Well, aren’t you lucky…the FED’s bailout is going to help home owners and sellers in trouble.  Really?  And when will this happen, when?

The driving factor for home sales from 2003 - 2006 was the “0″ down bit, accompanied by the ability for buyers to roll their closing costs back on top of the offer = no money out of pocket to buy = very risky loans.

Fannie and Freddie got hit in a big way and now, the mortgage game has some very serious restrictions, no more “0″ down and nearly impossible to roll closing costs into the loan. (Exception being the FHA’s 6% back from the seller and the  203-k program.)

Then again, FHA (founded in 1934 to provide mortgage insurance for lenders, in case of default), is still offering insured loans with only 3% down.  In fact, in 9/07, they insured $6 billion of these…and…this year, they insured $25 billion of these that’s over 4 x the ‘07 #.   Wonder who’s watchin this store?

As I’m writing this post, I checked the MLS for the T/C “core” counties: Ramsey, Hennepin, Dakota, Anoka, Washington, for the number of homes for sale for: less than $100,000, $100,001 to $200,000,  and for the number of homes for sale built in 2003 or newer.  Absolutely mind boggling!  I’ll give you the numbers a little later in this post.

If your selling and you’re too close to the bone, to pay out 5 -6 or 7% to sell your home, call me right away, I can probably save you from 3% to 5.5%…that means you’ll save thousands of dollars…or…not have to bring money to the table to close?

I’ve recently been able to help two home sellers, pay only $495 to get their homes sold.  If we talk, remind me to tell you how this was done.

So many home owners have learned that they can’t refinance because their homes are worth less than when they bought them.  Those who had ARM’s or % only financing, have seen their payments get jacked up past what they can afford to pay.  If they can’t pay, their options are; short sale or let it go into foreclosure.

The homes that are selling now are those that have maximum exposure, show well, have a minimum of repairs necessary, are priced competitively and offer financing help.  You have to look good and get the maximum exposure you need.  We use one website that gets over 6 million visits monthly and we get your home in over 700 other websites as well.

If you’re having trouble with your mtge., you might want to check out the “Hope Now” program, promoted by Tres. Scty. Henry Paulson.  It began as an effort by housing counseling agencies and mtge. service providers, to modify loans on a voluntary basis.  Home owners in trouble are to call 888-995-hope.  The orginization charges borrowers $300 to get help.  Some banks are willing to add past due payments to the loan and structure a new payment plan to bring the home owner current.  In many cases, the new payment is higher than the old one…hmm, what’s up with that?  I may have it wrong though, so check it out at “Hope Now.”

A source for the forms used for short sales and foreclosures can be found at genworthfinancial.com.  If you’re contemplating either solution, check them out.

We’re spending a great deal of time lately on short sales.  The process is complex and if you don’t send in the total package lenders require, your request will go to the back of the line and you may not get an answer for months.  Call me for the list of what you’ll need to send and I’ll mail it to you, no obligation of course.

In general, we find that 1st. mtge holders want to get at least 90% of what you owe them.  The second mtge holders like to get 10% or more of what you owe them, but will often take as little as $1,000.  EG: a home owner owes a total of $300,000…$240k to the 1st mtge and $60k to the 2nd mtge.  The deal may be accepted for $216k to the 1st and $6k to the 2nd = $222k total.  We’ve seen even lower numbers for a case like this.  The key to success is in the ability of the listing agent to negotiate with the lenders.  I feel I offer seller’s this expertise.  So, if you’re in a jam like this, give me a call…can’t hurt to talk, right? Also, if the pundits who surround you tell you that you’ll have to pay income taxes on the difference, Google up: IRS 982 and study this information.  If you don’t understand, talk with an accountant, your pundits may have it wrong…as usual?

Oh yeah, the numbers for paragraph #5 above: # selling for $100,000 or less in these counties = 1,200

# selling for $100,001 to $200,000 = 4,385

# selling that were built in 2003 or newer = 2,031

If you’re buying, see our “Buyer’s Incentives” above…it could be worth thousands of dollars for you!  Plus, we can really deal for you.  We have all the tools for a  strategic approach; price points, amenities +/-, days on market, etc.  Call me, let me help you get the best deal and give you cash back at the closing for your help in the process.  And, if you have to sell to buy, we need to talk about that as well.  Remember, it’s worth thousands for you!

I’ve talked with a lot of prospective seller’s who have put their plans on hold, after we examined the whole truth about this market.  I’ve also helped many home seller’s in trouble avoid total financial disaster.  What you want to accomplish is the most important element, lets talk about your goals and see if we can come up with a plan that makes sense.  Doesn’t cost a dime to plan, let’s get a plan put together for you.

Give us your story,  tell us about any experience you’re having with today’s topics, or selling or buying real estate.

Ed