tips for First time buyers - 10 commandments
A good friend shared this with me today. Things that you shouldn't do if you're in the process of getting qualified to buy a home. These are very important and I'd like to share with you.
1. Thou Shalt NOT change jobs or become self employed
2. Thou Shalt NOT buy a Car, Truck or Van unless you plan to live in it
3. Thou Shalt NOT use credit cards or let payments fall behind
4. Thou Shalt NOT spend the money you have saved for your down payment
5. Thou Shalt NOT omit debts or liabilities from your loan application
6. Thou Shalt NOT buy furniture even on deferred payment plans until after the closing or purchase anything on credit until after the loan closing
7. Thou Shalt NOT originate any new inquiries against your credit report
8. Thou Shalt NOT make large deposits into or out of your checking account with out consulting your loan officer
9. Thou Shalt NOT change bank accounts
10. Thou Shalt NOT Co-sign a loan for anyone
These things are very important in making sure you stay qualified for the home you are buying. Believe me, I've seen so many of these done. Congratulations of your home purchase.
1. Thou Shalt NOT change jobs or become self employed
2. Thou Shalt NOT buy a Car, Truck or Van unless you plan to live in it
3. Thou Shalt NOT use credit cards or let payments fall behind
4. Thou Shalt NOT spend the money you have saved for your down payment
5. Thou Shalt NOT omit debts or liabilities from your loan application
6. Thou Shalt NOT buy furniture even on deferred payment plans until after the closing or purchase anything on credit until after the loan closing
7. Thou Shalt NOT originate any new inquiries against your credit report
8. Thou Shalt NOT make large deposits into or out of your checking account with out consulting your loan officer
9. Thou Shalt NOT change bank accounts
10. Thou Shalt NOT Co-sign a loan for anyone
These things are very important in making sure you stay qualified for the home you are buying. Believe me, I've seen so many of these done. Congratulations of your home purchase.
Wednesday, April 27, 2011
Maryland Real Estate by Pamela DuBois: Real Estate by Pam: Help someone avoid foreclosure...
Maryland Real Estate by Pamela DuBois: Real Estate by Pam: Help someone avoid foreclosure...: "Real Estate by Pam: Help someone avoid foreclosure. : 'Many people have the impression that most real estate agents only care about themselv..."
Tuesday, April 26, 2011
Maryland Real Estate by Pamela DuBois: What to do if you are selling your home in today's...
Maryland Real Estate by Pamela DuBois: What to do if you are selling your home in today's...: "In today's super-competitive real estate market, any little edge to help potential buyers envision themselves in the house you're trying to ..."
Monday, April 25, 2011
Maryland Real Estate by Pamela DuBois: Short sales and avoiding foreclosure
Maryland Real Estate by Pamela DuBois: Short sales and avoiding foreclosure: "While the D.C. metro area is at the forefront of the housing recovery, even this market has some areas where distressed properties make up a..."
Short sales and avoiding foreclosure
While the D.C. metro area is at the forefront of the housing recovery, even this market has some areas where distressed properties make up a large portion of the market. Various sources suggest that in 2011, distressed properties could make up 35 percent or more of the nation’s home sales. While short sales and foreclosures aren’t for everyone, buyers should understand the impact of excluding these from their shopping lists.
Buyers should explore the nature of short sale transactions and why they should not be afraid to engage with these properties. With the right approach and reasonable expectations, buyers of short sales could land a deal—especially when coupled with today’s ideal affordability conditions. It's an opportunity for buyers to get a great deal and for sellers to avoid foreclosure.
Buyers should explore the nature of short sale transactions and why they should not be afraid to engage with these properties. With the right approach and reasonable expectations, buyers of short sales could land a deal—especially when coupled with today’s ideal affordability conditions. It's an opportunity for buyers to get a great deal and for sellers to avoid foreclosure.
Maryland Real Estate by Pamela DuBois: What to do if you are selling your home in today's...
Maryland Real Estate by Pamela DuBois: What to do if you are selling your home in today's...: "In today's super-competitive real estate market, any little edge to help potential buyers envision themselves in the house you're trying to ..."
