Have you ever wondered what happened to the 56 men who signed
The Declaration of Independence?
Five signers were captured by the British as traitors,
and tortured before they died.
Twelve had their homes ransacked and burned.
Two lost their sons serving in the Revolutionary Army;
another had two sons captured.
Nine of the 56 fought and died from wounds or
hardships of the Revolutionary War.
They signed and they pledged their lives, their fortunes,
and their sacred honor.
What kind of men were they?
Twenty-four were lawyers and jurists.
Eleven were merchants,
nine were farmers and large plantation owners;
men of means, well educated,
but they signed the Declaration of Independence
knowing full well that the penalty would be death if
they were captured.
Carter Braxton of Virginia, a wealthy planter and
trader, saw his ships swept from the seas by the
British Navy. He sold his home and properties to
pay his debts, and died in rags.
Thomas McKeam was so hounded by the British
that he was forced to move his family almost constantly.
He served in the Congress without pay, and his family
was kept in hiding. His possessions were taken from him,
and poverty was his reward.
Vandals or soldiers looted the properties of Dillery, Hall, Clymer,
Walton, Gwinnett, Heyward, Ruttledge, and Middleton.
At the battle of Yorktown , Thomas Nelson, Jr., noted that
the British General Cornwallis had taken over the Nelson
home for his headquarters. He quietly urged General
George Washington to open fire. The home was destroyed,
and Nelson died bankrupt.
Francis Lewis had his home and properties destroyed.
The enemy jailed his wife, and she died within a few months.
John Hart was driven from his wife's bedside as she was dying.
Their 13 children fled for their lives. His fields and his gristmill
were laid to waste. For more than a year he lived in forests
and caves, returning home to find his wife dead and his
children vanished.
So, take a few minutes while enjoying your 4th of July holiday and
silently thank these patriots. It's not much to ask for the price they paid.
Remember: freedom is never free!
I hope you will show your support by forwarding this to as many
people as you can, please. It's time we get the word out that patriotism
is NOT a sin, and the Fourth of July has more to it than beer,
picnics and baseball games.
HAPPY 4th TO YOU AND YOURS!!!
Thursday, July 29, 2010
You Can Afford to Buy and Haven't...Are You Crazy?
This may be the best buyer's market that we'll see in our lifetimes. There are lots of legitimate reasons why a person should be taking advantage of this market if they are able.
Obviously, if a person doesn't have the down payment or credit score, they won't be able to seize this opportunity. If a person is concerned about losing their job, that would be a valid reason for not buying now. If you are planning on relocating in the next year or two, maybe now isn't the time to buy.
On the other hand, if a person doesn't own a home, has good credit and job stability, they should seriously consider capitalizing on this unique combination of opportunities. A qualified real estate professional can explain all of the reasons and even suggest some very interesting financing alternatives.
Top Ten Reasons to Buy a Home NOW
1. Interest rates incredibly low – the rates are hovering at near historic lows. Interest rates play a huge part in the cost of housing together with the price and shouldn't be overlooked. The average mortgage interest rates for the past four decades were: 1970's 8.9%; 1980's 12.7%; 1990's 8.1%; 2000's 6.3%. Most experts agree that they're going to rise this year.
2. Lower Prices - Recent price adjustments have made good values that haven’t been available in some situations for years. Current buyers are able to take advantage of the discounted prices.
3. Selection is good – In a seller's market, buyers sometimes have to accept a home that may not meet their needs completely because of short supply. Inventories in most markets and certain price ranges are higher which allow buyers better choices.
4. Negotiate financing concessions – FHA, VA, and Conventional allow the seller to contribute towards financing concessions for the buyer. The money can be used for buyer's closing costs, pre-paid items or interest rate buy down.
5. Costs for FHA loan going up – Currently, a seller can pay up to 6% of the sales price in financing concessions but the number will be reduced to 3% later this year; the date has not been announced yet. The annual MIP for FHA loans will also probably be going up this year which will increase the monthly payment. Buyers who get in now will pay the lower fees.
