Talk about waiting ‘til the last minute! We’ve been hearing promises for months that it would soon be possible for first time buyers to use the $8,000 as their down payment. Unfortunately, they’ve been mostly empty promises, until now! I know of two local lenders who are offering this Golden Ticket to owning your first home, but you must close by Nov 30, which is only a few weeks away! Harder still, is finding a home that can close that quickly because so many are short sales!
If you or someone you know may qualify, contact one of the agencies below immediately to get pre-approved. If you are able to take advantage of this great opportunity, contact me right away so that I can help you close on a house in time!
http://www.suncoastfcu.org/Default.aspx?tabid=440
http://www.hometown-lenders-llc.com/
Even college students could greatly benefit from purchasing a condo close to school. For the money that would otherwise be paid and gone to either a dorm or an apartment, that money could instead become an investment for that student’s future. Why throw the money away, never to be seen again, when you could purchase a property, claim a tax credit for the purchase, then benefit from double the equity with 4-5 years? Most students usually have roommates, so that money could go toward the expense of holding the property as well. Investment in real estate is the best way to combat the economic fall-out.
Retirees are another group who can use the real estate market to help offset losses from other investments. Prices are so low that the money saved from buying now can go a long way in helping to even out losses.
This is a great time to buy!
Friday, October 23, 2009
Fall 2009 Tampa Real Estate Update
Thankfully, the market is continuing to improve! Prices are still low, but they’ve stopped falling and more and more houses are going to contract every day! There are many great loan options and interest rates remain low! People who want to use an FHA loan only need 3.5% down and a new great option for that was just passed! See “Use the $8K Tax Credit Toward Your Down Payment” below.
Another great opportunity is the USDA loan which allows for over 100% financing in certain areas most affected by this crisis where it’s believed that the equity growth will be steep upon recovery. One of the places where these loans are available is in Pasco County where buyers get the advantage of newer homes, lower prices and lower taxes as well.
Florida existing home sales:
(month-to-previous-year comparison) UP 28%
Florida existing condo sales:
(month-to-previous-year comparison) UP 45%
Use the $8K Tax Credit Toward Your Down Payment or finance 102%!!
Talk about waiting ‘til the last minute! We’ve been hearing promises for months that it would soon be possible for first time buyers to use the $8,000 as their down payment. Unfortunately, they’ve been mostly empty promises, until now! I know of two local lenders who are offering this Golden Ticket to owning your first home, but you must close by Nov 30, which is only a few weeks away! Harder still, is finding a home that can close that quickly because so many are short sales!
If you or someone you know may qualify, contact one of the agencies below immediately to get pre-approved. If you are able to take advantage of this great opportunity, contact me right away so that I can help you close on a house in time!
http://www.suncoastfcu.org/Default.aspx?tabid=440
http://www.hometown-lenders-llc.com/
Even college students could greatly benefit from purchasing a condo close to school. For the money that would otherwise be paid and gone to either a dorm or an apartment, that money could instead become an investment for that student’s future. Why throw the money away, never to be seen again, when you could purchase a property, claim a tax credit for the purchase, then benefit from double the equity with 4-5 years? Most students usually have roommates, so that money could go toward the expense of holding the property as well. Investment in real estate is the best way to combat the economic fall-out.
Retirees are another group who can use the real estate market to help offset losses from other investments. Prices are so low that the money saved from buying now can go a long way in helping to even out losses.
This is a great time to buy!
Another great opportunity is the USDA loan which allows for over 100% financing in certain areas most affected by this crisis where it’s believed that the equity growth will be steep upon recovery. One of the places where these loans are available is in Pasco County where buyers get the advantage of newer homes, lower prices and lower taxes as well.
Florida existing home sales:
(month-to-previous-year comparison) UP 28%
Florida existing condo sales:
(month-to-previous-year comparison) UP 45%
Use the $8K Tax Credit Toward Your Down Payment or finance 102%!!
Talk about waiting ‘til the last minute! We’ve been hearing promises for months that it would soon be possible for first time buyers to use the $8,000 as their down payment. Unfortunately, they’ve been mostly empty promises, until now! I know of two local lenders who are offering this Golden Ticket to owning your first home, but you must close by Nov 30, which is only a few weeks away! Harder still, is finding a home that can close that quickly because so many are short sales!
If you or someone you know may qualify, contact one of the agencies below immediately to get pre-approved. If you are able to take advantage of this great opportunity, contact me right away so that I can help you close on a house in time!
http://www.suncoastfcu.org/Default.aspx?tabid=440
http://www.hometown-lenders-llc.com/
Even college students could greatly benefit from purchasing a condo close to school. For the money that would otherwise be paid and gone to either a dorm or an apartment, that money could instead become an investment for that student’s future. Why throw the money away, never to be seen again, when you could purchase a property, claim a tax credit for the purchase, then benefit from double the equity with 4-5 years? Most students usually have roommates, so that money could go toward the expense of holding the property as well. Investment in real estate is the best way to combat the economic fall-out.
Retirees are another group who can use the real estate market to help offset losses from other investments. Prices are so low that the money saved from buying now can go a long way in helping to even out losses.
This is a great time to buy!
Will the $8,000 Tax Credit be Renewed?
That is the question many people are asking these days. The $8000 tax credit incentive passed last February is head and shoulders above its $7500 predecessor last year which was really only an interest-only loan that had to be paid back. This new tax credit is FREE MONEY- you keep it provided you qualify and live in the property. This great incentive combined with historically low prices has turned our local real estate market around! Our prices finally stopped declining and sales have gone up. It’s made such a big difference that many people have become increasingly concerned that upon its expiration on November 30 (just 5 weeks away), we’ll be facing a slow-down in sales.