What to do if you are selling your home in today's competitive Real Estate market
In today's super-competitive real estate market, any little edge to help potential buyers envision themselves in the house you're trying to sell can make a difference.
That's why I think "depersonalizing" when you put your house up for sale.
There are key steps -- besides putting a realistic, post-housing bubble asking price on the property -- that can make a house stand out amid an immense inventory of "for sale" signs.
Keep in mind that the buyer has a lot of choices in today's market. It's most likely the shiny apple that's going to get picked. It's the same with houses. It's to a seller's benefit to make their house shine. It absolutely is.
How do you make it shine?
For starters, take down the wallpaper. Removal of all wallpaper is huge. It's too individualized to the current owner's tastes. Buyers just do not like wallpaper. If you go into a wallpaper store, there are thousands of patterns. Why is that? It's because people are very particular.
Still, some sellers are trying to sell houses with a different kind of wallpaper in every room. That puts them at a disadvantage to a seller who has "neutralized" personal tastes by removing wallpaper and repainting with warmer colors.
Clutter also has to go.
De-cluttering is a real important step that I think a lot of sellers overlook. We live in a house differently than we sell it, and packing away things that you don't use gives the buyer the opportunity to walk through and mentally put their things in the house.
People also get blind to the clutter. Ninety-five percent of sellers need an honest but tough assessment of what needs to get put in storage.
Carpeting is another issue. Buyers frown on houses that have a different color of carpet in every room. If the carpet would cost too much to replace but it has hardwood floors underneath, the best option probably is to pull it up and show the floor.
But if you can afford to replace it before you put the home on the market, it will make a big difference.
It doesn't need to be real expensive carpet, just mid-grade, recommending beige as the color. Beige that flows right through, that will change the house's appearance like you wouldn't believe.
Evidence the house has been well-maintained is important, right down to the front door. With inventories high in a slower market, buyers expect to be able to move right in and not face neglected maintenance issues.
It sounds corny, but make sure your front door looks good and the doorbell works. It's one of those signs that, if you're not willing to have your front look good and doorbell work, what other things don't work?
A likely sale killer, pet odors.
Smelly properties don't sell.
In the end, it usually comes down to a house in the best condition at the best price.
Homes that are priced right vs. their immediate competitors that are in great condition are the ones that get 30 showings in the first week on the market and three offers. It happens.
Properties that are in so-so condition and priced the same or higher than other competing listings are going to sit for a really long time and may never sell.
So take the time to make your home stand out and you will be happy you did. Sell faster in a shorter period of time.
That's why I think "depersonalizing" when you put your house up for sale.
There are key steps -- besides putting a realistic, post-housing bubble asking price on the property -- that can make a house stand out amid an immense inventory of "for sale" signs.
Keep in mind that the buyer has a lot of choices in today's market. It's most likely the shiny apple that's going to get picked. It's the same with houses. It's to a seller's benefit to make their house shine. It absolutely is.
How do you make it shine?
For starters, take down the wallpaper. Removal of all wallpaper is huge. It's too individualized to the current owner's tastes. Buyers just do not like wallpaper. If you go into a wallpaper store, there are thousands of patterns. Why is that? It's because people are very particular.
Still, some sellers are trying to sell houses with a different kind of wallpaper in every room. That puts them at a disadvantage to a seller who has "neutralized" personal tastes by removing wallpaper and repainting with warmer colors.
Clutter also has to go.
De-cluttering is a real important step that I think a lot of sellers overlook. We live in a house differently than we sell it, and packing away things that you don't use gives the buyer the opportunity to walk through and mentally put their things in the house.
People also get blind to the clutter. Ninety-five percent of sellers need an honest but tough assessment of what needs to get put in storage.
Carpeting is another issue. Buyers frown on houses that have a different color of carpet in every room. If the carpet would cost too much to replace but it has hardwood floors underneath, the best option probably is to pull it up and show the floor.
But if you can afford to replace it before you put the home on the market, it will make a big difference.
It doesn't need to be real expensive carpet, just mid-grade, recommending beige as the color. Beige that flows right through, that will change the house's appearance like you wouldn't believe.
Evidence the house has been well-maintained is important, right down to the front door. With inventories high in a slower market, buyers expect to be able to move right in and not face neglected maintenance issues.