6. Interest and property tax deduction – the U.S. is one of the few countries in the world that allow an interest and property tax deduction for homeowner/taxpayers.
7. Source of funds with deductible interest - a homeowner can borrow up to $100,000 above their acquisition debt and deduct the interest regardless of what purpose the money is used. This is a great opportunity to consolidate debt at a lower interest rate and be able to make the interest deductible that otherwise may not have been.
8. Capital gain exclusion – the U.S. allows qualified homeowners to make a profit on their home without having to pay tax on the gain.
9. Borrowing against equity is non-taxable event – taking money out of the equity in your home does not require recognizing capital gains income.
10. The combination of reasons to buy a home may never be stronger than now.
Interest rates are going up; it is just a matter of when. Inventories are starting to be absorbed by current demand. New home construction is down considerably which could lead to higher prices due to not enough annual housing units to keep up with the population. Prices have started to climb in some markets; others will surely follow.
A basic rule of investing is to buy low and sell high. There will be some buyers who take advantage of the current opportunities and will look back and remark how fortunate they were to act when they did. There will be others who look back on these conditions and say "We should have bought then." Hindsight is always 20/20. Evaluating the present and acting takes equally clear vision. The help of a trusted professional can make the difference.
Sunday, July 25, 2010
Should I Go Bankrupt versus Short Sale or Foreclosure?
First, let me get the legal portion out of the way-----I am a Realtor, not an Attorney, or a CPA, so before you do anything, I highly advise legal and financial assisstance from qualified people!
Now that's done, let's get back to the topic at hand. I am going to provide information that may or may not help you. I will be talking in general terms and everybody's circumstances are different, so what I tell you will hopefully give you some answers or at least point you toward finding the right answer for your circumstances.
Bankruptcy
People think that a bankruptcy will cleanse them of their debts. That is a myth. Here is why. Yes, it's true, that a Chapter 7 Bankruptcy will release a debtor of all debts. The problem is that most the bankruptcy laws were changed in 2005. This law makes it much harder to file a Chapter 7 bankruptcy. Now the judges have to steer debtors towards a Chapter 13.
What does a Chapter 13 bankruptcy mean? It means that a debtor will have to repay part (if not all) of their debts. In addition, the debtor has their finances managed by the bankruptcy trustee. And, the debtor has to pay that trustee!
AND, I have heard that 96% of the people that go into Chapter 13 are not able to complete the plan. Ask the attorney what happens if you can't make the payments the way the court sets it up. As I understand it, you are right back where you started with the crediters calling again.
Most big companies don't have the stomach to do the hard work of collecting money. That is why they farm that hard work out to a collection agency. What does the collection agency do? They just call the person over and over again.
Very few collection agencies are going to do what is actually necessary to force the borrower to pay. And that is file a lawsuit. If they ever do file a lawsuit, the court system is so backed up that it's hard to get a judgment. And what good does a judgment do them?
Statistics show that only 20% of all judgments ever get collected. Why do I tell you this? Because so many short sale sellers instead declare bankruptcy. They don't want to waste time on a short sale. So they don't do one.
Just remember, a bankruptcy stays on your credit for 7 years. And I have heard of people buying another home 1 year after a short sale. As far as foreclosure goes, Fannie Mae & Freddie Mac (government agencies that own about 50% of all mortgages) are talking 3-5 years before they will loan you money. We aren't sure of the actual number yet.
Again, as I started out this article, please get with an attorney and a tax person so you know legally what to expect. Should you have more questions, don't hesitate to leave a response below.
Now that's done, let's get back to the topic at hand. I am going to provide information that may or may not help you. I will be talking in general terms and everybody's circumstances are different, so what I tell you will hopefully give you some answers or at least point you toward finding the right answer for your circumstances.
