Low Mortgage Rates Will Help Foreclosures – This Is How

February 7, 2009

According to the Treasury Department over 420,000 home owners mortgages are going to adjust this year. These are home owners who purchased homes with adjustable rate mortgages, some of whom tried to make a quick buck off the real estate boom. Others purchased their home using a hybrid mortgage so they could afford a larger home in hopes they would be able to refinance in a couple years to a lower rate.

Well, their time has come and this year their rates will adjust. The good news for many is that interest rates are at an all time low. So low in fact they have not been here for more than 37 years. This is good news for these home owners who have these adjustable rates, it is also good news for the real estate economy os a whole. A large part of the homes that hit the foreclosure auctions over the last couple of years have been due to adjustable rate mortgages.

Mortgage rates what were at 8 percent were due to adjust to almost 12 percent this year. Now with the low mortgage rates they will increase up to 9 percent. This adjustment will still increase the monthly mortgage payment for the home owner but this is a much more manageable increase than a 12 percent interest rate would create.

The larger issue is that home values have decrease dramatically over the last couple of years. This mean home owners are not able to refinance their homes because they owe more on their mortgage than what their house is worth. This is a very large issue that we will continue to see in the real estate arena for quite some time.

The only current fix for home owners in this situation is to sell their house through a short sale. A short sale is a bank approved home selling option that lets you sell your home for less than your mortgage. Banks are willing to allow a short sale on homes that have negative equity, the home owner has some sort of hard ship, and the end buyer is able to purchase the home.

Selling real estate in this economy is directly related to interest rates. It is possible the new government that took office in february will have some sort of plan for home owners needing to sell their house with negative equity, but there is no guarantee any plan will work. If you need to sell your house and have no equity I suggest selling your house as a short sale. It is better than a foreclosure and can get you out of your house and on with your life.


7,500 Tax Credit For New Home Buyers In Stimulus Plan

January 29, 2009

Part of new president Obamas 819 billion dollar stimulus package includes new tax credits for first time home buyers. The 7,500 tax credit applies to any person purchasing a new home for primary residence only, and who has not owned a home in the last three years.

This all may see familiar as there is already a tax credit for first time home buyers in place that was created as part of the Housing Recovery Act passed in the summer of 2007. The stimulus plan simply changes the requirements of the tax credit. Now the home owner does not have to pay any of the tax credit back, as before they had to pay it back over 15 years.

So the question is, will this tax credit bring home buyers into the market and start to decrease the inventory? My simple answer is it will help, but it is not the shining bullet that will end all the doom and gloom of the real estate market. My main concern is that it is only eligible for people who have not owned a home for the last three years. This will almost undoubtedly target young home buyers who can afford only the lower houses priced in the bottom of the market.

The other main concern is that people still have an over all concern with real estate values going down in the near future. Smart people are not going to buy a house when the real estate market is going down in the near future, if they do not have to buy. It is different if they are starting a family, have a steady job, and feel comfortable with their local real estate market coming back in the next couple of years.

So, as housing prices continue to slide across the nation and the number of homes for sale increase, lets take our hats off to our new president proposing a plan to help the real estate market. I hope that it does not stop here but at least we have someone who understands our national and global economic situation and is willing to risk his reputation to help average every day people.

As always, if you need to sell your house fast because of foreclosure, loss of your job, being transfered, divorce or any other reason, the fastest way to sell your house is to contact a local home buyer in your area. They can give you a free offer for your house with no obligation that you have to accept. They are still buying houses because they are able to hold on to properties for long term investments.

Selling Real Estate In This Real Estate Market Can Be Hard

January 26, 2009

Selling real estate is always a topic of interest for any home owner. The average American will sell a house every five to seven years. Given a 90 year life expectancy and assuming you buy your first house at age 30. You can expect to selling 8 to 12 houses in your life time.

When it comes to selling a home it can be a very hectic and emotional time. There is a lot of money, memories and family history involved with selling a home. That is why it is best to take an outsider approach to selling real estate. Try to shake off the emotions and think like a potential buyer looking for a new home.