It sounds corny, but make sure your front door looks good and the doorbell works. It's one of those signs that, if you're not willing to have your front look good and doorbell work, what other things don't work?
A likely sale killer, pet odors.
Smelly properties don't sell.
In the end, it usually comes down to a house in the best condition at the best price.
Homes that are priced right vs. their immediate competitors that are in great condition are the ones that get 30 showings in the first week on the market and three offers. It happens.
Properties that are in so-so condition and priced the same or higher than other competing listings are going to sit for a really long time and may never sell.
So take the time to make your home stand out and you will be happy you did. Sell faster in a shorter period of time.
Saturday, April 23, 2011
Maryland Real Estate by Pamela DuBois: Sellers putting house on market - Worth-the-Price ...
Maryland Real Estate by Pamela DuBois: Sellers putting house on market - Worth-the-Price ...: "Cleaning and decluttering - Remove any personal items, unclutter countertops, organize closets and shelves, and make the home sparkling cle..."
March Real Estate numbers are up
After stumbling in February, sales of existing homes rose 3.7 percent in March from the month before, according to a National Association of Realtors report released today.
Completed sales of existing single-family homes, town homes, condominiums and co-ops fell 6.3 percent compared to March 2010 -- when a federal home buyer tax credit program elevated sales -- to a seasonally adjusted annual rate of 5.1 million units.
"With rising jobs and excellent affordability conditions, we project moderate improvements into 2012, but not every month will show a gain -- primarily because some buyers are finding it too difficult to obtain a mortgage," said Lawrence Yun, NAR's chief economist, in a statement.
He said the generally upward trend in monthly existing-home sales suggests the housing market is "clearly on a recovery path."
The median price for existing homes nationwide fell 5.9 percent year-over-year in March, to $159,600. Distressed properties, typically sold at a discount, made up 40 percent of sales last month, compared with 35 percent in March 2010.
Completed sales of existing single-family homes, town homes, condominiums and co-ops fell 6.3 percent compared to March 2010 -- when a federal home buyer tax credit program elevated sales -- to a seasonally adjusted annual rate of 5.1 million units.
"With rising jobs and excellent affordability conditions, we project moderate improvements into 2012, but not every month will show a gain -- primarily because some buyers are finding it too difficult to obtain a mortgage," said Lawrence Yun, NAR's chief economist, in a statement.
He said the generally upward trend in monthly existing-home sales suggests the housing market is "clearly on a recovery path."
The median price for existing homes nationwide fell 5.9 percent year-over-year in March, to $159,600. Distressed properties, typically sold at a discount, made up 40 percent of sales last month, compared with 35 percent in March 2010.
Friday, April 22, 2011
Real Estate by Pam: Real Estate by Pam: Sellers putting house on marke...
Real Estate by Pam: Real Estate by Pam: Sellers putting house on marke...: "Real Estate by Pam: Sellers putting house on market - Worth-the-Price ... : 'Cleaning and decluttering - Remove any personal items, unclutt..."
Real Estate by Pam: Sellers putting house on market - Worth-the-Price ...
Real Estate by Pam: Sellers putting house on market - Worth-the-Price ...: "Cleaning and decluttering - Remove any personal items, unclutter countertops, organize closets and shelves, and make the home sparkling cle..."
Sellers putting house on market - Worth-the-Price Fix-Ups
Cleaning and decluttering - Remove any personal items, unclutter countertops, organize closets and shelves, and make the home sparkling clean.
Brightening - Clean all windows inside and out, replace old curtains, update lighting fixtures, and remove anything that blocks light from the windows.
Smart Staging - Rearrange furniture, bring in new accessories and furnishings to enhance rooms, incorporate artwork, and play soft music in the background.
Landscaping enhancements - Punch up the home's curb appeal in the front and back yards by adding bark mulch, bushes, and flowers and ensuring current plants and grass are well-cared for and manicured.
Repairing electrical or plumbing - Fix leaks under then sinks, remove any mildew stains, and ensure all plumbing is in good working condition. Update the home's electrical with new wiring for modern appliances, fix any lights or outlets that don't work, and replace old plug points with new safety fixtures.
