Tell me what you know about the housing market…are things getting better? Worse? The same?  If you don’t know, who does? 

We read about Fannie and Freddie coming to the rescue but we’re still rescuing both of them…with Freddie asking for another $10.6 billion the other day.  Sure Freddie, no problem, where should we send the check…and…let us know when you need some more.  We’ll be sending a check to Fannie too.

Perhaps you’ve read some of what I’ve been reading lately…that over 4.6 million homeowners are more than 60 days behind on their mtges.  Oh no, wait, another source says the number is over 6 million.  Maybe it’s worse than we’ve been told…think?  Most of these mortgages are backed by these two giant bunglers…what does that mean…we’ll need to write more checks?  But hey, I’m running short myself…are you?

And get this, in July, a new program will be kicked off by these two - to help homeowners who have to give up their homes in a short-sale, come back to the table in two years and buy again.  Huh…What?  Is anyone checking the checkbook?

Funny story in MoneyNews.com…a big guy at JP Morgan Chase, David Lowman, when at a congressional hearing not long ago, says to the question - who could mortgage borrowers turn to if they felt his bank’s employees were not helping them hold on to their homes - “Come to me!”  Well, 50 borrowers came forward from the audience, at this invitation, presenting him with a document alleging his bank reneged on a pledge to help struggling homeowners.  So what did our hero do?  “He ran like a dog with its tail between its legs,” said Bruce Marks of the Neighborhood Assistance Corporation of America (NACA), which helps homeowners avoid foreclosure.  Didja know about this organization?  I didn’t.  If you know someone who should know about them, please pass this along!

Not all banks are equal though and some are loosening up on the lending side.  The majority are still pretty tight though.  The Fed Reserve’s senior loan officer survey recently showed most banks kept credit tight in the first quarter and residential mortgages saw continued tightening in terms.  This according to an article by Sudeep Reddy in the WSJ.

Now you need a minimum credit score of 640 and 5% down for conventional or 3.5% down for FHA mortgage qualification.  Terms are getting tougher so if you’re in the market to buy a home, get busy before terms get even tougher and rates (rates that are still terrific today) go up.  You do know that rates will definitely go up…?

Where the short-sales and foreclosures will take home prices is still a guess but if you’re putting money on it, I’d go with continued price drops and amazing deals for the next 18 months or so.  If you can buy…buy now!

If you need cash to fix up a short-sale or foreclosure purchase, we have sources and programs that you can use to get it done…roofing, siding, windows, floors, even new appliances!  So call us today and we’ll fill you in.  Take advantage of the greatest buyer’s market in the history of Real Estate!

The amount of inventory leading to outstanding deals is enormous. 

We’ll e-mail a list to you today.  Just tell us where and what you’re looking for.

If you need help selling or buying, call us for more info today!

Can’t hurt to talk ‘eh?

Ed

http://www.dailywealth.com/1338/Another-Way-to-Profit-from-the-Coming-Plague-of-Busted-Banks

Have you ever seen ads for pricing your home…”Free service, just sign up and receive your free home analysis.”  Did you wonder what the catch was…whether you’d really get the free analysis?

Well, most of these sites direct your inquiry to an agent who has purchased a zip code, city or county, as an ‘exclusive’ arrangement for obtaining leads.  That’s right - the e-mail or call you’ll get will be from the agent who made this deal with the site owner.  No problem…if you’re OK with that but if you thought you we’re not going to be on an agent’s radar, not so good?

Most any Broker will give you a “CMA,” (comparative market analysis) for your home.  Some will require you let them visit your home and they’ll come armed with their ’sign here’ listing agreement.  Others will e-mail it to you and follow up to try to get your listing.  Hardly ever will you get an e-mail with the info you requested and no strings attached.  Now the home visit is important as whatever amenities you might have could add to the value…things like granite counter tops, ceramic baths, new appliances, etc.

I remember years ago, working with one of these sites, and the surprise and alarm the homeowners displayed when I called. (A very watered-down description of their reaction.)  I cancelled the service as I felt it violated the homeowner’s goals.

