Well things are still real good for buyers right now. But….many are forecasting the end to the “best buying period in decades”. The tax credit will end on April 30th (contract date) and most economists believe that nothing new will be coming. Interest rates have already shown signs of climbing. If you are going to buy investment property, if you are going to buy a second or vacation home, or if you are looking to buy for the first time, you have February, March and April. Sure buying after that will be fine too -but you will be giving up a substantial part of your investment opportunity.
Call or email me, I have Certified Resedential Specialists all around the country who could help you. And….if you are in San Diego, please call or email me.
Could time really be running out?
Why home sales dipped in November!
In October the pending sales index went up dramatically. Buyers were scrambling to sign contracts before the $8,000 credit program expired at the end of the month.
In November, buyer behavior was just the opposite. When Congress extended the credit through next April 30, the pressure was off. Nobody needed to rush to sign contracts.
But….November’s pending sales number was substantially above the previous year anyway! That suggests that even without the extra incentive provided by the tax credit, the home sale market is gaining strength for three basic reasons: huge pent-up demand, low prices and great financing.
The Battle of the Banks!
It is very interesting to observe the first mortgage taking a stand and trying to set the limit on the amount of cash that the second mortgages are allowed in the short sales.
The seconds are sticking tight and daring the first to foreclose. In many cases, the first is foreclosing – which helps nobody. But….the seconds are holding their ground.
The government, of course, will have to intervene shortly since the children (the banks) can’t work it out for themselves.
Keep your eyes open for illegal activity – and if you are going to do a short sell – make sure you have a pro as a Realtor. No matter where you live, I can refer you to one.
Make it great!
There is no need for anyone to go through foreclosure!
If you cannot make your mortgage payments, then you are probably in enough of a hardship for the lender to approve a short sale.
A short sale is a very positive solution to a tough situation.
Typically, the bank agrees to let you sell the home at market value and absorbs the loss. I’ve been working these very successfully for the past 2 years. Your credit report can recover very quickly.
Do Not Delay! Once you are two or three months past due, get into action. And….you don’t even have to be late.
There are many other benefits which I’d be happy to discuss with you personally. If you are outside San Diego, I can refer you to a Certified Distressed Property Expert (CDPE) in your area.
Still the time to buy!
Tuesday, the California Association of Realtors (C.A.R.) said it is extending its Mortgage Protection Program (MPP) for first-time homebuyers through December 31, 2010. Another great reason to buy now is the $8,000 first time buyer incentive from the Feds.
Interest rates are still very low, so nothing should hold you back. FHA, and VA offer very low down payments.
If you’re looking in San Diego call me, if you are looking anywhere else, I’ll get you the best Certified Residential specialist in your town!
Short Sales to continue, however banks to speed things up!
The short sale process which has been taking 120 to 180 days will take 75 to 120 days this year. The main reason is the banks now have personnel and systems in place. Bank of america, for instance, allows agents to input their short sale packages directly into a computer based system.
There will still be plenty of short sales since property values have not increased in most areas and thus many many people are upside down ( under water as it is also known).
The effect of short sales has shown to be minor on one’s credit report , especially as compared to a foreclosure or bankrupcy. In most cases, if purchase money is being shorted, the banks will not be able to go after the borrower down the road. That said it is still best to get the “full and complete settlement” language in the approval letter from the mortgagor and get advice from your accountant and attorney.
Check back frequently as I do talk about short sales frequently. Also, you will get some insights on loan modifications, foreclosure and sometimes just plain old sales and listings.