In order to ward this off, many have been petitioning the government to extend the tax credit. One thing to consider with the early requests was that having a deadline gave people urgency and that urgency has lead to more sales and a stop in price declines. Many of us have been hoping that we’d see the credit renewed upon expiration. There’s been much speculation about fostering that sense of urgency by waiting until the last minute to extend the credit. Unfortunately, it’s become more complicated than that.
The chief concern right now seems to be the government’s challenge of estimating how much this will cost. Since most of these credits will not be claimed until tax time next year, it’s going to be difficult to determine exactly how many people will file. HUD Secretary Donovan cautions that a decision should not be rendered without a thorough examination of cost. This is understandable and it may lead to the decision being tabled for a while.
The other big concern is fraud. There have been 167 cases of confirmed criminal fraud so far and the IRS has begun examining over 107,000 cases that they consider questionable. If they do decide to extend the credit, they’ll have to decide how to best organize the process to prevent fraudulent activity.
So for now, the answer is a big fat…"we’ll see…"
In order to ward this off, many have been petitioning the government to extend the tax credit. One thing to consider with the early requests was that having a deadline gave people urgency and that urgency has lead to more sales and a stop in price declines. Many of us have been hoping that we’d see the credit renewed upon expiration. There’s been much speculation about fostering that sense of urgency by waiting until the last minute to extend the credit. Unfortunately, it’s become more complicated than that.
The chief concern right now seems to be the government’s challenge of estimating how much this will cost. Since most of these credits will not be claimed until tax time next year, it’s going to be difficult to determine exactly how many people will file. HUD Secretary Donovan cautions that a decision should not be rendered without a thorough examination of cost. This is understandable and it may lead to the decision being tabled for a while.
The other big concern is fraud. There have been 167 cases of confirmed criminal fraud so far and the IRS has begun examining over 107,000 cases that they consider questionable. If they do decide to extend the credit, they’ll have to decide how to best organize the process to prevent fraudulent activity.
So for now, the answer is a big fat…"we’ll see…"
Help! Foreclosures are Blighting Our Neighborhoods!
Many homeowners who are fortunate enough to stay in their homes are rightfully concerned with their neighborhood because of all the distressed properties around them! Unfortunately, it’s going to be a while before we’re able to ride out the storm of abandoned homes.
Foreclosures are a lengthy process. In average markets, they take about 5 months, but now that we’ve got over 5 times more foreclosures than average, they can easily take a year or longer. In fact, Florida leads the nation in foreclosures, and the Greater Tampa area has more than its share. Unfortunately, this is going to be part of our reality for a while.
Another kink is that since there is such a high volume of foreclosures, the banks are sticking to their prices. Very few homes are being sold at courthouse these days for several reasons; chief among them: 1) foreclosure sale prices are too close to average sale prices, 2) many homes have other liens that prospective buyers would have to clear. So what happens to many of these properties these days is that banks then hand them off to property management companies for rentals. This is also a lengthy process involving financial analysis, bid for repairs, completion of repairs and the rental process. To give you an idea of how long this often takes, my husband works on these properties as a contractor. We’re seeing properties sit unoccupied for sometimes as long as a year and a half! Things are turning around, but it’s a slow process and made much slower by foreclosures.
This is an excellent argument for short sales. Though short sales can take a long time, they are often occupied for a good part of that time. These days, if priced well and handled diligently, the whole process should take 6-9 months from the time of listing, which is a far cry from 18 months. I’ve worked very successfully on short sales for 2 ½ years now and though they are taxing, the benefits are evident. Making the decision to short sale is not an easy one if you can manage your payments. That needs to be deliberated very carefully. For some people, it’s better to take the loss now in order to have the opportunity to turn yourself around financially. For others, hanging in is not comfortable, but it’s manageable and they love their home. However, if you or someone you know cannot make payments, then a short sale is the best alternative. It is better for your credit than a foreclosure and it’s also much better for your neighbors and your community.
Suggestions for homes in your neighborhood that are already abandoned would be: park your car in the driveway so that it doesn’t appear abandoned and speak to your home owners association about having the front lawn cut. These two small steps can help discourage vandalism and keep up the exterior appearance until a management company steps in for the lender. One last thing that I remind myself in the midst of the negative, is to be thankful for the home I’m in. Those of us who still own may be discouraged that we have lowered property values, but we should never forget that we are blessed.
Foreclosures are a lengthy process. In average markets, they take about 5 months, but now that we’ve got over 5 times more foreclosures than average, they can easily take a year or longer. In fact, Florida leads the nation in foreclosures, and the Greater Tampa area has more than its share. Unfortunately, this is going to be part of our reality for a while.
Another kink is that since there is such a high volume of foreclosures, the banks are sticking to their prices. Very few homes are being sold at courthouse these days for several reasons; chief among them: 1) foreclosure sale prices are too close to average sale prices, 2) many homes have other liens that prospective buyers would have to clear. So what happens to many of these properties these days is that banks then hand them off to property management companies for rentals. This is also a lengthy process involving financial analysis, bid for repairs, completion of repairs and the rental process. To give you an idea of how long this often takes, my husband works on these properties as a contractor. We’re seeing properties sit unoccupied for sometimes as long as a year and a half! Things are turning around, but it’s a slow process and made much slower by foreclosures.