There are typically only 3 ways to sell real estate and some will leave you with more money and create a faster sale than others. There are advantages and disadvantages to each type of home selling process so chose the best option for your particular home selling situation.

Sell your house fast with out a real estate agent
One of the quickest ways to sell real estate is to contact a local real estate investor or home buyer in your area and receive an offer on your house. These real estate professionals exist in every major metropolitan area across the United States and make a living off of investing in real estate.

There is a myth that all real estate investors are out to make a quick buck and take advantage of home owners. Just like any profession there are reputable home buyers and there are dishonest ones. The truth is, real estate investors are a great asset to any home seller.

Most know more about real estate than a typical real estate agent. They are familiar with short sales, helping home owners avoid foreclosure, lease options, rent to own programs, and best of all most can pay cash and create a quick close on your house.

How can it cost you less to sell your home to a real estate investor? Because you are selling real estate directly directly to a buyer there are no real estate agent commissions involved which is typically 6 percent of your sale value. This can add up to tens of thousands of dollars. Instead of paying a real estate agent commissions you are giving some of that money in equity to the new home buyer or investor.

Another awesome advantage of selling your real estate to a local home buyer is the over all home selling process. Through any typical home selling process you would have to spend thousands of dollars stagging your home for sale. You have to leave your home every time a potential home buyer wants to view your home. This can make the home selling experience even more emotional than it already is.

When you sell your house fast to a real estate investor they will buy your house as is. You do not have to spend money on fixing up your house to create curb appeal. You don’t have to leave your house every evening so people can walk through your home critiquing your home decorations. A home buyer will quickly wall through your home, ask you a few questions about the homes history and give you an offer then next day. 

So if you need to sell your house fast, consider receiving a free, confidential, no obligation offer for your house from a local home buyer. It will not cost you anything, you will receive an offer on your house, you will not have to pay any real estate commissions, and you just may receive an offer you can not refuse.  

Selling real estate for sale by owner
The next best way to keep more cash in your pocket when selling real estate is to find a home buyer yourself and skip paying real estate commissions to an agent. This avenue is not for all home sellers. Real estate agents exist because they provide value and service. However if you have extra time, energy and are up to a challenge then selling your home for sale by owner could save you big dollars at the closing table.

One disadvantage of selling your house for sale by owner is the up front costs. Instead of a realtor taking charge of the marketing of your home, you will be the main marketing avenue to get the word out. Some of the out of pocket expenses will be getting your home in great shape to sell, and marketing. The best marketing money you can spend is to pay a for sale by owner company who will list your home on the multiple listing service, MLS.

This way you have captured the same marketing a real estate agent would use. This is also the best way to get thousands of potential home buyers to know your house is for sale. You will also have to pay for signs, internet listings and some paper work.

Selling your house with the help of a real estate agent
The more traditional way to sell real estate is to go through a real estate agent. This home selling option will leave you less money at the closing table but could yield a better experience than selling your home by yourself. After all, you are hiring a professional to take care of all the home selling tasks.

Note than you will still have some out of pocket expenses and some inconvenience. A good realtor will walk through your home and put a list together of things they suggest you do to make your home sell quicker and for a higher price. You will have to pay to upgrade certain items in your house, paint new walls, take down family photos and other tasks.

Typical real estate agents charge 6 percent of the sale price of your home as a commission. So if your home sells for 200,000 the real estate commissions would be 12,000. The agent will receive this payment at the closing table so you do not have to come up with this money out of pocket.

How To Avoid Falling Into The Foreclosure Crisis

January 16, 2009

Foreclosures set yet another record this month, with the highest foreclosure rate on record. The foreclosure rate is up over 81 percent from January 2007, and over 225 percent from 2006.

Over 860,000 home owners lost their houses to foreclosure in 2007. This amounts to one out of every 50 homes in the entire nation. Think about it. If one out over every 50 people are loosing their house to foreclosure, then you have to know someone who is going through the foreclosure process.

It is clear the current process to stop the foreclosure crisis and slow the rate that people are being kicked out of their homes and to the streets is not working. The government has been trying to slow the number of foreclosures by putting money into the banking system and asking lenders to work with home owners. The system is not working.