Replacing or shampooing dirty carpets - steam clean carpets, replace any worn carpets and repair any floor creaks.
Brightening - Clean all windows inside and out, replace old curtains, update lighting fixtures, and remove anything that blocks light from the windows.
Smart Staging - Rearrange furniture, bring in new accessories and furnishings to enhance rooms, incorporate artwork, and play soft music in the background.
Landscaping enhancements - Punch up the home's curb appeal in the front and back yards by adding bark mulch, bushes, and flowers and ensuring current plants and grass are well-cared for and manicured.
Repairing electrical or plumbing - Fix leaks under then sinks, remove any mildew stains, and ensure all plumbing is in good working condition. Update the home's electrical with new wiring for modern appliances, fix any lights or outlets that don't work, and replace old plug points with new safety fixtures.
Replacing or shampooing dirty carpets - steam clean carpets, replace any worn carpets and repair any floor creaks.
Real Estate by Pam: Help someone avoid foreclosure.
Real Estate by Pam: Help someone avoid foreclosure.: "Many people have the impression that most real estate agents only care about themselves and their commissions. I'm here to help you avoid fo..."
Real Estate by Pam: Financing for your first home
Real Estate by Pam: Financing for your first home: "Are you getting ready to buy your first home? It is important to know how much you can afford before you begin looking at properties. Talkin..."
Real Estate by Pam: Low interest rates - now closing costs help for bu...
Real Estate by Pam: Low interest rates - now closing costs help for bu...: "Fannie Mae is once again offering closing-cost assistance for buyers who close on a home in the mortgage giant's real-estate owned (REO) inv..."
Thursday, April 21, 2011
Real Estate by Pam: Financing for your first home
Real Estate by Pam: Financing for your first home: "Are you getting ready to buy your first home? It is important to know how much you can afford before you begin looking at properties. Talkin..."
Real Estate by Pam: Mortgage interest rates and credit scoring.
Real Estate by Pam: Mortgage interest rates and credit scoring.: "Credit scoring was developed in the 1960s as a means to determine whether or not consumers were likely to repay their loans. The score range..."
Real Estate by Pam: Low interest rates - now closing costs help for bu...
Real Estate by Pam: Low interest rates - now closing costs help for bu...: "Fannie Mae is once again offering closing-cost assistance for buyers who close on a home in the mortgage giant's real-estate owned (REO) inv..."
Buying versus renting - reasons why you should buy a home instead of renting
Forget the finances for a minute. Why did you even begin to consider purchasing a home? The Fannie Mae National Housing Survey shows that four of the biggest reasons people buy a home have nothing at all to do with money. They want a place to raise and educate their children, a place where their family will feel safe, to have plenty of living space, and to have control over the space. What non financial benefits will your family gain from owning a home? Yours answers to that question should be the reason you decide to purchase or not. The bottom line is that the cost of a home will probably remain relatively unchanged even if prices continue to depreciate. Don't allow money to be the only factor in making the decision that's right for you.
Wednesday, April 20, 2011
If it's possible that prices will continue to fall, why should you buy now?
While price is the major concern for anyone selling a home, cost should be your primary concern as a buyer. That means you have to take into account what your monthly payment will be, considering not only the price of the home but also the interest of your mortgage. Waiting for prices to bottom out while rates are increasing can wind up costing more over the life of the mortgage. Fannie Mae, Freddie Mac, the National Association of Realtors, PMI, and the Mortgage Bankers Association are all projecting interest rates will increase over the next several quarters. It's best that you meet with your mortgage professional to help you determine what an interest rate increase will cost you based on the expected size of your loan. That will help you make a decision.
Saturday, April 16, 2011
Low interest rates - now closing costs help for buyers
Fannie Mae is once again offering closing-cost assistance for buyers who close on a home in the mortgage giant's real-estate owned (REO) inventory, but in most states will not bring back cash bonuses it previously paid to buyers' agents.
Buyers who put in initial offers on or after April 11, and close on the sale of a Fannie Mae HomePath property by June 30, will be eligible to receive up to 3.5 percent in closing-cost assistance.
The offer is only good for buyers who intend to occupy the home they are purchasing as their primary residence -- second homes and investor properties are not eligible.
