Banks are Freezing Home Equity Lines Of Credit – Do You Need Yours To Sell Your House?

July 4, 2008

What would you do if your bank called to tell you that your home equity line of credit had been frozen or even cancelled? For most homeowners, shock would be the first emotion followed quickly by confusion.

Why would banks be pulling the line of credit from homeowners who have had no trouble paying off the loan. Banks have recently been pulling home equity lines of credit from all applicants, even those homeowners who never tapped the line of financial credit.

The number of homeowners who have been affected have been in the tens of thousands, as more and more banks are trying to stem mortgage losses. As banks are dealing with heavy losses from their subprime mortgages and additional high risk loans, the viable home equity loans are also taking a hit as the bank pulls the money before this equity credit line also becomes a problem.

Essentially, banks are trying to save their money from being lost to homes that fall into foreclosure. There are many home owners who took out lines of credit on their house when the real estate market was high. Now these some home owners are needing to sell their house but are having obvious problems finding home buyers. The first thing home owners look to for money when they can no longer afford their mortgage is the equity in their house.

In late third period of 2007, the delinquencies on HELOC mortgages increased 47 percent from the previous year. Analysts have predicted higher numbers for 2008. For this reason, banks have been responded by pulling their Home Equity Lines of Credit, most of which were in high foreclosure cites like, Las Vegas Nevada, Stockton California, Boise Idaho, Miami Florida, Houston Texas, New Jersey, and Orlando Florida.

Where are you most vulnerable to have a frozen HELOC? If you live in a housing area where prices have fallen by 10 percent or more, your property might be the prime target for a HELOC freeze. There are new lending standards which means that your HELOC will be in danger of disappearing if you bought your home with little money down, especially if you purchased your new home within the last few years.

These factors will combine to see a higher rate of foreclosures and might make your financial institution feel that they need to pull the plug on the HELOC before real money troubles begin. Whereas lenders were able to borrow as much as 100 percent of the home value in previous years, most homeowners cannot see more than 90 percent or even as high as 60 percent in some areas that have been severely hit by declines in the housing market.

If you established your HELOC a few years ago, you might be in for a surprise. Current lenders are applying the same revised standards retroactively to current HELOC owners. In order to verify your loan cap, you should contact your bank to see if your loan is at risk. If you miss a payment or have a change in your credit score, your HELOC might also be flagged for a potential freeze.

What should you do? If you are using your HELOC to finish a renovation, you can potentially pull out a lump sum in order to finish the project. You will want to only take what you need so that you do not get into harder financial troubles.

If your HELOC has already been put on hold, you can fight the decision with your financial institution. Look to see why the line was suspended and what you can do to appeal the decision. As many banks automate the process to freezing the loans, you can appeal to a person for a reverse in the decision.

If you are thinking of using your home equity line of credit to pay your mortgage while you sell your house, you might want to pull money out quick. The banks are implementing this new freeze standard nation wide so save the money they have. Your best option to sell your house fast is to get an offer from a local home buyer. These professionals are in every major city in the nation and make their living from helping people sell their house fast.

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Why Home Sellers Accept Low Price Offers

June 23, 2008

Some realtors will tell you it is a buyers market. Other times, realtors will rejoice that it is a sellers market. No matter what the season for real estate holds, one thing remains true, every buyer wants a lower price and every seller wants the highest price possible. It is possible to learn how to offer a low price on a home for the highest benefit for the buyer.

Currently, wise home sellers are not instantly rejecting offers that are coming in well below their asking price. With the number of homes on the market in their neighborhood combined with personal motivating factors to sell the home, many more offers are being entertained than in the past.

However, whenever you offer a lowball offer that is interpreted as insulting to a homeowner, you always risk offending the seller and utterly losing the transaction. How can you negotiate a low price without hurting the sellers feelings and still get a great deal? Information is key.

In order to make an aggressive offer, a smart home buyer will do his or her research. If you do your homework, you can make a savvy, lower offer that will make sense to both the buyer and the seller. In a market where the seller has the upper hand, a sellers personal motivating factors for selling, such as relocation for a job, divorce, foreclosure, combined with smart comparable data about the neighborhood can create the ideal situation for a buyer to make an offer on a home much lower than the asking price.

What are some of the risks for offering a sale price much too low without doing your research? After all, the worst they can say is no. However, if the buyer is serious about owning the property, a sale offer that is too aggressive can cause the seller to reject your offer and not deal with you. In addition, the seller might assume that the buyer is not serious about making a deal. However, with outside, unbiased data at your fingertips, the smart home buyer can make a strong argument for the price and see a higher rate of success.