But, there are some ways home owners can get banks to work with them and avoid foreclosure. I have spoke with many famlies from Idaho, California, Florida and Massachusetts that have all had success in stopping the bank from taking their home. Some of these families refinanced because they have equity, some were able to sell their house below what their mortgage balance was, and some had their payment lowered by the mortgage company.

By far the best way to avoid foreclosure is to sell your house. The process can be difficult for home owners who do not know the real estate dialog and short sale process. This is why I suggest contacting a real estate professional who is experienced in purchasing homes in preforeclosure and having them work with the bank to sell your home as a short sale.

A short sale is when the bank allows you to sell your house to someone else for a price that is lower than your mortgage. Banks allow this because the foreclosure process can cost them thousands of dollars and just selling the property at a loss will save them money in the long run.

So help your fellow neighbors, friends, and family who may be in a situation where they need to halt a foreclosure. Tell them to get a professional who will work with the bank to buy their house fast. They will avoid a foreclosure on their credit and be able to sell their house.

This is by far the best way to avoid foreclosure, keep your credit semi clean, and put the bad memories of foreclosure behind you. There are home buyers who specialize in helping home owners through the foreclosure process while avoiding foreclosure. These real estate professionals are experienced in mortgage laws and are honest hard working individuals.

When Will Real Estate Recover? Will Real Estate Recover Soon?

December 27, 2008

As 2008 is coming to a close many american home owners are asking a few real estate questions. When will real estate recover to prerecesion times? When will I be able to sell my house for a profit and is 2009 the year home values will start to increase?

Since the peak in real estate prices and home sales in summer of 2005 many home owners have been loosing equity in their home. It seems each month is another indicator that real estate prices are not increasing and foreclosures continue to increase. But with each month that goes by, we are one step closer to hitting the bottom of the real estate market.

Many factors point to the bottom of the real estate market, on a national level hitting bottom in 2009. There are a few major developments that bring light to a dark alley when thinking about the over all real estate market in 2009.

One of the largest indicators that home values will start to increase this next year is the inventory of homes on the market. Last month new construction for homes was at 730,000 its lowest point since 1975. In almost all the major metro areas across the nation home inventories are starting to decrease which will increase home prices. See your local area inventories at housing tracker.

Recent decrease in foreclosure fillings due to the government help will also play a large role in real estate prices hitting bottom this next year. which the new president Obama stepping into office at the end of January a new light and vision for real estate and america will start to take place. President Obama has shown interest in solving the housing market issues because he is aware that housing is vital to the Unites States economy.

So if you have a home that you are living in and are waiting for real estate to recover, cross your fingers that 2009 will bring a new year and recovering home prices. I am optimistic that we are near a bottom of the market and things will stabilize in the summer or second quarter of this next year.

Always remember that real estate is a local market and each area of the nation is different. Some parts of the nation are actually seeing increases in home prices this year. Just another reminder that you need to seek professional advice when buying or selling real estate. You need to get accurate new data, especially in a changing market like we have today.

Lowest Mortgage Rates Since 1971!

December 18, 2008

This week marks a new low for mortgage rates. Mortgage rates are at a 37 year low. Rates have not been this low since 1971. The federal government decreased interest rates for the seventh consecutive week. This is an all out attempt to bring home buyers into the market and take some inventory off the shelf.

The thought is lower interest rates will bring home buyers out from the bushes and the side lines. It will also help the many home owners who have home equity lines of credit on their homes. HELC interest rates usually move up or down with the prime interest rates.

This week housing permit data also came out, with good news and bad. The results state November as the lowest housing permit month in history since 1975. The good news from this data is less homes being built mean some of the existing homes sitting vacant on the market will be purchased. The bad news is if home building permits are going down, it suggests local economies are struggling and decreasing as well.

It takes many trades and people to build homes. Plumbers, electricians, framers, engineers, designers, project managers, and the list goes on. With less homes being built these people have no where to work and that is not good or the economy.

So with all the bad news about the real estate market many questions come to mind. When will the real estate market find a bottom? When will we stop seeing more foreclosures across the nation? When will many of americans largest investments start seeing positive returns rather than declines in the double digits?

