More and more home owners are trying to find ways to compete with foreclosed properties and deep builder discounts.  Besides making it look pretty, price it to sell.  The McAllister's, a couple who recently put their 1917 Craftsman-style home on the market with renovations, artwork and beautiful furnishings received three offers within two days of listing their home.   The home owners felt that any investment put into their home to help it sell quicker was made up with peace of mind. 

Pricing a home to move may sound obvious, but some home owners may not be fully aware of how important it really is.  "Distressed Properties," including foreclosures and homes at risk of foreclosure, accounted for 32% of fourth quarter transactions, according to a report out Thursday from the National Association of Realtors.  There is just too much inventory available for buyers to "pick through".  If the home owner does not have the funds available to make improvements on their home, they should really consider their bottom line and set the list price accordingly to increase traffic and bring in orders within the first 30 days.

If home owners want to compete against foreclosures, offer all of the things a foreclosure does not offer buyers.  Aesthetically speaking, foreclosures often have cosmetic work to be done.  If the home owner walls are in need of painting, the carpet is worn and the landscape is in need of attention, the foreclosure wins. Ask for a tour of competing homes and specifically foreclosures and short sales in your market area.  Know what the buyer is seeing and what your competition looks like.

New Buyer Seminar on Foreclosures, Short Sales, Auctions and NC Downpayment Assistance programs!  Click to talk with an online sales agent for more information.

According to DailyFinance.com, about 5.1 million mortgage holders will own a home that is worth 75% or less than what they owe on the home. A new study drawn by First American CoreLogic then given exclusively to the New York Times states that it would take $745 billion dollars to get mortgages to the point where no home loans in the United States were underwater. Ironically, that is somewhere around the amount that the banks received for their bailout???

RealtyTrac has recently estimated that there will be a rise from last year's foreclosure rate. They are estimated roughly 3 million homes will go into foreclosure in 2010. We are still waiting for the federal government for a long-term solution. Adding more money to this problem may not be an option since the federal budget deficit this fiscal year is projected to be nearly $1.6 trillion.

We will continue to see a sharp increase in short sales and foreclosures in Mecklenburg and the surrounding counties. As a Certified Distressed Property Professional, I am able to assist buyers and sellers navigate through the ups and downs of our housing market with less stress, more ease while keeping more money in your pocket. Call me today, Sandra Allen at (704) 559-5988 X5 for more information on buying short sales and foreclosures or if you are an owner of a distressed property.

Faced with criticism, the Treasury department outlined new guidelines to help streamline the loan modification process under the adminstration's Home Affordable Modification Program that started over a year ago.  The previous paperwork required an overwhelming amount of forms to include 2 year's tax returns, paystubs, hardship letters, etc.. The new guideline specifies that borrowers provide three items to loan services; a form requesting a loan modification, authorization for the servicer t seek tax returns from the IRS an evidence of income.

As of December 31, roughly 900,000 borrowers had been given trial modifications, but only 66,465 had been converted to a permanent loan modification.  As of September 30th, about 7.5 million households were behind on payments or in the process of foreclosure.

If you are a buyer looking for short sale properties in need of immediate or if you are a seller in need of avoiding foreclosure by short sale or if you are in need of loan modification information, please click here.

New records are being set daily according to recent RealtyTrac reports.  Foreclosures have increased 21% from this year last year and 120% from 2 years ago. Foreclosures have come in 3 waves. The first wave consisted of originated loans with bad lending practices coupled with overvalued homes. The 2nd wave of foreclosures which we are currently in is being caused by a down economy and job loss. The 3rd wave will be led by the adjusting of option ARMs and adjustable rate mortgages on homes that are worth less than their current loan.  A great amount of option ARM loans have an above average loan amount.

Foreclosures are expected to increase greatly in 2010.  Option ARM mortgage homeowners and homeowners experiencing job loss will probably not qualify for the HAMP program, Home Affordable Modification Program due to homeowners who will default this year with adjustable rate mortgages and job loss not meeting the program's guidelines and eligibility requirements.  For more information, please view the video below.

Many home buyers have found themselves at the closing table surprised at the difference in closing costs due from what was originally quoted to them.  A Good Faith Estimate(GFE) is just that, an estimate.  Mortgage brokers and lenders provide loan applicants with these figures within three days of making an application for a home loan.   New federal rules were adopted on January 1st regarding the GFE, driven by the Department of Housing and Urban Development.  These new rules mandated the redesign of a simplified Good Faith Estimate form. 

Previously, lenders had no standardized format on how these fees were explained.  "Fees were communicated in multiple ways, which adds to the confusion when comparing costs," says Keith Gumbinger, a vice president at HSH Associates, which tracks the mortgage market. Under the new rules, lenders will all be required to use the same form for their Good Faith Estimates - a three-page document issued by HUD.

There are also new rules capping increases in costs that are disclosed on the Good Faith Estimate and guidelines so that fees listed on the initial GFE reflect the actual cost at settlement. "Those fees on the GFE at the beginning of the process will be the same on HUD-1 form [final settlement statement] at the end of the process," says Mr. Gumbinger.

Here is the summary of information on what changes to expect with the new federal rules regarding good faith estimates:

1. Fees that cannot change from the original GFE to final settlement.

2. Fees that can increase up to 10% at settlement.

3. Fees that can change without limit.

Borrowers may see an increase in the overall costs that lenders charge to originate a loan.  These new rules will cost lenders in the way of new software, new documents and new training. 

 If you would like current mortgage information, please click here for more information.