This is an excellent argument for short sales. Though short sales can take a long time, they are often occupied for a good part of that time. These days, if priced well and handled diligently, the whole process should take 6-9 months from the time of listing, which is a far cry from 18 months. I’ve worked very successfully on short sales for 2 ½ years now and though they are taxing, the benefits are evident. Making the decision to short sale is not an easy one if you can manage your payments. That needs to be deliberated very carefully. For some people, it’s better to take the loss now in order to have the opportunity to turn yourself around financially. For others, hanging in is not comfortable, but it’s manageable and they love their home. However, if you or someone you know cannot make payments, then a short sale is the best alternative. It is better for your credit than a foreclosure and it’s also much better for your neighbors and your community.
Suggestions for homes in your neighborhood that are already abandoned would be: park your car in the driveway so that it doesn’t appear abandoned and speak to your home owners association about having the front lawn cut. These two small steps can help discourage vandalism and keep up the exterior appearance until a management company steps in for the lender. One last thing that I remind myself in the midst of the negative, is to be thankful for the home I’m in. Those of us who still own may be discouraged that we have lowered property values, but we should never forget that we are blessed.
Friday, July 31, 2009
Tampa Real Estate is Picking Up!
I wrote about the market turn we began to experience in April. Since then, existing home sales rose 13.8% from May to June and 28% from June to July. I also mentioned that our prices had finally remained steady for a few months, but from May to June, the median home price actually ROSE 2.49%! No one foresees any big price increases, but certainly fewer houses and likely no more price declines. Statistics aside, those of us in real estate are seeing huge changes on a day-to-day basis. Our phones are ringing, our web sites are getting more hits and we’re selling! Houses that are priced well are going to contract within a matter of a couple of weeks, when last year, you could expect a house to be on the market for 6 months or more! The $8,000 tax credit that expires Nov 30 is also generating more sales. Our market will recover. It will take time, but it will recover. This not to say that you should sell your house unless you absolutely have to, but it is a tremendous improvement. Values will return and people who buy now will have made a fantastic investment. I'm delighted to be selling during this time when people are able to get such great deals on homes. =)
Visit my site for fantastic home deals in the Greater Tampa Area:
Visit my site for fantastic home deals in the Greater Tampa Area:
The Skinny on Types of Home Sales
This unique market has made the playing field pathetically even for any kind of sale. In a healthy market, most homes are selling at value. The few that fall to foreclosure will sell for significantly less. These days, almost all the sales ARE distress sales, so that's where the bar has settled for now. People tend to love "buzz words" like "foreclosure," but these days, buying a foreclosure will have little, if any impact on the price paid for the home. Here's the skinny on types of sales during this market in the Greater Tampa Area:
1) SHORT SALES: These are the most common sales these days. I'll find it hard to limit myself to a few lines on this because there's so much to tell, but I'll try my best.
What is it? A house with a mortgage higher than what can be garnered from a sale. The lender does not base their decision on the loan balance. Their decision is based on the current value of the home.
Why does our area have so many? The simplest answer: We had a tremendous real estate boom that inflated prices and spurred a lot of sales. At the same time, there were mortgages awarded for as much as 125% of those inflated values. Many of those mortgages were misunderstood and many were even predatory. Now people are upside down and can't afford the homes.
What is the positive side of buying a short sale? First of all, to avoid all short sales, you'd be very limited in the number of homes to choose from, since they make up the majority of the market. It's more a matter of not being able to avoid them than purposely choosing one. Secondly, short sales are generally better cared for than foreclosures that oftentimes get trashed and gutted. Lastly, of course, is the fact that you save a lot of money because of the short sales, whether you buy one or not. There are many people who go through the short sale process, and after the agonizing wait and uncertainty, are rewarded with the house of their dreams for a fraction of what the value would be in a normal market. It's an opportunity, not a fun one, but it can be worth it.
What is the process of a short sale? This will be the hardest for me to explain in few words, so I'll start by stating that there are many, many details in the short sale process. A Realtor who is well-trained and experienced in short sales is invaluable throughout the short sale process. The following is a very limited description:
a) An offer is made on the house and the sellers (who won't be getting any money) sign it, making it a contract. Sometimes you can wait to give an earnest money deposit until after the bank's approval. Other times, you'll be asked to give a deposit so that you won't have to compete with other offers.
b) The contract is submitted to the bank along with a huge packet of financials from the seller, a closing statement showing the details of the offer, and the offer itself. If this 40-60 page packet is NOT in order before the offer, it can delay the process for weeks.
c) The banks are totally overloaded with short sales and it can take 2 weeks- 2 months just for a set-up person to put their hands on the file to be sure that it is complete for the negotiator. Once that's done, a realtor who is not involved in the transaction will be sent to the property for a Broker's Price Opinion (BPO).
d) Once the BPO gets back to the negotiator, she'll look everything over to see that the offer meets their general guidelines. If it doesn't, she'll negotiate terms so that they fit or the buyer can back out and get deposits if any. If the terms do meet the guidelines, she'll pass it on for approval.
e) Oftentimes, there are 2 loans in these instances. The first lender has the biggest stock in the property and has specific ratios to meet. The secondary lender often takes a small amount between $3,000-$5,000. This is added on to what the first bank will accept.
A note on price: value is value. People have many misconceptions about what a bank will accept. As I mentioned, distressed sales are now the rule, not the exception. Banks will only allow so much loss. My husband is in construction and we've seen a flood of homes getting rehabbed by banks in order to rent and then sell 3-5 years from now. A good Realtor should be able to tell you the approximate value of the home and have an idea what the bank will accept. Offers below the mark simply won't be awarded the home. Period. The banks have strict guidelines and they will rent instead of sell if those guidelines aren't met.