There is no one or two pieces of data that can lead you to the answer of when the real estate market is going to turn around. There are however a few economic factors that you can track locally to determine where your local market sits. Here are a few economic factors I suggest you track on a monthly basis. Rate of new house building permits, rate of existing homes sales, rate of foreclosures, and interest rates.

If you track these items on a monthly basis you should have a pretty good idea of when the real estate market will hit bottom, or when it does. When building permits increase, and existing homes sales increase it is a sign that better times are ahead.

For now if you are in a home that seems impossible to sell I suggest contacting a local home buyer or we buy houses representative in your area. They exist in every major city in the nation. They are not real estate agents but investors who are professional home buyers. You can talk with them at no cost and they can give you great advice about your best home selling options.

November Foreclosure Rates Down, Could This Be A Sign?

December 13, 2008

In November 2008 the foreclosure rate dropped 7 percent. Could this be the beginning of the bottom for foreclosures? Anytime you look at statistics or analyze data you get different answers depending on how much data you look at. In this instance only looking at one month, the month of November would lead you to believe that foreclosures are starting to slow. Look at 3 to 4 months of data and you will find a different answer.

One possibility of the slow down in November is the foreclosure moratorium that Fanni Mae and Freddie Mac have put on repossessions of homes and foreclosures. In an effort to keep more home owners in their homes and slow the foreclosure rate these two, now government owned companies have stopped foreclousre repossessions for a 90 day period.

over 78,000 home owners lost their homes in the month of November. This is an enormous number of people, now out on the street. This is down almost 8 percent from the month of October with over 84,000 home owners loosing their home to foreclosure.

Since the housing market took a steep dive from its peak in August of 2007 over 1 million home owners have lost their house to foreclosure. You can make a claim that many of these people over purchased and that is the reason they are loosing their homes now. The fact is not all of these people can be sub prime mortgage holders and over purchased.

Only the months ahead will let us know if the foreclosures are starting to slow. My opinion is the foreclosure rate will hold steady at an alarming rate until the government can do more to keep people in their homes. When our new american president Barrack Obama takes seat in January lets home real estate is one of the issues he tackles to get our economy back on the right track. 

In the mean time if you own real estate and need to sell your home, I suggest you find a local home buyer in your area. There are still people who are buying new homes, growing their family and starting their life. Everyone wants to own their own home, if not for a long term investment then for comfort.

Mortgage Applications Way Down After Surge

December 10, 2008

Last week a move from the federal government caused interest rates to decrease to a very low rate. Mortgage companies noticed the increase in refinances from traditional home buyers who were taking advantage of low interest rates to save cash flow ever month.

One thing you have to consider when going to refinance a home is that it is not free. It actually cost about 4 percent of the loan amount to close a refinance. This percentage is cost to pay the closing agent, loan agent or broker and possibly some taxes or closing fees.

One week after the mortgage industry saw a surge in mortgage applications for refinances, the application numbers are back to normal. The percentages went from 112 percent to 7.1 percent in one week. Refinances made up over 73 percent of the total applications.

Last month the federal government set a plan to buy 500 billion of mortgage backed securities and another 100 billion of debt issued by government sponsored financiers that have recently been taken over, Fannie Mae and Freddie Mac. This is what caused mortgage rates to decrease so dramatically. Possibly a good move by the government to bring more home buyers into the market.

After announcing the plan the 30 year fixed rate mortgages went from 6.19 percent to 5.57 percent. This small move in interest rates can save or shave thousands of dollars off of a home loan. As long as the rates stay this low, home buyers will be able to afford more home for the money. Especially if they are comparing homes from two years ago to today.

For those people who have homes that they need to sell a house and can not afford their current mortgage, the lower interest rates can help also. Many home owners have HELOCs or second mortgages on their homes. When the over all interest rates go down so does the interest rate on a home equity line of credit. As stated before this small decrease in interest rates can save hundreds of dollars each month from a mortgage payment.

Lets home the next administration tackles the foreclosure crisis head on so the housing prices stop going down. When housing prices stop decreasing and start to increase, the over all economy will start to come back to life. Home owners will not feel like they are wasting money each month, paying for a decreasing asset or liability.