Bankruptcy
People think that a bankruptcy will cleanse them of their debts. That is a myth. Here is why. Yes, it's true, that a Chapter 7 Bankruptcy will release a debtor of all debts. The problem is that most the bankruptcy laws were changed in 2005. This law makes it much harder to file a Chapter 7 bankruptcy. Now the judges have to steer debtors towards a Chapter 13.
What does a Chapter 13 bankruptcy mean? It means that a debtor will have to repay part (if not all) of their debts. In addition, the debtor has their finances managed by the bankruptcy trustee. And, the debtor has to pay that trustee!
AND, I have heard that 96% of the people that go into Chapter 13 are not able to complete the plan. Ask the attorney what happens if you can't make the payments the way the court sets it up. As I understand it, you are right back where you started with the crediters calling again.
Most big companies don't have the stomach to do the hard work of collecting money. That is why they farm that hard work out to a collection agency. What does the collection agency do? They just call the person over and over again.
Very few collection agencies are going to do what is actually necessary to force the borrower to pay. And that is file a lawsuit. If they ever do file a lawsuit, the court system is so backed up that it's hard to get a judgment. And what good does a judgment do them?
Statistics show that only 20% of all judgments ever get collected. Why do I tell you this? Because so many short sale sellers instead declare bankruptcy. They don't want to waste time on a short sale. So they don't do one.
Just remember, a bankruptcy stays on your credit for 7 years. And I have heard of people buying another home 1 year after a short sale. As far as foreclosure goes, Fannie Mae & Freddie Mac (government agencies that own about 50% of all mortgages) are talking 3-5 years before they will loan you money. We aren't sure of the actual number yet.
Again, as I started out this article, please get with an attorney and a tax person so you know legally what to expect. Should you have more questions, don't hesitate to leave a response below.
Saturday, July 24, 2010
Are You Under Water With Your Mortgage?
Alot of home owners today owe more on their mortgage than what the home is actually worth! I agree.....this suc........ Depending on the circumstances, there are possibly ways out of your problem! Now, don't get me wrong. I can't help everyone, just most.
Now, before I get into this subject further.......BEWARE......There are "people" (and I use that word loosely) out there that are trying to take advantage of you. When times get rough, the con men flourish! Don't sign anything you don't understand, you may be giving up the title to your home. Also, don't pay money up front!
My job as a Realtor is to assist you. They may be just providing information or answering questions, such as, "What are the differences between a short sale and a foreclosure and how will both effect my credit in the future?"
One example of information is the website where military personnel being reassigned, but owe more than they can sell their home for, can get help from the government.
For today's information, I am including an article from the Realtors' Magazine written by Melissa Dittmann Tracey. It discusses real estate scams. Please read it and don't allow yourself to become a victim.
5 Real Estate Scams You Need to Know About
Don't be duped by mortgage fraud. Here are a few common scams and the red flags you should look for in a transaction.
By Melissa Dittmann Tracey
Mortgage fraud is pervasive: An estimated $4 billion to $6 billion in annual losses result from mortgage fraud, according to FBI reports. “An entire community can be damaged by mortgage fraud,” says Rachel Dollar, a lawyer from Santa Rosa, Calif., and editor of the Mortgage Fraud Blog. Mortgage fraud can lead to a spike in foreclosures, home values plummeting, and lenders raising their rates and fees to recover losses.
The crimes are often complex, involving several parties and occurring over multiple transactions. To protect you and your clients, educate yourself about mortgage fraud and be on guard for any warning signs in a transaction.
1. The Foreclosure Rescue Scheme
The Scam: “Rescuers” promise cash-strapped home owners that they can save their home from foreclosure. The rescue, which involves paying upfront fees, can take multiple forms, such as the perpetrator obtaining a new loan on behalf of the owner or by having the owner sign over the home’s deed and then rent the home until they can repurchase it. Eventually, the home owner loses the home, either to foreclosure or the fictitious rescue company.
Red Flags: With foreclosure rescue programs, borrowers are often advised to sign over the title of their house to a third party, become renters of their home, not contact their lender, or send mortgage payments to a third party, according to Fannie Mae, which provides fact sheets on mortgage fraud.