2) Regular Sales: Oh, blessed regular sales!! It makes me lightheaded to think of them. People who've taken care of their homes, have equity, and can sell in a dignified, up-front manner! They are few and far between. If you find one you love, you should jump on it! They have to compete with all the distress sales, so you'll still save gobs of money. Most sell for exactly what their short sale counterparts sell for; however, If they're asking for a bit more- maybe 3% or less, you'd do very well to pay the bit extra with a smile. You send an offer, you'll usually get an answer within a week, and poof!! You're a homeowner. Let's contrast that with a bad short sale scenario: You find a house you love and give an offer. You wait 4 months for an answer, while picking out drapes, planning your life, etc, only to be dumped at the last minute because the bank won't accept your offer. Then, you have to start from the beginning again. Avoiding that when possible is awesome and rare!
3) Bank-owned properties: These are homes that have already been foreclosed on. You can usually expect an answer within a week or two. Since the house is already foreclosed, there will not be a second loan to satisfy with an extra $3,000 either. The time part and the deal part of these are great. There are much fewer bank-owned properties than short sales.
The down side: Because they're so much easier to buy, there are often several offers getting to the bank at once. You have to give "your highest and best offer" the first time or risk being outbid by someone else. Many bank-owned homes also have been damaged or stripped, so it's harder to find one in good condition. If you find one, send in your best offer!
4) Foreclosures: Everybody LOVES this word! In normal markets, people with CASH have been able to buy foreclosed properties on the courthouse steps. First of all, notice that I said CASH. Most people don't have access to that kind of cash. Secondly, once it's bought, it's bought. You won't have the opportunity to inspect it later. In the 3 options above, you give an offer, then upon acceptance, you schedule a home inspection that costs between $350-$500. If the home doesn't meet your standards, then you can get out of the deal. On a foreclosure, you'd have to do your inspections BEFORE knowing if you'll win the bid. On top of it, there are very few homes with equity to make these sales possible.
Lately, there's a new kind of auction market going on which is more a gimmick than anything else. These homes can be bought using loans because they're not the same as buying at the courthouse. They are more to give a sense of urgency to the buyer than to get a better deal than you would from a normal or short sale. In fact, they have the audacity to auction short sale properties!!! That means that you'd have to:
1) Make a decision in haste
2) Pay for an inspection ($350-$500) on a home that you may not win the bid on OR forgo the inspection altogether.
3) Give a 5% NON-REFUNDABLE deposit within 24 hours of winning the bid.
3) Wait for 3-6 months for an answer from the banks who have liens on the property, just to learn that your winning auction bid will not satisfy the bank!
4) If you are awarded the property, the price is going to be about the same that you would pay on any of these other sales AND you'll have to pay an auction fee on top of it!
It's honestly ridiculous.
In short, bank-owned and regular sales are the best, followed by short sales which are nearly impossible to avoid. Many buyers gripe, but I find it kind of silly. If it weren’t for these challenges, they’d be paying up to twice as much for these same houses. We don’t have to enjoy the process, but if it makes it possible to get such great deals, it’s well worth it! They could have bought during the boom, and now they’d be looking for a rental.
1) SHORT SALES: These are the most common sales these days. I'll find it hard to limit myself to a few lines on this because there's so much to tell, but I'll try my best.
What is it? A house with a mortgage higher than what can be garnered from a sale. The lender does not base their decision on the loan balance. Their decision is based on the current value of the home.
Why does our area have so many? The simplest answer: We had a tremendous real estate boom that inflated prices and spurred a lot of sales. At the same time, there were mortgages awarded for as much as 125% of those inflated values. Many of those mortgages were misunderstood and many were even predatory. Now people are upside down and can't afford the homes.
What is the positive side of buying a short sale? First of all, to avoid all short sales, you'd be very limited in the number of homes to choose from, since they make up the majority of the market. It's more a matter of not being able to avoid them than purposely choosing one. Secondly, short sales are generally better cared for than foreclosures that oftentimes get trashed and gutted. Lastly, of course, is the fact that you save a lot of money because of the short sales, whether you buy one or not. There are many people who go through the short sale process, and after the agonizing wait and uncertainty, are rewarded with the house of their dreams for a fraction of what the value would be in a normal market. It's an opportunity, not a fun one, but it can be worth it.
What is the process of a short sale? This will be the hardest for me to explain in few words, so I'll start by stating that there are many, many details in the short sale process. A Realtor who is well-trained and experienced in short sales is invaluable throughout the short sale process. The following is a very limited description:
a) An offer is made on the house and the sellers (who won't be getting any money) sign it, making it a contract. Sometimes you can wait to give an earnest money deposit until after the bank's approval. Other times, you'll be asked to give a deposit so that you won't have to compete with other offers.
b) The contract is submitted to the bank along with a huge packet of financials from the seller, a closing statement showing the details of the offer, and the offer itself. If this 40-60 page packet is NOT in order before the offer, it can delay the process for weeks.
c) The banks are totally overloaded with short sales and it can take 2 weeks- 2 months just for a set-up person to put their hands on the file to be sure that it is complete for the negotiator. Once that's done, a realtor who is not involved in the transaction will be sent to the property for a Broker's Price Opinion (BPO).
d) Once the BPO gets back to the negotiator, she'll look everything over to see that the offer meets their general guidelines. If it doesn't, she'll negotiate terms so that they fit or the buyer can back out and get deposits if any. If the terms do meet the guidelines, she'll pass it on for approval.
e) Oftentimes, there are 2 loans in these instances. The first lender has the biggest stock in the property and has specific ratios to meet. The secondary lender often takes a small amount between $3,000-$5,000. This is added on to what the first bank will accept.