Many of these sites host tutoring seminars aimed at teaching the agents how to sneak up on these unaware home owners.  Clever stuff, this?

Here’s what we do here but before I get to that, here’s what you should know about this game:  Realtors don’t get paid to do these evaluations…unless you’re willing to pay them?  Realtors often do a lot of work for nothing and they, much like yourself, don’t like to work for nothing…right?  Realtors are concerned that they’ll do this work for you and find you’re really not ready to sell but were just curious about what your home might sell for…if you were going to sell it.  Or, they’re concerned that they will give you the data you need and you’ll then call some other Realtor to sell your home.  Could happen, right?  So, what’s the answer, how do you get what you want without paying for it or being hassled to list your home with a Realtor you don’t even know?

Simple solution, call us…no obligation on your part…straight forward honest ‘CMA’ will be done for you.  And, when we visit your home, we do not have anything for you to sign.  You’ll get the info you asked for within 24 hours.  We feel that if we treat people with dignity and respect, providing this service without a ‘hitch,’ when they’re ready to sell they’ll get back to us.  So, fear not, no funny stuff, just good and accurate service you can depend on!

So if you’re considering the sale of your home, check it out ASAP…most industry sources feel that a lot more foreclosures will come in the next few months, putting  additional downward pressure on home prices.  Also, in this part of the country, home sales are the highest between now and July.  Again, check it out…can’t hurt to be informed?

Buyers have only two weeks to identify the home they want and get a purchase offer in place, in order to get the govt. tax break.  Why pass on a $6,500 (buyers who have not bought a home in the last five years) to $8,000 check or tax credit from the govt.?  This is big…get your share.  You have to have a signed deal before the end of this month and a close date by the end of June.  The clock is ticking and we know we can find the home you want within the next two weeks.  Give us a call and take advantage of our ‘cooperative search’ process, whereby you also get extra cash when you close on your new home.

Any stories you care to share with our readers?  We’d love to hear from you.  Just click on the title of this post and a comment box will open.

Ed (651-770-5000)

  So on 4/30/2010 this Birdie flys away and takes with it the $8k/$6.5k tax or cash benefit. 

  You won’t miss it, will you?  Buyers still have time to find the home they want and nail

  down this huge govt. hand out!

We can find the home you want in less than 30 days, so hang with us and we’ll get you there in time.  The housing inventory is exceptional, you name it and it’s out there for you.  Best part is; the deals are unreal and you’ll probably never see it better in your lifetime!  Add to this, the rates that continue, at least for now, at record lows…and…the FHA203k program to help you with the cash you don’t have…to make repairs and improvments.  That means you can get a short-sale or foreclosure property that needs some fixin and appliances - to look like new before you move in!  Seriously, if you can buy, BUY NOW!   http://money.cnn.com/pf/loan_center/index.html

FHA is still at 3.5% down, and up to 6% for closing cost request from sellers.  Rates are still just over the 5% mark but all indications are, we’ll see a serious rate increase starting soon.  Don’t let it happen to you…Buy Now!

Home ownership declined some in 2009.  With some of the older short-sales and REO’s getting sold, we’re hoping for an uptick in the traditional home sales.  While some markets report slight price increases, this may still be a ’skewed’ result due to the lower priced, distressed stuff going away.

Many pundits see the market prices dropping even further due to the expected glut of homes that were held back from short-sales, as the owners tried to qualify for mtge payment reductions and/or, principal reductions.  So few have been able to qualify and of those that have, over 35% are back in the soup within months, failing to carry out the plan.  These homes will show up next.  How many, is anyone’s guess.

Another move by the FED, that will no doubt have a serious affect on the market, is their decision to stop buying mortgage-backed securities.  This could result in rate increases and diminish the ability of buyers to qualify for loans, or, limit their ability to buy the house they want?

We have been helping buyers get outstanding deals and rates throughout this housing mess.  We can help you too.  Give us a call to discuss the possibilities.

If you’re ‘upside down’ in your equity position and wonder whether you should jump on the ‘HAMP’ band wagon, or sell or short sell, give us a call and we’ll fill you in.  There’s a lot to learn and it won’t cost you a dime to get this info.