2. Loan Documentation Fraud
The Scam: This fraud involves numerous schemes in which a borrower provides inaccurate financial information — such as about their income, assets, and liabilities — or employment status in order to qualify for a loan with lower rates and more favorable terms. Occupancy fraud is one growing area: Borrowers say they plan to live in the property when they actually intend to rent it.
Red Flags: Documentation may raise suspicion if the employer’s address is shown as a post office box, accumulation of assets compared to the person’s income appears too high or low, the new house is too small to accommodate occupants, the person has no credit history, or the application is unsigned or undated, according to Fannie Mae.
3. Appraisal Fraud
The Scam: A faulty appraisal — saying a property is worth more than what it really is — is connected to many types of mortgage fraud. It entails manipulating or overstating comparables, market values, or property characteristics in order to obtain a higher appraisal. The higher property appraisal, which generates false equity, is done by falsifying an appraisal document or using an appraiser accomplice to obtain the higher value.
Red Flags: Be skeptical of appraisals that are dated prior to the sales contract, list comparable sales that do not contain similarities to the property or are outside the neighborhood, the owner is not the seller listed on the contract or the title, or a third party participating in the transaction orders the appraisal, Freddie Mac warns.
4. Illegal Property Flipping
The Scam: This entails purchasing properties and reselling them at inflated prices. These scams usually involve faulty appraisals and inaccurate loan documents. The property is then refinanced or resold immediately after purchase for an inflated value. The home is purchased at a higher price, often by straw buyers working with the “flipper,” and eventually falls into foreclosure.
Red Flags: Some key things to look for are rapid refinancing of a property; the seller recently having acquired the title or acquiring the title concurrent with the transaction; an appraisal that comes in too high; a property that was recently in foreclosure being purchased at a much lower price than its sales price; or the owner listed on the appraisal and title not matching the seller on the sales contract, according to Fannie Mae.
5. Short Sales Schemes
The Scam: Borrowers owe more than the current value of their home so they fake financial hardship and no longer make their mortgage payments. An accomplice of the borrower then submits a low offer to purchase the property in a short sale agreement. The lender agrees to the short sale, unaware that it was premeditated. The property, after being purchased at the reduced price, is then often resold at the home’s actual value for profit.
Red Flags: The borrower suddenly defaults on the mortgage with no workout discussions with the lender, an immediate offer is made to a lender at a short sale price, the short sale offer is less than current market value, or a cash back is offered at closing to the delinquent borrower (disguised as “repairs” or other payouts, for example) and is not disclosed to the lender, according to Fannie Mae.
You can report instances of suspected mortgage fraud to www.Stopfraud.gov.
Melissa Dittmann Tracey is the multimedia Web producer of REALTOR® magazine. She can be reached at mtracey@realtors.org.
Now, before I get into this subject further.......BEWARE......There are "people" (and I use that word loosely) out there that are trying to take advantage of you. When times get rough, the con men flourish! Don't sign anything you don't understand, you may be giving up the title to your home. Also, don't pay money up front!
My job as a Realtor is to assist you. They may be just providing information or answering questions, such as, "What are the differences between a short sale and a foreclosure and how will both effect my credit in the future?"
One example of information is the website where military personnel being reassigned, but owe more than they can sell their home for, can get help from the government.
For today's information, I am including an article from the Realtors' Magazine written by Melissa Dittmann Tracey. It discusses real estate scams. Please read it and don't allow yourself to become a victim.
5 Real Estate Scams You Need to Know About
Don't be duped by mortgage fraud. Here are a few common scams and the red flags you should look for in a transaction.
By Melissa Dittmann Tracey
Mortgage fraud is pervasive: An estimated $4 billion to $6 billion in annual losses result from mortgage fraud, according to FBI reports. “An entire community can be damaged by mortgage fraud,” says Rachel Dollar, a lawyer from Santa Rosa, Calif., and editor of the Mortgage Fraud Blog. Mortgage fraud can lead to a spike in foreclosures, home values plummeting, and lenders raising their rates and fees to recover losses.