A note on price: value is value. People have many misconceptions about what a bank will accept. As I mentioned, distressed sales are now the rule, not the exception. Banks will only allow so much loss. My husband is in construction and we've seen a flood of homes getting rehabbed by banks in order to rent and then sell 3-5 years from now. A good Realtor should be able to tell you the approximate value of the home and have an idea what the bank will accept. Offers below the mark simply won't be awarded the home. Period. The banks have strict guidelines and they will rent instead of sell if those guidelines aren't met.
2) Regular Sales: Oh, blessed regular sales!! It makes me lightheaded to think of them. People who've taken care of their homes, have equity, and can sell in a dignified, up-front manner! They are few and far between. If you find one you love, you should jump on it! They have to compete with all the distress sales, so you'll still save gobs of money. Most sell for exactly what their short sale counterparts sell for; however, If they're asking for a bit more- maybe 3% or less, you'd do very well to pay the bit extra with a smile. You send an offer, you'll usually get an answer within a week, and poof!! You're a homeowner. Let's contrast that with a bad short sale scenario: You find a house you love and give an offer. You wait 4 months for an answer, while picking out drapes, planning your life, etc, only to be dumped at the last minute because the bank won't accept your offer. Then, you have to start from the beginning again. Avoiding that when possible is awesome and rare!
3) Bank-owned properties: These are homes that have already been foreclosed on. You can usually expect an answer within a week or two. Since the house is already foreclosed, there will not be a second loan to satisfy with an extra $3,000 either. The time part and the deal part of these are great. There are much fewer bank-owned properties than short sales.
The down side: Because they're so much easier to buy, there are often several offers getting to the bank at once. You have to give "your highest and best offer" the first time or risk being outbid by someone else. Many bank-owned homes also have been damaged or stripped, so it's harder to find one in good condition. If you find one, send in your best offer!
4) Foreclosures: Everybody LOVES this word! In normal markets, people with CASH have been able to buy foreclosed properties on the courthouse steps. First of all, notice that I said CASH. Most people don't have access to that kind of cash. Secondly, once it's bought, it's bought. You won't have the opportunity to inspect it later. In the 3 options above, you give an offer, then upon acceptance, you schedule a home inspection that costs between $350-$500. If the home doesn't meet your standards, then you can get out of the deal. On a foreclosure, you'd have to do your inspections BEFORE knowing if you'll win the bid. On top of it, there are very few homes with equity to make these sales possible.
Lately, there's a new kind of auction market going on which is more a gimmick than anything else. These homes can be bought using loans because they're not the same as buying at the courthouse. They are more to give a sense of urgency to the buyer than to get a better deal than you would from a normal or short sale. In fact, they have the audacity to auction short sale properties!!! That means that you'd have to:
1) Make a decision in haste
2) Pay for an inspection ($350-$500) on a home that you may not win the bid on OR forgo the inspection altogether.
3) Give a 5% NON-REFUNDABLE deposit within 24 hours of winning the bid.
3) Wait for 3-6 months for an answer from the banks who have liens on the property, just to learn that your winning auction bid will not satisfy the bank!
4) If you are awarded the property, the price is going to be about the same that you would pay on any of these other sales AND you'll have to pay an auction fee on top of it!
It's honestly ridiculous.
In short, bank-owned and regular sales are the best, followed by short sales which are nearly impossible to avoid. Many buyers gripe, but I find it kind of silly. If it weren’t for these challenges, they’d be paying up to twice as much for these same houses. We don’t have to enjoy the process, but if it makes it possible to get such great deals, it’s well worth it! They could have bought during the boom, and now they’d be looking for a rental.
Help for Upside-down Home-owners
It’s not easy, but even people who’ve been turned down for loan modification or refinancing several months ago, might now be eligible for loan modifications. Please beware! There are so many scams out there that you should always remember that anything that sounds too good probably is. You should also never give anyone money up front! There are several new pieces of legislation that are making it possible to refinance as much as 125% of a home’s value. If you’d like to learn more, get FREE help from federally certified counselors at 888-995-4673 or visit www.995hope. Two other reputable resources are:
http://www.makinghomeaffordable.com/index.html
http://www.hud.gov/foreclosure/index.cfm
Short Sale is an Alternative!
If you do not want to refinance or can’t refinance, but you can’t keep up with payments, a short sale is a far better alternative than a bankruptcy. A bankruptcy is not easily overlooked on your credit history. You DO NOT want one. A short sale, on the other hand, will show that you skipped payments, but will eventually show your mortgage as a SATISFIED LIEN. It will be far easier to recover your credit worthiness if you short sale. I’ve had customers and friends frantically put every other part of their finances in jeopardy in attempts to make payments as long as possible. I’ve seen people cash in IRA’s (and face insane tax penalties), liquidate other assets, max out credit cards and more, only to eventually run out of ways to hold on to a house that is completely upside down. In the end, they lose the house and find themselves in much greater financial peril. While a short sale should not be done lightly, don’t think that anyone will give you an award for trying so hard first. On the contrary, you can kill your credit and your assets and wind up far worse for your efforts. If you look at your resources realistically and weigh them against the cost of keeping your present home and come up short, you should act sooner rather than later. During the time that you are not paying your mortgage, you can save that money to help with the expense of moving and possibly even help settle other debts as well. If your short sale is handled well, there will not be too many months of payments that are missed before your debt is settled. It’s not what anyone hopes for, but it’s a decent fresh start. If you think this might be the best option for you or someone you know, please contact me with the utmost confidence that you will be in honest, diligent, and competent care.
http://www.makinghomeaffordable.com/index.html
http://www.hud.gov/foreclosure/index.cfm
Short Sale is an Alternative!