Even if you believe the sale price is appropriate, there are other ways to lower the amount you put towards a home. Look for sellers who are strongly motivated to sell. For instance, job relocation or sellers who have already purchased and closed on another home. These home sellers will be more likely to entertain the idea of paying for closing costs or changing the close date for a lower price. Of course, if the home has been on the market for an extended period of time, the assumption is that the seller will be highly motivated to sell at a more flexible price. By negotiating these factors, you can see thousands drop from the bottom line of home buying.

Overall real estate conditions will be a large factor in the price you can get from your home purchase. However, it’s important to remember there are a number of other factors in addition to the market to help the home buyer to lower the price of their future home.

Many areas of the nation like Orlando Florda, Las Vegas Nevada, Boise Idaho, Austin Texas, Central New Jersey and others, are experiencing homes that stay on the market for long periods of time. If you are a home seller in this area and would like to sell your house fast, contact you local home buyer at ExpertHomeOffers.com. They buy houses fast so you can move on with your life. 


Tips To Sell My House

June 18, 2008

Although the real estate market might be a bit slow right now, there are always things you can do to speed up the sale of your home and you dont have to spend a ton of cash to make it happen. You can find small amounts of well spent cash that will turn your property into a show stopper that everybody will want to buy. You need to improve your chances of selling and get the best price possible for your new home.

If tons of cash comes to mind when you think of the word home renovations, think again. Although the big home renovation projects will cost you, there are a number of small cost choices that can have a big impact on the sale of your home. Typically, some of the most effective fix up quick tips are also the cheapest and have the biggest impact on the future sale of your home.

Stand outside in the front yard of your house facing your property. What do you see? Now pretend youve never seen the house before. What stands out? Do you have weeds? Chipped paint? A messy looking landscape system? Are there cracks in your driveway? When a potential homebuyer pulls up to your front door, they are immediately making judgments in their mind. Control that first impression judging with some lively, fresh landscaping in the front yard. Buy bright flowers or trim the hedges. If you need to clean your gutters or declutter your front yard, this manual labor can add dollars to your sale price and make it more likely to sell. Real estate agents call it curb appeal, but any savvy homeowner will just call it making a great first impression.

How does the paint currently look on the outside of your home? If you cant afford to give your entire home a new, fresh look, start on the doors and window trim. A quick new paint job in these areas can go a long way to making your home look brighter and more inviting. While you are working on the windows, be sure to clean the panes to make them sparkle. Remove any torn or old screens and make sure that the exterior lights work. Potential homebuyers could drive by in the evening to see the neighborhood and you don’t want your property to be dark and dreary.

Move onto the inside of your home. Are there any persistent smells? If you are trying to sell your home, you will want to cover up any bad smells like greasy foods, cat litter box or other troublesome odors. Many real estate agents will suggest baking cookies or bread before a visit, lighting candles before you show your home and numerous other tricks to ensure a positive smell when you future buyers walk through the door. One rule of thumb, however, is that you dont want to overwhelm them with any overpowering smells good or bad. Remember that a little bit goes a long way here.

The trick to selling your home is that you want to have a great impression from start to finish. You want it to be clean, obviously, but you also want to remember that your future buyers are experiencing your home from a variety of different perspectives.

If you need to sell your home quickly and do not have any cash to fix up your house contact your professional home buyer. You do not have to pay any money to receive an offer on your house and you have no obligation to accept the offer.


How You Are Affected By The Foreclosure Next Door

June 11, 2008

Your neighbor is facing a foreclosure. Not your problem, right. Think again. If you have a foreclosure in your neighborhood even if you are not struggling to pay the mortgage in your own home, it can spell trouble for your property. If you think the foreclosure crisis spells bad news for a number of individuals, but will have no impact on you, you are wrong. There are a number of reasons you should help your neighbor avoid foreclosure is you can.

Millions of Americans are losing their homes, but the impact is that these neighborhoods are drastically changing. If you live in a neighborhood that has seen a number of foreclosures, your property values could be at a standstill or worse dropped significantly. In addition, neighborhoods with heavy foreclosure statistics have been proven to see more vagrants, drug dealers and prostitutes as these people take advantage of the empty buildings. As more and more homes are seen to be empty, their friends pass along the word and the neighborhood will go downhill. This is just another reason for you to help your neighbor stop foreclosure.