The crimes are often complex, involving several parties and occurring over multiple transactions. To protect you and your clients, educate yourself about mortgage fraud and be on guard for any warning signs in a transaction.
1. The Foreclosure Rescue Scheme
The Scam: “Rescuers” promise cash-strapped home owners that they can save their home from foreclosure. The rescue, which involves paying upfront fees, can take multiple forms, such as the perpetrator obtaining a new loan on behalf of the owner or by having the owner sign over the home’s deed and then rent the home until they can repurchase it. Eventually, the home owner loses the home, either to foreclosure or the fictitious rescue company.
Red Flags: With foreclosure rescue programs, borrowers are often advised to sign over the title of their house to a third party, become renters of their home, not contact their lender, or send mortgage payments to a third party, according to Fannie Mae, which provides fact sheets on mortgage fraud.
2. Loan Documentation Fraud
The Scam: This fraud involves numerous schemes in which a borrower provides inaccurate financial information — such as about their income, assets, and liabilities — or employment status in order to qualify for a loan with lower rates and more favorable terms. Occupancy fraud is one growing area: Borrowers say they plan to live in the property when they actually intend to rent it.
Red Flags: Documentation may raise suspicion if the employer’s address is shown as a post office box, accumulation of assets compared to the person’s income appears too high or low, the new house is too small to accommodate occupants, the person has no credit history, or the application is unsigned or undated, according to Fannie Mae.
3. Appraisal Fraud
The Scam: A faulty appraisal — saying a property is worth more than what it really is — is connected to many types of mortgage fraud. It entails manipulating or overstating comparables, market values, or property characteristics in order to obtain a higher appraisal. The higher property appraisal, which generates false equity, is done by falsifying an appraisal document or using an appraiser accomplice to obtain the higher value.
Red Flags: Be skeptical of appraisals that are dated prior to the sales contract, list comparable sales that do not contain similarities to the property or are outside the neighborhood, the owner is not the seller listed on the contract or the title, or a third party participating in the transaction orders the appraisal, Freddie Mac warns.
4. Illegal Property Flipping
The Scam: This entails purchasing properties and reselling them at inflated prices. These scams usually involve faulty appraisals and inaccurate loan documents. The property is then refinanced or resold immediately after purchase for an inflated value. The home is purchased at a higher price, often by straw buyers working with the “flipper,” and eventually falls into foreclosure.
Red Flags: Some key things to look for are rapid refinancing of a property; the seller recently having acquired the title or acquiring the title concurrent with the transaction; an appraisal that comes in too high; a property that was recently in foreclosure being purchased at a much lower price than its sales price; or the owner listed on the appraisal and title not matching the seller on the sales contract, according to Fannie Mae.
5. Short Sales Schemes
The Scam: Borrowers owe more than the current value of their home so they fake financial hardship and no longer make their mortgage payments. An accomplice of the borrower then submits a low offer to purchase the property in a short sale agreement. The lender agrees to the short sale, unaware that it was premeditated. The property, after being purchased at the reduced price, is then often resold at the home’s actual value for profit.
Red Flags: The borrower suddenly defaults on the mortgage with no workout discussions with the lender, an immediate offer is made to a lender at a short sale price, the short sale offer is less than current market value, or a cash back is offered at closing to the delinquent borrower (disguised as “repairs” or other payouts, for example) and is not disclosed to the lender, according to Fannie Mae.
You can report instances of suspected mortgage fraud to www.Stopfraud.gov.
Melissa Dittmann Tracey is the multimedia Web producer of REALTOR® magazine. She can be reached at mtracey@realtors.org.
Wednesday, July 7, 2010
Do YOU Understand the FHA Loan?