If you do not want to refinance or can’t refinance, but you can’t keep up with payments, a short sale is a far better alternative than a bankruptcy. A bankruptcy is not easily overlooked on your credit history. You DO NOT want one. A short sale, on the other hand, will show that you skipped payments, but will eventually show your mortgage as a SATISFIED LIEN. It will be far easier to recover your credit worthiness if you short sale. I’ve had customers and friends frantically put every other part of their finances in jeopardy in attempts to make payments as long as possible. I’ve seen people cash in IRA’s (and face insane tax penalties), liquidate other assets, max out credit cards and more, only to eventually run out of ways to hold on to a house that is completely upside down. In the end, they lose the house and find themselves in much greater financial peril. While a short sale should not be done lightly, don’t think that anyone will give you an award for trying so hard first. On the contrary, you can kill your credit and your assets and wind up far worse for your efforts. If you look at your resources realistically and weigh them against the cost of keeping your present home and come up short, you should act sooner rather than later. During the time that you are not paying your mortgage, you can save that money to help with the expense of moving and possibly even help settle other debts as well. If your short sale is handled well, there will not be too many months of payments that are missed before your debt is settled. It’s not what anyone hopes for, but it’s a decent fresh start. If you think this might be the best option for you or someone you know, please contact me with the utmost confidence that you will be in honest, diligent, and competent care.
Saturday, June 6, 2009
How To Buy if You Already Own
A challenge that many current homeowners face is that they do not want to sell in this market because of how bad a market it is for sellers. Many people need the profit from their current home to be able to afford to buy another one. This is not so much a challenge, as it is an opportunity, if you have equity in your home and you know what to do.
Get a low interest rate home equity line of credit for the home that you are in. There are many opportunities for getting great home equity loans right now with no closing costs and outrageously low interest rates. I recently got a home equity line of credit from Regions bank. It is a variable rate- no, variable rate is NOT a bad word- it can be a fantastic opportunity as long as you choose the right kind of loan at the right time. I purchased my current home with a variable rate loan from Suncoast bank while the interest rates were already low and I’m currently paying only 4% on my home loan. Then, last year during these very low rates, I got a home equity line through Regions bank and that loan is interest only payment for 20 years (I pay more than just interest by choice, but it’s good to have the option when it’s a tight month) and my interest rate is now down to 3.75% !!! A $75,000 loan only carries a payment of less than $200/month!! You can actually purchase a home for less than $75,000! You can use the money from the HELOC in these ways:
1) Take the full amount of the loan and buy a smaller home. You can get a 3BR house starting in the 30’s, though the ones for at least $50K are more realistic investments. You could rent it out for 4 years with a cost of only $200/month toward your loan and maybe $250/month to taxes and insurance. Depending on what you buy, there’s an excellent chance that you can DOUBLE your investment within 2-4 years just in the equity of the sale!
2) Take money from an equity loan and use it toward the down payment on your dream home. Maybe you’re ready for a larger house or you always wanted some property where you could keep a horse or you want to retire on the beach? Keep the house that you’re in as an investment and rent it. Though you may not make much or any profit from the rental, you’ll make plenty of money when you sell in a 2-4 years and you can still claim the interest on both loans against your taxes.
3) Spend it on a vacation home. This is my favorite option. Beach properties are opportunities for short-term rentals- people visiting for a week or a month. This gives them higher income opportunity, allows you to use them yourself at least a couple of times a year, and qualifies for a second home tax credit. These buys will certainly balloon when values go up, making a tidy profit!
If you’re curious about such options, let me know and I’ll be happy to give you some guidance and point you to decent resources. If you do decide to get an equity loan so that you can purchase something else, let me know. I don’t do loans, but I can get you some good comps for the appraiser so that he values your current home as high as possible.
Another option, depending on how much equity you have in your home, would be to sell now at the lower price because of how much you’ll save on your new purchase. I consider this a less desirable option because of the missed opportunity for investment, but it’s still an option. As a non-short sale/ no foreclosure home, you’ll still have to compete with the prices of distressed sales, but your home will be more appealing to buyers and realtors because they won’t have to deal with the short sale process. If your home is currently worth about $225K, but you could get $300K in a couple of years, that’s down $75K, but you could possibly get a home at ½ its value (now only $250k, but later would cost $500K), so that would be a savings of $250K and a huge savings at the current interest rates. Even after you subtract the $75-$100k that you might be losing to sell now, you’d still be more than $175K ahead, not including the interest rate. Current rates are hovering at an unbelievable 4.78%!! To put that into perspective: If you owe $200K on your home loan, and you were paying a comfortable 6.5% (historically, this is a LOW rate), your principal & interest payments would be $1264.16/month, when compared with the current 4.78% which yields principal & interest payments of $1046.91/month. That’s a savings of $217.25 each month and $78,210. over the life of the loan!! If you were to keep this house until it’s paid off, that would bring your total savings (minus the $75K lost to selling in a down market) as high as $253,000. That’s more than the $250,000 you’d be paying for it in the first place. The drastic changes in the real estate market have illustrated very clearly that timing is everything. The economy is bad, so many people don’t have the option of buying. If you do have the option of buying, it’s foolish to wait.