Ada County Tax Assessor Wrong Again – Assessment Goes Up While Home Values Go Down?

November 26, 2008

Well, its that time of the year again. Everyone in Ada County will be receiving their tax assessment notice in the mail. When this should be the time of year spent with family, reflecting on the great memories made over the year and giving to people in need, we can not forget about the time and commitment we have to dedicate to disputing our Ada County homes tax assessed value.

It never seems to amaze me how the Ada county tax assessor gets it wrong. In fact, are we even sure he lives in the Treasure Valley? It is common knowledge that home values in the Treasure Valley and specifically Ada County and Canyon County have gone down over the last 3 years. Home values peaked in summer of 2005 and have been on a down hill slide ever since….so how come our assessed value keeps increasing!

…Because they can get away with it. It is a numbers game. They will increase the tax assessed value of thousands of home owners, make the tax assessed value dispute process grueling, confusing, and almost impossible for many, thus take more money from people like you and I, (tax payers), to pay the assessors salary.

So, What Can You Do?

Here is what the Ada County Tax Assessor States You Need To Do: “If you feel that your assessed value is higher than what your property would probably sell for on the open market, then we encourage you to submit market information to support your position. The appraiser assigned to assess your property will consider any evidence you wish to submit. Typical market information comes in the form of a realtor’s comparative market analysis, copies of independent appraisals done for sales or refinance, repair estimates or any other pertinent data”.

As you can see they specifically state that typical marked data comes from a real estate agent or a property appraisor. We all know that nothing is free in this world, so the County assumes you will not waste the time, money and energy on disputing your homes tax assessed value.

I wrote this blog not out of anger but out of frustration. Everyone knows property values have been going down over the last few years, yes even Mr. Tax Assessor knows it. 

I urge you to take the time to review your tax assessment notice. If you see that your homes value has increased you may want to file an appeal. After all, it is your money they are taking.  

Here is a link to the Ada County Filing An Appeal Page. There you will find a link to the appeal form.

If you need to receive market value information for your home please e-mail RealEstate@ExpertHomeOffers.com with your contact information and property address.


Please feel free to comment on this blog; let us know how you fee and if your assessment is over valued.

How To Sell My House In Collin County Texas

November 12, 2008

Lets face it, life is not always easy and is not always perfect. Many good people in cities like, Allen, Frisco, McKinney, Plano, Richardson, Wylie and other parts of Collin County get into financial situations which cause them to get behind on their mortgage payments. One day things were going great so you purchased a new house. A few months later you lost your job and now you can not make your mortgage payments. Now you need to sell your house in Collin County.

Situations like this happen to many people each and every day. When a life changing event like loosing your job, or going through a divorce happen, usually your house becomes a large financial burden. In fact, with the real estate market slow and buyers having trouble getting financing, your house can become a stressful, financial nightmare.

The government has been trying to stop the real estate meltdown for 2 years now with no success. Foreclosures in Collin County and other areas of the nation keep climbing at record levels and more and more homes owners are falling into financial distress because of their home.

In September 2008 there are approximately 5,000 homes for sale in Collin County. Collin County is made up of the larger populated cities like, Allen, Frisco, McKinney, Plano, Richardson, and Wylie.  Out of the 5,000 homes for sale, approximately 400 homes sold in September. At this rate of selling many people are going to have a hard time getting an offer on their home. This is why we suggest contacting a local real estate home buyer in your area. These professionals help home owners solve their real estate problems.

Local home buyers exist in every major real estate market. They have many options to help solve your financial distress. One of the best options they provide is the ability to buy your house fast so you can move on with your life. Local home buyers are honest real estate professionals who earn a living from helping people who need to sell their house quick. They are professional and highly respected people.

There are many reasons you may need to sell your house in Collin County, to stop foreclosure, finalize a divorce, loss of your job, can not make your mortgage payments, health issues, family issues, and the list goes on. If you need to sell your house to save your equity, I recommend getting a free offer from your local Texas home buyer. The service is free and you have no obligation to accept their offer.