7 Things All Borrowers Should Know About FHA Loans
RISMEDIA, July 1, 2010--FHA Pros, LLC, a national FHA condo approval service, has developed a list of facts speaking to the top misconceptions associated with FHA loans in order to help home buyers better navigate an already confusing market. FHA loans are mortgages issued by qualified lenders and insured by the Federal Housing Administration (FHA).
“We have seen home buyer interest in FHA loans go from practically zero three years ago to upwards of 87 percent today,” said Christopher Gardner, founder and president of FHA Pros, LLC. “Despite this rapid rise in popularity, many buyers still do not fully understand the benefits of these loans, and we believe it’s time to change that.”
1. FHA Loans Are Not Only For Lower-Income Borrowers. FHA loans are available to everyone. In fact, even Bill Gates can get one. There is no maximum income restriction associated with FHA loans. Borrowers do need to substantiate income and assets by submitting proper documentation. This requirement ensures that borrowers are well-vetted and truly able to afford their future homes.
2. FHA Loans Are Not Only For First-Time Buyers. Many people believe FHA loans are available only to first-time homebuyers. This is not the case. Whether borrowers are making their first home purchase or their fifth, they can look to FHA loans as a home financing option.
3. FHA Loans Are Not Just Small Loans; In Fact, Loan Amounts Can Be As High As Almost $800,000. The government recently raised the maximum loan amount from its original cap of $362,790 to $793,750 as a way to help stabilize the housing market. The amount a buyer can borrow varies from county to county. Later this summer, condo buyers interested in FHA loans can visit www.checkfhaapproval.com to instantly identify FHA-approved condo associations and review maximum loan amounts for a given location.
4. FHA Loans Are Not Affiliated With The Section 8 Housing Program. While both programs are administered by the U.S. Department of Housing and Urban Development (HUD), FHA loans have nothing to do with low-income subsidized housing. FHA loans are simply mortgages insured by FHA. This insurance provided by the federal government allows lenders to lend more freely by assuring them that they will be repaid in the event of default. Most traditional lenders, including Wells Fargo & Co., JP Morgan Chase and Citigroup are able to provide FHA loans to their customers.
5. FHA Loans Are Often More Affordable Than Conventional Loans. While FHA loans typically offer the same interest rates as other loans, borrowers benefit from a much lower down payment of as low as 3.5 percent.
6. FHA-Approved Condo Developments Are More Desirable To Buyers. With 87 percent of home buyers indicating that they plan to use FHA loans, condo associations that are not FHA approved are missing out on a significant pool of prospective buyers. Under rules in place since February 2010, an entire condominium development must now apply to HUD and be granted FHA approval before a buyer can purchase a unit in an association with an FHA loan or before an existing unit owner can refinance into an FHA loan.
Due to the general unwillingness of today’s lenders to extend credit with respect to conventional loans, many borrowers find that FHA is their best bet. Lenders don’t mind lending when the federal government (FHA) assures them of repayment.
Homeowners associations (HOAs) should note that although FHA-insured mortgages might be easier to obtain, they are not “risky” loans, due in large part to the strict “full documentation” requirements placed on borrowers.
Individual buyers or sellers can initiate the approval process or current owners can encourage their HOA to apply. More information about the FHA- approval process is available at www.getfhaapproval.com.
7. FHA Loans Are Assumable. In addition to lower down-payment and credit-qualifying requirements as compared to conventional loans, FHA loans are assumable. This means that when a seller with an FHA loan sells his or her property, the loan and its financing terms (interest rate) can be transferred to the new buyer. This unique feature will certainly make a property more valuable in times of rising interest rates.
“Now, more than ever, buyers and sellers need to understand the options available to them when it comes time to buy a home,” continued Gardner. “At FHA Pros we have worked with countless HOAs, attorneys and individuals to easily and efficiently navigate the historically tricky FHA-approval process.”
RISMEDIA, July 1, 2010--FHA Pros, LLC, a national FHA condo approval service, has developed a list of facts speaking to the top misconceptions associated with FHA loans in order to help home buyers better navigate an already confusing market. FHA loans are mortgages issued by qualified lenders and insured by the Federal Housing Administration (FHA).