Get a low interest rate home equity line of credit for the home that you are in. There are many opportunities for getting great home equity loans right now with no closing costs and outrageously low interest rates. I recently got a home equity line of credit from Regions bank. It is a variable rate- no, variable rate is NOT a bad word- it can be a fantastic opportunity as long as you choose the right kind of loan at the right time. I purchased my current home with a variable rate loan from Suncoast bank while the interest rates were already low and I’m currently paying only 4% on my home loan. Then, last year during these very low rates, I got a home equity line through Regions bank and that loan is interest only payment for 20 years (I pay more than just interest by choice, but it’s good to have the option when it’s a tight month) and my interest rate is now down to 3.75% !!! A $75,000 loan only carries a payment of less than $200/month!! You can actually purchase a home for less than $75,000! You can use the money from the HELOC in these ways:
1) Take the full amount of the loan and buy a smaller home. You can get a 3BR house starting in the 30’s, though the ones for at least $50K are more realistic investments. You could rent it out for 4 years with a cost of only $200/month toward your loan and maybe $250/month to taxes and insurance. Depending on what you buy, there’s an excellent chance that you can DOUBLE your investment within 2-4 years just in the equity of the sale!
2) Take money from an equity loan and use it toward the down payment on your dream home. Maybe you’re ready for a larger house or you always wanted some property where you could keep a horse or you want to retire on the beach? Keep the house that you’re in as an investment and rent it. Though you may not make much or any profit from the rental, you’ll make plenty of money when you sell in a 2-4 years and you can still claim the interest on both loans against your taxes.
3) Spend it on a vacation home. This is my favorite option. Beach properties are opportunities for short-term rentals- people visiting for a week or a month. This gives them higher income opportunity, allows you to use them yourself at least a couple of times a year, and qualifies for a second home tax credit. These buys will certainly balloon when values go up, making a tidy profit!
If you’re curious about such options, let me know and I’ll be happy to give you some guidance and point you to decent resources. If you do decide to get an equity loan so that you can purchase something else, let me know. I don’t do loans, but I can get you some good comps for the appraiser so that he values your current home as high as possible.
Another option, depending on how much equity you have in your home, would be to sell now at the lower price because of how much you’ll save on your new purchase. I consider this a less desirable option because of the missed opportunity for investment, but it’s still an option. As a non-short sale/ no foreclosure home, you’ll still have to compete with the prices of distressed sales, but your home will be more appealing to buyers and realtors because they won’t have to deal with the short sale process. If your home is currently worth about $225K, but you could get $300K in a couple of years, that’s down $75K, but you could possibly get a home at ½ its value (now only $250k, but later would cost $500K), so that would be a savings of $250K and a huge savings at the current interest rates. Even after you subtract the $75-$100k that you might be losing to sell now, you’d still be more than $175K ahead, not including the interest rate. Current rates are hovering at an unbelievable 4.78%!! To put that into perspective: If you owe $200K on your home loan, and you were paying a comfortable 6.5% (historically, this is a LOW rate), your principal & interest payments would be $1264.16/month, when compared with the current 4.78% which yields principal & interest payments of $1046.91/month. That’s a savings of $217.25 each month and $78,210. over the life of the loan!! If you were to keep this house until it’s paid off, that would bring your total savings (minus the $75K lost to selling in a down market) as high as $253,000. That’s more than the $250,000 you’d be paying for it in the first place. The drastic changes in the real estate market have illustrated very clearly that timing is everything. The economy is bad, so many people don’t have the option of buying. If you do have the option of buying, it’s foolish to wait.
South Pasco is a Goldmine!!
South Pasco, where the most growth happened during the boom, is any area of much higher inventory than most places in the country. It’s got great roads, new schools, high-end new commercial development, and a GLUT of homes for sale. What’s better is that many of those homes are new!! And Pasco taxes are the lowest taxes anywhere near Tampa. Their taxes there are so low that the communities that charge CDD’s still only have a tax bill no higher than those in Hillsborough County. You can purchase a home there for 50% of what its value should be. In fact, the projection for this area is so good, that you can still get a 100% loan there. Why? Because of how steeply those values will increase over the next couple of years. I don’t foresee a big jump in average home values any time soon, but there are fewer homes on the market to choose from, and the homes in places like South Pasco will have more pronounced price increases. Most parts of South Pasco are within a 25 minute drive from Tampa International Airport, and beautiful, secluded-feeling communities are within 3 miles of restaurants, grocery stores, shops, malls, etc.
Why Prices are Leveling Out
The banks are no longer free-falling. They are banking. Because of that, they are not giving away properties. The prices have been brought down to a very affordable level, so any homes that cannot sell at the right price, are now being held & rented because the banks know that the Tampa market is going to yield very healthy equity profits. Most of you know that the other business I manage is our remodeling business, Jersey Joe’s Home Improvement & Repair, Inc. Working on both sides gives me a unique perspective, and I can tell you that we’ve seen a drastic increase in foreclosures being fixed up and rented out by the banks. Prices have held steady for 4 months now. If you’re waiting for prices to drop further, you’ll miss the boat! Do not miss this opportunity!
Friday, June 5, 2009
What the New $8K Credit Up-front Is Likely To Do
What the New $8K Credit Up-front Is Likely To Do
(Sales must be finalized by Nov 30 to qualify!)