Offers submitted before May 15 have the best chance of qualifying, Fannie Mae said, as offers submitted after that "are particularly questionable for closing" by the June 30 deadline.
Buyers who put in initial offers on or after April 11, and close on the sale of a Fannie Mae HomePath property by June 30, will be eligible to receive up to 3.5 percent in closing-cost assistance.
The offer is only good for buyers who intend to occupy the home they are purchasing as their primary residence -- second homes and investor properties are not eligible.
Offers submitted before May 15 have the best chance of qualifying, Fannie Mae said, as offers submitted after that "are particularly questionable for closing" by the June 30 deadline.
Saturday, April 9, 2011
Mortgage interest rates and credit scoring.
Credit scoring was developed in the 1960s as a means to determine whether or not consumers were likely to repay their loans. The score ranges from 350 to 850 with a higher score being extremely favorable. Essentially, a high credit score translates into lower interest rates for the borrower.
There are five factors that comprise the credit score. Payment history accounts for 35% of the score; outstanding credit balances have a 30% impact; credit history makes up 15%, type of credit factors at 10%; and inquiries influence the score by 10%. This gives the lender a snapshot of an individual's sense of financial responsibility and ability to pay back loans.
There are many quick tricks to improve the credit score, and I can provide borrowers with more information on this subject. If necessary, I guide them to a reliable resource for credit remediation. If a borrower has to pay a higher interest rate to close a loan, the tarnished credit rating will begin to improve once mortgage payments are made on time and in full. If that is the case, my team and I will be on the watch to alert the borrower when an opportunity arises to refinance and get a lower interest rate.
Mortgage Interest Rates for Fixed Rate Mortgages are low. Call me to find out more...
There are five factors that comprise the credit score. Payment history accounts for 35% of the score; outstanding credit balances have a 30% impact; credit history makes up 15%, type of credit factors at 10%; and inquiries influence the score by 10%. This gives the lender a snapshot of an individual's sense of financial responsibility and ability to pay back loans.
There are many quick tricks to improve the credit score, and I can provide borrowers with more information on this subject. If necessary, I guide them to a reliable resource for credit remediation. If a borrower has to pay a higher interest rate to close a loan, the tarnished credit rating will begin to improve once mortgage payments are made on time and in full. If that is the case, my team and I will be on the watch to alert the borrower when an opportunity arises to refinance and get a lower interest rate.
Mortgage Interest Rates for Fixed Rate Mortgages are low. Call me to find out more...
Monday, March 28, 2011
Financing for your first home
Are you getting ready to buy your first home? It is important to know how much you can afford before you begin looking at properties. Talking with a lender and getting pre-approved for a loan puts you in a stronger negotiating position with sellers.
As a rule, your monthly housing costs should not exceed 28% of your monthly pre-tax income. These costs include the mortgage payment, real estate taxes, and insurance. If you have long-term debts, such as student loans or car payments, your monthly payments, including your housing costs, should be less than 36% of your pre-tax monthly income. Some loans, such as VA and FHA loans, are more flexible with these basic guidelines.
Depending on which type of mortgage you select, you can consider houses in various price ranges. An adjustable-rate mortgage will usually enable you to qualify for a higher loan amount. Your real estate agent can help you make the basic calculations. Remember that buying at the top end of your price range gives you more time to outgrow your home, and can save you money over the long term.
C
As a rule, your monthly housing costs should not exceed 28% of your monthly pre-tax income. These costs include the mortgage payment, real estate taxes, and insurance. If you have long-term debts, such as student loans or car payments, your monthly payments, including your housing costs, should be less than 36% of your pre-tax monthly income. Some loans, such as VA and FHA loans, are more flexible with these basic guidelines.
Depending on which type of mortgage you select, you can consider houses in various price ranges. An adjustable-rate mortgage will usually enable you to qualify for a higher loan amount. Your real estate agent can help you make the basic calculations. Remember that buying at the top end of your price range gives you more time to outgrow your home, and can save you money over the long term.
C
Wednesday, March 16, 2011
Help someone avoid foreclosure.