“We have seen home buyer interest in FHA loans go from practically zero three years ago to upwards of 87 percent today,” said Christopher Gardner, founder and president of FHA Pros, LLC. “Despite this rapid rise in popularity, many buyers still do not fully understand the benefits of these loans, and we believe it’s time to change that.”
1. FHA Loans Are Not Only For Lower-Income Borrowers. FHA loans are available to everyone. In fact, even Bill Gates can get one. There is no maximum income restriction associated with FHA loans. Borrowers do need to substantiate income and assets by submitting proper documentation. This requirement ensures that borrowers are well-vetted and truly able to afford their future homes.
2. FHA Loans Are Not Only For First-Time Buyers. Many people believe FHA loans are available only to first-time homebuyers. This is not the case. Whether borrowers are making their first home purchase or their fifth, they can look to FHA loans as a home financing option.
3. FHA Loans Are Not Just Small Loans; In Fact, Loan Amounts Can Be As High As Almost $800,000. The government recently raised the maximum loan amount from its original cap of $362,790 to $793,750 as a way to help stabilize the housing market. The amount a buyer can borrow varies from county to county. Later this summer, condo buyers interested in FHA loans can visit www.checkfhaapproval.com to instantly identify FHA-approved condo associations and review maximum loan amounts for a given location.
4. FHA Loans Are Not Affiliated With The Section 8 Housing Program. While both programs are administered by the U.S. Department of Housing and Urban Development (HUD), FHA loans have nothing to do with low-income subsidized housing. FHA loans are simply mortgages insured by FHA. This insurance provided by the federal government allows lenders to lend more freely by assuring them that they will be repaid in the event of default. Most traditional lenders, including Wells Fargo & Co., JP Morgan Chase and Citigroup are able to provide FHA loans to their customers.
5. FHA Loans Are Often More Affordable Than Conventional Loans. While FHA loans typically offer the same interest rates as other loans, borrowers benefit from a much lower down payment of as low as 3.5 percent.
6. FHA-Approved Condo Developments Are More Desirable To Buyers. With 87 percent of home buyers indicating that they plan to use FHA loans, condo associations that are not FHA approved are missing out on a significant pool of prospective buyers. Under rules in place since February 2010, an entire condominium development must now apply to HUD and be granted FHA approval before a buyer can purchase a unit in an association with an FHA loan or before an existing unit owner can refinance into an FHA loan.
Due to the general unwillingness of today’s lenders to extend credit with respect to conventional loans, many borrowers find that FHA is their best bet. Lenders don’t mind lending when the federal government (FHA) assures them of repayment.
Homeowners associations (HOAs) should note that although FHA-insured mortgages might be easier to obtain, they are not “risky” loans, due in large part to the strict “full documentation” requirements placed on borrowers.
Individual buyers or sellers can initiate the approval process or current owners can encourage their HOA to apply. More information about the FHA- approval process is available at www.getfhaapproval.com.
7. FHA Loans Are Assumable. In addition to lower down-payment and credit-qualifying requirements as compared to conventional loans, FHA loans are assumable. This means that when a seller with an FHA loan sells his or her property, the loan and its financing terms (interest rate) can be transferred to the new buyer. This unique feature will certainly make a property more valuable in times of rising interest rates.
“Now, more than ever, buyers and sellers need to understand the options available to them when it comes time to buy a home,” continued Gardner. “At FHA Pros we have worked with countless HOAs, attorneys and individuals to easily and efficiently navigate the historically tricky FHA-approval process.”
Tuesday, July 6, 2010
Hot Summer in Central Virginia
Hey folks,
It is turning out to be another hot one here in Central Virginia. The "Weather Do-Dad on my screen says 98, and its only 3:15 in the afternoon. Now you know why I am in front of my computer......it's cool in here (at least until the electric bill comes). My dog doesn't even want to go out (talk about Dog Days). The weather here has turned hot early this year. Usually 100 degree days wait until late July, but we have had 5 days at 100 or better and already set 3 new high temps. We also need rain, as we got about 1/2 inch in June.