Most of you have already heard about the $8,000 tax credit that is currently being offered by the government to new homeowners or to those who haven’t owned a home in at least 3 years. The purpose of the credit is to boost the housing market and help the economy. A combination of very low prices and this incentive have already helped us “turn the corner” in April. Sales and offers have increased dramatically, and, though prices remain low, they also stopped declining 4 months ago. The problem with the credit is that many people cannot access $8,000 up-front and wait until the following year for the credit. New legislation is making it possible for new homeowners to access the credit UP-FRONT. Though this opportunity is not ready just yet in FL, it is coming very soon. When it does, the loan market will be flooded with more new applicants than they can handle in a timely fashion! If you’ve been considering buying a home, but you’ve been waiting to apply for a loan- DO NOT WAIT! Apply NOW! Even if you don’t buy right away, it is simple enough to renew a pre-approval, instead of applying all over again. If your credit “isn’t ready,” it can be if you start right away. Most credit issues can be resolved in less than a year. The longer you wait to contact a professional, the longer it will take and the more opportunities you’ll be missing.
Lastly, if you don’t need the $8,000 up front or don’t qualify for the credit, but you’ve been considering buying, please understand that you will have many other buyers with which to compete if you wait until the up-front goes into effect – MANY more- and it’s likely to go into effect within a month. You have a much better chance of getting the best deal before that happens. In the current state of our economy, it’s not likely that we’ll see prices make a big jump up any time soon; however, we are already seeing selection and inventory go down, and even an increase of $20K can make a difference in the affordability of a home. Everyone who knows me understands that I’m far from a pushy salesperson, but I want to be sure that everyone understands what’s going on in this market. This is literally a once-in-a-lifetime kind of a market. Do not lose the opportunity!
(Sales must be finalized by Nov 30 to qualify!)
Most of you have already heard about the $8,000 tax credit that is currently being offered by the government to new homeowners or to those who haven’t owned a home in at least 3 years. The purpose of the credit is to boost the housing market and help the economy. A combination of very low prices and this incentive have already helped us “turn the corner” in April. Sales and offers have increased dramatically, and, though prices remain low, they also stopped declining 4 months ago. The problem with the credit is that many people cannot access $8,000 up-front and wait until the following year for the credit. New legislation is making it possible for new homeowners to access the credit UP-FRONT. Though this opportunity is not ready just yet in FL, it is coming very soon. When it does, the loan market will be flooded with more new applicants than they can handle in a timely fashion! If you’ve been considering buying a home, but you’ve been waiting to apply for a loan- DO NOT WAIT! Apply NOW! Even if you don’t buy right away, it is simple enough to renew a pre-approval, instead of applying all over again. If your credit “isn’t ready,” it can be if you start right away. Most credit issues can be resolved in less than a year. The longer you wait to contact a professional, the longer it will take and the more opportunities you’ll be missing.
Lastly, if you don’t need the $8,000 up front or don’t qualify for the credit, but you’ve been considering buying, please understand that you will have many other buyers with which to compete if you wait until the up-front goes into effect – MANY more- and it’s likely to go into effect within a month. You have a much better chance of getting the best deal before that happens. In the current state of our economy, it’s not likely that we’ll see prices make a big jump up any time soon; however, we are already seeing selection and inventory go down, and even an increase of $20K can make a difference in the affordability of a home. Everyone who knows me understands that I’m far from a pushy salesperson, but I want to be sure that everyone understands what’s going on in this market. This is literally a once-in-a-lifetime kind of a market. Do not lose the opportunity!
Monday, April 27, 2009
Spring Update on Tampa Real Estate
Big changes in Tampa real estate over the past couple of months! Like the rest of the country, we had been experiencing serious declines in both prices and sales. Our recent turn-around has been shocking! Just a few months ago, there was an over-abundance of homes sitting for sale, and now our inventory is starting to dwindle and phones are starting to ring!
**Increases in sales for 6 consecutive months!
**March sales up 20% from last year!
**Prices have held steady for 3 months!
**Mulitple offers on properties!
There are a few reasons for this:
**Investors jumped in months ago.
**Banks are now renting properties if they can't get the price they want.
**Bail-out money is helping.;
My favorites:
**The govt is offering $8000 tax rebate to anyone who hasn't owned a home in 3 years!
**Interest rates UNDER 5%!!
**Banks are lending!
DO NOT allow this opportunity slip away! As a Florida Realtor, I have access to ALL homes listed for sale. We use a multiple listing service, so I can represent your family's best interests in the purchase of your next home, vacation home or investment. Don't hesitate to contact me for more information on Tampa area real estate- homes, waterfront, condos, townhomes...
www.TracySellsTampa.com
**Increases in sales for 6 consecutive months!
**March sales up 20% from last year!
**Prices have held steady for 3 months!
**Mulitple offers on properties!
There are a few reasons for this:
**Investors jumped in months ago.
**Banks are now renting properties if they can't get the price they want.
**Bail-out money is helping.;
My favorites:
**The govt is offering $8000 tax rebate to anyone who hasn't owned a home in 3 years!
**Interest rates UNDER 5%!!
**Banks are lending!
DO NOT allow this opportunity slip away! As a Florida Realtor, I have access to ALL homes listed for sale. We use a multiple listing service, so I can represent your family's best interests in the purchase of your next home, vacation home or investment. Don't hesitate to contact me for more information on Tampa area real estate- homes, waterfront, condos, townhomes...
www.TracySellsTampa.com
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