If you’re interested in selling but question whether this is the time to try, call us…we’ll give you all the market info you need to make a decision that serves your best interest.  No charge here either!

We work with a lot of investors to help them meet their goals, both on the buy and the sell side.  If you’re an investor who could use some help, give us a call…can’t hurt to talk?

 We love to hear from ourt readers.  If you’d like to comment on this or any other post, just click on the headline and a comment box will open for you. 

This mess will end.  Mean time, let’s work together to get you where you want to be!

Our best to all of you!

Ed (651-770-5000)

Picture this…main watering hole for the agents of  a large Brokerage office…”Happy Hour!”   The agents are having a drink and sharing their weekly  war stories.  Let’s listen in:

“So Freddie, didn’t I hear you nailed a ‘hogger’ this week?”  “Yeah baby, you heard right…I’m at the house, a $475,000 listing, putting up a rider on the sign that says ‘Great N’Hood,’ and a couple drives up and wants to see it.  Ms. Homeowner was just leaving to get groceries and told me to go ahead and show it, so I did.  They liked it and said to write up an offer.  I showed the offer to the sellers and they went with it.  So…I didn’t have to split the commission with another agent…got the whole 6%, $28,500 for myself…hogged that one!”

See, in a normal situation, the listing agent lists the house at 6% and when a different agent brings a buyer, the selling agent gets 2.7% ($12,825) and the listing agent gets 3.3% ($15,675). The listing agent is the one that covers the marketing expense of the house.  Only makes sense the listing agent should get more…to offset expenses , right? 

 The listing agent probably took pictures (no cost?), made brochures ($15. ?), provided copies of the disclosure document ($5.?), had a yard sign installed ($40.?), spent a couple hours working with the home sellers, before the listing was secured, showed the home a few times (4 more hours?), took calls from other agents who showed the home (two more total hours?), wrote the offer (another hour and a half?), and will attend the closing (another 2 hours?).  So, a total of 11.5 hours.  But I usually find an agent will spend about 20 hours per deal.  So lets say the agent worked 20 man hours and had total expenses of $60.  Landing the hogger means he made $28,500 - $60 = $28,440 divided by 20 man hours = $1,422 per hour.  Yeah baby, hog it up!

Most buyers don’t understand this whole process.  They’ll sometimes be working with their agent but attend an open house or call to see one from the info on a sign and the listing agent shows them the house, writes the deal and gets a “hogger” on it.  The agent the buyers has been working with, sometimes for months, gets absolutely nothing and the agent that wrote the deal…spent maybe, a couple hours with the buyers, gets the big reward.  Bad deal, this?

Agents are supposed to not only ask a potential buyer if they have an agent, they’re suipposed to defer to the other agent, if there is one.  Then, if there is no other agent, the listing agent is required to disclose to the potential buyers, on an “Agency” document, how the process works…and…have the buyers sign it.  But do they?  The Hoggers are in waiting…c’mon uninformed buyers…line up!

When you start working with an agent, if you’re happy with them, have them set up all showings and situations for you.  That’s the only way they can get paid.  Don’t hand over the pay to some agent you don’t even know, who hasn’t done a thing for you.  And, if you do look at a home while in the search process, if the showing agent does not ask you if you are represented by another agent, let your agent know about it…the showing agent is either derelict in their procedure or unethical or plain stupid?  Would you want to reward someone like that?

One more thing (I’ll bet many readers are wondering about this), If a listing agent was happy with the normal way home sales pay out…and…an unrepresented buyer comes along…and…the offer is less than the sellers want…why wouldn’t the listing agent offer up all or part of the 2.7% he wouldn’t have to pay out to another agent, to help his sellers?  We do here…we do even more…check us out?

Beware…the “Hogger” may come your way?

Next: How to get the best deal when qualifying for a mortgage!

Ed

Whether you’re downsizing, up-sizing, investing in real estate or buying your first home…buying now, right now…is the best time to buy in 40+ years!

With over 7 million home owners behind on their mortgages, the already huge inventory of homes will get even bigger.  The choices available are phenomenal!

