Falling Houseing Prices Continue to Rule The Economic World

August 6, 2008

When will the falling house prices finally plateau? This question is on the lips of a number of real estate market analysts and investors who are looking for the promised turnaround in a housing sector that continues to disappoint. Although regulations are becoming more stringent in the lending market and the real estate sector has seen some overall positive trends, the big factors of foreclosures and a reticent buyer attitude has continued to make property prices fall.

Some home analysts are wondering where the bottom prices are. For millions of American homeowners, the same question is being analyzed. With a stalled real estate market, homeowners are sitting tight, waiting for the storm of failing prices to past. While they wait, their home equity is slowly sliding by and the value of their home dips more and more. Many potential home buyers have decided to wait on the sidelines rather than risk selling their home for too little of a profit. And for those individuals who are in the market for their first homes, the unsteady market has played a role for these non-homeowners as well. The ability to secure a mortgage, and establish a good rate, has proven to be trickier as the market continues to spiral downward.

Last week, the National Association of Realtors stated that the median price of homes decreased 6.1% compared to a year ago. Sales from the previous month had also fallen 2.6%, which was a higher percentage than had been previously estimated by experts.

What hope lies on the horizon for home buyers and sellers alike? Fortunately, there are major housing packages that are currently in Congress that can help to turn the situation around. A beneficial package was passed by the House last week that would boost the market by assisting first-time home buyers.

However, analysts state that there are a number of factors that could make the housing market go up or continue to fall in the future. One of these factors is foreclosures. The increased wave of foreclosures has given banks a higher inventory of these properties. In turn, the banks have become eager sellers, wanting to get their foreclosed properties off the books as quickly as possible before prices fall again. However, the surplus of motivated sellers and a stale feeling coming from the potential buyers has locked a number of potential sales. As long as the lock continues, the prices on the properties themselves continue to drop down.

Rising energy and fuel costs coupled with poor mortgage situations have been to blame for the rise in foreclosures. However, so long as this trend continues, the drop in prices will follow suit. In addition, there is the question of over-saturation. During the real estate boom years, new housing developments sprang up quickly and were bought even faster. With the halt in the housing market, however, these projects are now additional surplus with reluctant buyers, leaving these homes vacant or worse, unfinished. As long as these trends continue, the prices in properties will continue to drop until more positive steps are taken.

If you are thinking how can I sell my house fast to get out from under this large mortgage, contact your local we buy houses professional. They existing in every major metro area and will give you an offer for your home. Their service is free and there is no obligation for you to accept their offer.

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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.


Tips To Sell My House Fast

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.


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.


Celebrity Who Face Foreclosure

June 10, 2008

Evander Holyfield has recently joined the club of recent celebrities that are facing foreclosure or who have faced foreclosure in the past. His over $10 million dollar home is set to be auctioned off in Fayette County Georgia By Washington Mutual Bank on July 1st.

Mr. Holyfield is not alone in the celebrity club to see their home go to the auction block. Here is a list of other celebs who have received the nasty notice in the mail from their lenders.

Jose Canseco
Ed McMahon
Aretha Franklin
Latrell Sprewell
Mickael Jackson – NeverLand
Whitney Houston

It is always amazing to see people who have very large incomes face financial difficulty like many others in the nation. You would think with such a large bank account that these people would never face a financial problem in their life.
It just goes to show money management is more important than the number of zeros on the monthly checks you receive.


$1.7 Billion of Tax Payers Money to Stop Foreclosure Crisis

June 9, 2008

Currently, there is a bill in Congress that could change the financial futures of 500,000 homeowners. For these individuals who are facing foreclosure, the bill could have significant influence. Since the bill has already passed in the House, chances are good that the bill could go into effect, helping the financial situation of half a million homeowners facing a potential foreclosure.

The bill would allow borrowers who were struggling with their monthly mortgage bills to refinance easily. They would be able to see more affordable and more financially stable mortgage choices through the use of federal aid. They would get a mortgage that was federally guaranteed by the government.

This bill has been created to help only homeowners avoid foreclosure. If an individual is an investor or speculator, they are not eligible for help with this home financial situation. Specifically, this bill is set to help the homeowners who are doing their best to cover their mortgage payments, but falling short due to unrealistic settings, not the speculators who are trying to make more money in the real estate market.

There is a catch to the federal bill, however. If the homeowner takes advantage of the effort and aid given by the government, the homeowner will have to split any future home profits on the sale of the home in half with the government. For those homeowners who do not plan to move from the home for quite some time, this is less of an issue than for those homeowners who plan to move from the home in 3 to 5 years. Cutting the profits from the sale of the home in half can have a significant impact on the homeowners profit margins, especially since most individuals see the majority of their equity in the home they own.

There are arguments from taxpayers as well, and for good reason. The bill will cost taxpayers 1.7 billion dollars, according to the Congressional Budget Office. Although the price seems high, it could have been worse when you analyze the impact of increased foreclosures in the country. However, many taxpayers are arguing that we are having to pay for the mistakes of these individuals who took a mortgage when they were not eligible and the taxpayers are paying for the mess now. In essence, the taxpayers argue, they will be paying for the greed of the financial institutions whose unrealistic mortgages and subprime interest rates attracted the wrong individuals to purchase a home.

However, foreclosures can have a tremendously negative impact on the economy and the overall quality of life in an economy with higher foreclosures will drop significantly. Rising foreclosures erase future profits in nearby properties and in the economy overall. This bill has been created to avoid the big picture fallout that occurs when more and more foreclosures happen in the real estate market. The sacrifice is the taxpayer dollars to help alleviate whatever economic crisis would have evolved from the higher number of foreclosures. Something needs to be done to prevent more foreclosures and this bill is the band aid that is thought to alleviate and reverse the trend in foreclosures.

So the Question is, as a tax payer do you agree that we have some responsibility to help out the over 500,000 home owners who are facing foreclosure and saying, how can I sell my house fast? Are you comfortable with our tax dollars helping stop the foreclosure crisis?


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