When your neighbor has a foreclosure and the house is vacant, it is a welcome mat for vandals. Thieves love to frequent foreclosed homes, stripping copper wires, plumbing, carpet and more valuable items from the home, leaving it even more of an eyesore. All neighbors can do is watch helplessly as their neighborhood becomes less desirable to live in. In addition, broken windows and overgrown lawns send a clear signal that the neighborhood has fallen on bad times and that message will include your home. Inner city problems like graffiti and drugs will enter the empty buildings and have a stronger influence than the rest of the well meaning neighbors.

As foreclosures spike, gang activity and crime accompanies the problem hand in hand. Studies have shown that for every 1 percent increase in foreclosures, there is an associated and accompanied 2.23 percent increase in violent crime and problems. There have been numerous examples of the impact of foreclosures on such cities as the hard hit Cleveland, whose Slavic Village had troubles with foreclosures over a decade ago. Las Vegas, Jacksonville Florida, Miami Florida, Orlando Florida, Stockton California and many other area will feel the same changes.

The foreclosures from high cost loans transformed the middle class neighborhood to a series of empty eyesores, encouraging crime, vagrants and drugs. As the quality of life disappears, so do the prices on the homes, trapping existing neighbors into a lower value home in a decreasing neighborhood. More and more homeowners feel the impact of the foreclosure tidal wave.

Roughly 3 percent of all homeowners are thought to go into foreclosures by the end of 2009. However, from this small 3 percent, 43.5 percent of all homeowners will feel the impact of foreclosure crisis. This means that nearly 40 million homeowners will see their home values plummet in the next two years due to foreclosures. For each home, that is an estimated loss of 8,771 dollars. This is a significant loss and provides a definite tangible effect on the economy as many homeowners have the majority of their portfolio in the equity of their home. If the neighborhood is in a state that is more likely to experience a foreclosure, the financial depression can be even worse, making the average loss drastically higher, no matter what the other homes are doing.

So what can you do to help stop the foreclosure crisis affecting your neighborhood. The first thing you can do it talk with your neighbor openly about the issue. Let them know that you are a helping friend and are willing to help with their financial crisis. I do not mean by paying their mortgage but by finding a home buyer for their property. After all if you find a buyer the home will not go vacant and your home value will not go down.

Help your neighbor or friend who is facing foreclosure and thinking how can I sell my house, by getting them in contact with a professional real estate investor who buys houses to stop foreclosure. The fastest way to contact them is by typing the words Local Home Buyer into Google and completing some online forms. You will be connect with a local home buyer in your neighborhood that will give you a free offer on your house at no cost or obligation, so you have nothing to loose.


Hidden Cost of Buying a Foreclosure House

June 3, 2008

Most real estate investors clap their hands with delight when they see a foreclosure home that is ready to move in. After all, a well-kept foreclosure home can be the deal of the lifetime.

Right now, there are a great deal of distressed homes on the market. Foreclosures can be a great deal for homeowners how are looking to buy a house. With the rise of foreclosures on the market, more and more foreclosure opportunities are available for real estate investors and home buyers. With this increase, there are more and more properties that are catching the eyes of investors and property buyers.

However, a startling new trend is starting in the world of real estate investing. Although many consumers and potential homebuyers are interested in seeing a foreclosure, the actual sales on these foreclosures can stall. Foreclosures make consumers nervous and jittery. Although people are willing to look at the foreclosed home, they are less likely to buy it with the inability to negotiate changes or upgrades with the property.

If you are considering purchasing a foreclosure, you need to know the hidden tricks to buying the property. A foreclosed property does not allow a home inspection or negotiations. If you have a wall in the kitchen painted in bright pink, you’re stuck with it. The bank wants to get rid of the foreclosure property and if you want to negotiate, they will just go with the next consumer who is interested in the property and not negotiating.

In addition, studies have shown that nearly 70 percent of future homebuyers know there are hidden risks and costs associated with a foreclosure. Some of these negative risks include the horror of the unknown costs, having the foreclosed home lose value or losing the purchase price entirely.

When should you consider buying a foreclosed home? If you are a real estate expert with substantial construction knowledge, you can feel assured that no matter what might come your way, you can handle it on your own. When you start requesting that professionals come to your home, the cost of labor will add up, making the savings that you earned in the purchase price disappear overnight.

If you have expert assistance in the real estate market, foreclosure homes can be a great choice. With the expert advice, you are less likely to lose your investment. Also, use this real estate knowledge to your advantage when you analyze the market and neighborhood that your foreclosed property is located within. If you can analyze current and last years home values, you can determine what you can hope to earn from your investment.