We’ve recently looked at so many foreclosures and short-sale homes and find a good percentage are not beat up at all.  In addition, many are eligible for the super FHA 203k plan, whereby you can get the fix-up cash you need…and…it gets better, since most of these will be devoid of all appliances, this program will kick in cash for that as well.  Nice! 

One of our “pros” recently put his client in a home that sold in the $230k’s just a few years ago.  Now, our client is in a large 4 bedroom, 2 bath home on a large, fenced lot with landscaping, a very big - new asphalt drive, new interior fixtures, new bath fixtures, new electrical box and some wiring, new plumbing, some new carpet and all new - higher end appliances.  He’s on cloud nine, thanks to our pro being informed.

All this was financed through this terrific FHA product and the client has nearly a new home.  He’s in it for the $164,900 he paid, plus the $25k he didn’t have but the FHA plan provided.

If you care to know how this plan could work for you, give us a call and we’ll give you the details.  We have so many first time buyers that know they can get a good deal but just don’t have the money to make repairs.  Find out how this plan can get you in the home you want and put the cash in your hand that you need.

And by the way, for those of you that would like to stay in your home, vs. a short sale or letting it go into foreclosure, give us a call, we’ll help you get the info you need.  No worries, you don’t have to be selling or buying, this one’s on the house!

We come across so many people that don’t understand how the “HAMP” program works…or…they’ve called their mortgage company and get nowhere on the phone with them.  You have to know how to work with these birds and what the rules are because half the time, they don’t know themselves.  Let me share a success story with you:

another of our “pro’s” is talking with one of our clients; a single mom with a serious financial crisis…less hours and very reduced pay, no where near the child support money she needs and…increased mortgage payments from an adjusted rate mortgage plan.  What to do?  She calls her lender and is told they will have to see if she’s qualified to adjust her payment…they’ll get back to her.  Weeks go by, no call back. 

She calls again and gets the same story.  (Enter our guy.)  She tells him what’s going on and he tells her she is qualified and asks her to give him an authorization letter, where he will be allowed to talk with her lender on her behalf.  He called the lender and told them she was absolutely qualified, to read the mandates and get busy helping this lady.  Within days…new ball game.  The lender is cooperating and the mortgage will be adjusted to a comfort level for her.  The family can stay put!

                                                                   Dontchaloveit!

And don’t be embarrassed if you paid too much, have no equity and the bank is on your case. (Cute story,see theWSJ /2/8/2010 by JamesHagerty.)  

My interpretation: the MBA (mortgage bankers association), movers  and shakers…right(?)…paid $79 million for their newer headquarters in 2007.  They thought they might be better off to sell it now.  They have an offer and it looks like they’re going to take it.  They owe the bank $75 million but the offer is for less, only $41.3 million.  Oh shucks…looks like they’ll have to come to the close with the balance…right?  Oh, but some good luck, they may not have drawn the whole amount because the bldg. was under construction.  They’ve refused to be interviewed about their intentions.  Smell fishy to you too?  But wait..there’s more!

Their chief executive, John Courson, in an interview last year, said that people that were “under water” -borrowers owing more on their home than it was worth- should keep paying their loans if they could.  He went on to say defaults hurt by lowering property values and sent the wrong message to their kids.  Well guess what?  He refused to be interviewed about what his Association was going to do about the balance owed.  Can we guess what that means?  Funny stuff, this?  You should feel bad about your situation?

                        Call us, we’d be happy to help you end the financial pain!

Back to the “buy” side; rates we thought were going up are still in the 5% range and jumbo rates are still in the 5.5% range…hey…the time to buy is right now…remember…you make money in real estate “on the buy.”  Also, if you’re buying to occupy, there’s the $6.5k to $8.5k govt. tax credit, or, cash if you don’t owe taxes. But that will blow away if you aren’t under contract by the end of April and scheduled to close by June 29th of this year.  Doesn’t look like they’ll extend it either…so…latch on if you can! 

Next time: “The Hogger.”  (Don’t miss it, it’s pretty funny…pathetic…but funny.)

Ed