No, I'm not looking for a job at the Weather Channel, and Yes, this is a real estate blog!!
So, interest rates are BELOW 5% (depending on your credit score) and according to one of the sources I watch, housing prices, across the country, are down by an average of 24% from the price peak. I don't feel they are down that much here in Chesterfield County, but probably in the 15-18% range.
Any way you look at it, now is a great time to buy. The only problem we seem to be having is getting the present house sold, so they can buy another one.
When you listen to statistics, approximately 1/7 of the population (which comes out to about 14.28%) moves every year. I did my own study and pulled 8 neighborhoods in my area, covering from starter home subdivisions to executive type subdivisions. By getting the number of homes in each subdivision, and dividing by the number of sales in the last 12 months, I came up with the percentage of homes sold for that subdivision.
The lowest percentage was 2.70% in a neighborhood that sells around$180,000-$225,000. And that was the subdivision I used to live in (12 years ago). The highest percentage was in the smallest subdivision, with about the same price homes, at 7.14%. The other 6 subdivisions ran from 3.44% to 4.31%. That comes out about 4.15% for all of them. I think we must be at the bottom....at least I hope so.
For those of you thinking about buying or selling a home in the future, I want you to stop before signing that listing agreement or that contract. I'm sure your parents told you the following, sometime in your life! Don't sign ANYTHING that has blanks in it. Make sure all the blanks are filled in, either with a number, words or a line. Remember, a blank could be filled in later. You would be surprised at the "lousy" written listing agreements and contracts I have seen over the years, even from experienced agents.
Be careful out there!!!!
Oh, one last thing. If you would like a Lowe's $10 off coupon, shoot me an email and I will put you on the list to get one!
It is turning out to be another hot one here in Central Virginia. The "Weather Do-Dad on my screen says 98, and its only 3:15 in the afternoon. Now you know why I am in front of my computer......it's cool in here (at least until the electric bill comes). My dog doesn't even want to go out (talk about Dog Days). The weather here has turned hot early this year. Usually 100 degree days wait until late July, but we have had 5 days at 100 or better and already set 3 new high temps. We also need rain, as we got about 1/2 inch in June.
No, I'm not looking for a job at the Weather Channel, and Yes, this is a real estate blog!!
So, interest rates are BELOW 5% (depending on your credit score) and according to one of the sources I watch, housing prices, across the country, are down by an average of 24% from the price peak. I don't feel they are down that much here in Chesterfield County, but probably in the 15-18% range.
Any way you look at it, now is a great time to buy. The only problem we seem to be having is getting the present house sold, so they can buy another one.
When you listen to statistics, approximately 1/7 of the population (which comes out to about 14.28%) moves every year. I did my own study and pulled 8 neighborhoods in my area, covering from starter home subdivisions to executive type subdivisions. By getting the number of homes in each subdivision, and dividing by the number of sales in the last 12 months, I came up with the percentage of homes sold for that subdivision.
The lowest percentage was 2.70% in a neighborhood that sells around$180,000-$225,000. And that was the subdivision I used to live in (12 years ago). The highest percentage was in the smallest subdivision, with about the same price homes, at 7.14%. The other 6 subdivisions ran from 3.44% to 4.31%. That comes out about 4.15% for all of them. I think we must be at the bottom....at least I hope so.
For those of you thinking about buying or selling a home in the future, I want you to stop before signing that listing agreement or that contract. I'm sure your parents told you the following, sometime in your life! Don't sign ANYTHING that has blanks in it. Make sure all the blanks are filled in, either with a number, words or a line. Remember, a blank could be filled in later. You would be surprised at the "lousy" written listing agreements and contracts I have seen over the years, even from experienced agents.
Be careful out there!!!!
Oh, one last thing. If you would like a Lowe's $10 off coupon, shoot me an email and I will put you on the list to get one!
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