Getting a home inspection on your foreclosed home is imperative. You can find and reduce a number of the hidden costs up front when you have an inspector highlight the big problems immediately. Also, if there are any unique architectural upgrades, be sure to look at those thoroughly because these structural changes can be your biggest risk in the future.

If you are gong through a foreclosure on your house and thinking house can I sell my house fast to stop foreclosure, contact http://www.ExpertHomeOffers.com

 


How Forclosures are Affecting the Rental Market – Stop Foreclosure Fast

May 31, 2008

As more and more foreclosures are being seen in the marketplace, more and more coverage is being spent on the homeowners losing their homes. However, the analysis on the impact of foreclosures shouldnt stop with the homeowners. Foreclosures have long term effects both financial and culturally. As more and more people are losing their homes, fewer individuals are able to leave their rental apartments to invest in a home of their own.

What happens to the rental market when it is saturated with former homeowners who have lost their houses to foreclosure becuase they can not sell thier house, as well as individuals who are too timid to step out to purchase their new home. And the worst case scenario of all, what happens to renters whose landlords miscalculate and lose their property and the renters lose a place to call home.

The rise in foreclosures hasnt been beneficial for renters. Although initially, it might seem as though renters have a safe enclave from the perils of foreclosure, many renters are stuck right in the middle of the dilemma. More and more individuals, couples and families have to compete for affordable, low cost rental space as a result of the foreclosure increase.

In addition, when the property they are renting from becomes a foreclosure, the individual, couple or family finds themselves suddenly homeless through no fault of their own. The emotional impact of this sudden loss of home can be tremendous. Nearly 20 percent of all foreclosure homes are investor owned rental properties. That means that one in four foreclosures involves renters who are immediately forced to move. Many of these foreclosed rental properties are occurring in low income and minority communities, influencing neighborhoods that are already dealing with economically vulnerable individuals and families.

The number of renters has increased drastically over the last year. Renters are up by nearly 1 million, which is more than four times more than the growth rate between 2003 and 2006. The demand for affordable, low cost housing has significantly increased, but the supply of these low rent homes is decreasing.

Currently, studies are showing that nearly half of all rental families are contributing 30 percent of their income to their housing, while one in every four families were putting 50 percent or more of their income towards their rent and associated costs. The economic impact of these families spending the majority of their incomes on rent cannot be underestimated. If these families were living in low cost, more affordable housing, the stability and overall economic stimulus would improve.

However, the renting landscape is not thoroughly grim. Due to a weak housing sales market, more and more homes, condos and units are being put on the market as rental properties instead of sales. While the debate still exists as to whether these rental properties offer the low cost housing options that are needed on the market, the availability of more and more rental properties assumes that the situation will be alleviated to a degree. No matter what, however, the foreclosure increase is showing an impact for renters as well as homeowners alike.

If you are an investor and own a home that you are going to loose to foreclosure you have options. There are ways you can stop foreclosure fast and save the little equity you have in your investment. To sell your house and receive a free offer for your investment property, contact your local home buyer. They exist in every major metro area and you can sell your house fast.


Sell and Rent Back My House

April 28, 2008

Lets face it, the real estate market has changes and many of you got caught with high mortgage payments and now have a house that you can not sell, or can you? When the real estate market slows, the demand for houses goes down and appreciation stops. The majority of home buyers wait on the side lines for the real estate market to come back around.

If you own a home that you can not afford then you need to sell now, not a few years from now when the home buyers decide to buy. Well know that you still do have options. One great option to sell your house now, is to sell it to a real estate investor and then rent it back. Yes some real estate professionals do buy houses and then allow the home owner to rent it back.

The sell and rent back process is fairly simple actually. If your home qualifies then you sell your house to a professional home buyer, keep living in the house, pay rent, and if you decide you want to purchase the house in the future you have the option to.

The rent back option is great for home owners who are over extended and can not afford their mortgage payment. Possibly they purchased a home and now their mortgage is adjusting and they can not afford the new payment. Just contact your local home buyer, ask them to buy your house and let you rent it back. If your home selling situation works for the real estate investor then you will have no problems.

Another great thing about the sell and rent back home selling option is that you can find out if your selling situation qualifies quickly and painlessly. All offers by professional real estate home buyers are no obligation offers which means you have nothing to loose.

Who knows, you could sell your house this month, get your finances in order and buy back your how in a few months. Like I said the process is simple and can be done quickly. Besides, when the offer is a no obligation offer, you have nothing to loose.