Many people have the impression that most real estate agents only care about themselves and their commissions. I'm here to help you avoid foreclosure if possible. For example, if you are facing a foreclosure sale, you can ask me about the "ask for the note strategy" to delay or stop the foreclosure. I can also refer you to an organization such as NACA.net. NACA.net who does forensic loan audits to determine if the lender violated any RESPA or other requirements. If the lender did so, then you have more leverage to work out a loan modification, a short sale, or some other solution.
Give me a call today. I can help.
Give me a call today. I can help.
Wednesday, January 12, 2011
Tips for buying a home in 2011 - Why Rent when you can buy?
Here are some good tips to buy a home instead of continuing to rent. Make it your New Year's Resolution.
Resolution #1: I will save up for up-front costs associated with buying a home.
While it is true you can buy a home without the full 20% deposit, home buyers should still make the effort to save for a sizeable down payment. A five percent or ten percent down payment is a step in the right direction. In addition, you will need to account for finances for closing costs. While some sellers will make concessions and pay it for home buyers, not all will, so be prepared for the cost. A good rule of thumb when looking at closing costs is two to four percent of the purchase price.
Resolution #2: I will get my credit in line.
The first step to improving your credit score is to know it. There are several free sites you can use to get your credit score, such as www.AnnualCreditReport.com. The next step will be to pay down/off your credit card debt. Paying down/off revolving debt looks better on your credit report. And be sure that your balance is 30% or less of your credit card limit. High balances, even with regular payments, do not help your final score.
Resolution #3: I will find a qualified agent to represent me.
Buying and selling a home is a huge financial transaction, so it is important to work with a qualified real estate professional who will understand your needs, the real estate industry and the current market. You will want to reach out to your network, interview at least three agents and trust your instincts during selection. You can also visit Homes.com ‘Find a Real Estate Agent’ section to locate a professional in your area.
Resolution #4: I will be an educated home buyer.
Being an educated home buyer is really important for the process to run smoothly and ensure that you enjoy your home search experience. You can begin research on the Internet to learn the various vocabulary terms and each step in purchasing a home. Attending various courses for home buyers and homeowners is also beneficial.
Resolution #5: I will take my time and enjoy the process.
As a recent first time home buyer, I can attest that the home buying process can be stressful, overwhelming and sometimes chaotic. That being stated, you will still need to take the time and enjoy the home search process. Whenever you feel overwhelmed, take a step back and relax. This is your buying experience, and you will ultimately be living in the place you decide.
Resolution #1: I will save up for up-front costs associated with buying a home.
While it is true you can buy a home without the full 20% deposit, home buyers should still make the effort to save for a sizeable down payment. A five percent or ten percent down payment is a step in the right direction. In addition, you will need to account for finances for closing costs. While some sellers will make concessions and pay it for home buyers, not all will, so be prepared for the cost. A good rule of thumb when looking at closing costs is two to four percent of the purchase price.
Resolution #2: I will get my credit in line.
The first step to improving your credit score is to know it. There are several free sites you can use to get your credit score, such as www.AnnualCreditReport.com. The next step will be to pay down/off your credit card debt. Paying down/off revolving debt looks better on your credit report. And be sure that your balance is 30% or less of your credit card limit. High balances, even with regular payments, do not help your final score.
Resolution #3: I will find a qualified agent to represent me.
Buying and selling a home is a huge financial transaction, so it is important to work with a qualified real estate professional who will understand your needs, the real estate industry and the current market. You will want to reach out to your network, interview at least three agents and trust your instincts during selection. You can also visit Homes.com ‘Find a Real Estate Agent’ section to locate a professional in your area.
Resolution #4: I will be an educated home buyer.
Being an educated home buyer is really important for the process to run smoothly and ensure that you enjoy your home search experience. You can begin research on the Internet to learn the various vocabulary terms and each step in purchasing a home. Attending various courses for home buyers and homeowners is also beneficial.
Resolution #5: I will take my time and enjoy the process.
As a recent first time home buyer, I can attest that the home buying process can be stressful, overwhelming and sometimes chaotic. That being stated, you will still need to take the time and enjoy the home search process. Whenever you feel overwhelmed, take a step back and relax. This is your buying experience, and you will ultimately be living in the place you decide.
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