When is the right time to talk to a mortgage lender? when you have the first thought of wanting to buy a home. It is a great time to buy rather than rent. with such low interest rates & property prices where they are, you can usually own with a monthly mortgage payment lower than rent you'd pay on a similar piece of property. Your real estate broker can offer names of reputable lenders so you can be properly pre-qualified so you know the top purchase price to keep you in your comfort zone. Short sale, foreclosure, traditional non-distress sales...all options in today 's real estate market. For more info on short sales & debt forgiveness, contact the author of this Blog; Kay Russell, Broker, Keller Williams Fox Valley Realty. http://KayRussellRealty.com
Showing posts with label real estate. Show all posts
Showing posts with label real estate. Show all posts
Friday, August 17, 2012
Tuesday, July 13, 2010
Short Sales Gone Wild!
We've been really busy working the Short Sale market. Crazy! Today I just got an offer in on another property that is going the Short Sale route. Luckily, I have an experienced short sale negotiating team in place which makes the whole process efficient and as smooth as possible. We have a high success rate. You may ask, though, "What is a short sale?"
In the past when people have purchased a home, especially say between 2005 and 2007, they paid a price according to the market at that time. That buyer may also have taken advantage of getting a 100% financed loan, which many lenders were offering. The thought behind that was that since property values kept going up, a buyer could purchase a property, hold it for a few years, then sell it and realize a profit, pay off that 100% loan and still be ok, ready to move on to the next purchase. Well, then property values dropped. A lot. Then, as the economy eroded and people lost jobs, or lost income, or perhaps health issues came up...any number of hardships which caused those homeowners to be unable to keep up with their mortgage payments, another issue came up and that was how to get out from under the mortgage they could no longer afford. Welcome to the world of short sales.
If a homeowner truly can prove a hardship and the value of their home has dropped beneath what they owe for it, and they are falling behind on their payments, before the homeowner loses the house to foreclosure we, in real estate, can try and help them qualify for a short sale, market the home, get that homeowner out from under that heavy burden. Many people who have had to go the short sale route had previously tried to get a loan modification done but were unsuccessful for a variety of reasons. A short sale on your record is not as damaging as a foreclosure or a bankruptcy. We can help the homeowner determine if they might qualify to do a short sale.
Where did the phrase short sale come from? If the property is selling for less than is owed to the bank, and the bank agrees to let that happen, then the bank is selling themselves short....or it is a SHORT SALE.
In the past when people have purchased a home, especially say between 2005 and 2007, they paid a price according to the market at that time. That buyer may also have taken advantage of getting a 100% financed loan, which many lenders were offering. The thought behind that was that since property values kept going up, a buyer could purchase a property, hold it for a few years, then sell it and realize a profit, pay off that 100% loan and still be ok, ready to move on to the next purchase. Well, then property values dropped. A lot. Then, as the economy eroded and people lost jobs, or lost income, or perhaps health issues came up...any number of hardships which caused those homeowners to be unable to keep up with their mortgage payments, another issue came up and that was how to get out from under the mortgage they could no longer afford. Welcome to the world of short sales.
If a homeowner truly can prove a hardship and the value of their home has dropped beneath what they owe for it, and they are falling behind on their payments, before the homeowner loses the house to foreclosure we, in real estate, can try and help them qualify for a short sale, market the home, get that homeowner out from under that heavy burden. Many people who have had to go the short sale route had previously tried to get a loan modification done but were unsuccessful for a variety of reasons. A short sale on your record is not as damaging as a foreclosure or a bankruptcy. We can help the homeowner determine if they might qualify to do a short sale.
Where did the phrase short sale come from? If the property is selling for less than is owed to the bank, and the bank agrees to let that happen, then the bank is selling themselves short....or it is a SHORT SALE.
Monday, May 17, 2010
Ever Feel Like You Can't Outrun The Hunt?
A cousin of mine recently sent me a link to a video that spoke to me in a way making me want to share this. If you or anyone you know has ever felt like they just couldn't keep up, they could not outrun the hunter, or felt really "under the gun" then you may appreciate this video. It seems like these days every life is influenced in some way by the "interesting" economy we've endured these past few years. I know I can relate to the penguin. Can you? If this video speaks to you in any special way that you want to share, please reach out - russellgroup1@yahoo.com or 630-513-3810. Be sure to watch until the very end - you won't believe the outcome!!! I guess the message is "Never give up, and just keep on swimming!"....and to be able to take a big jump at the end could be quite helpful too :) (If link does not appear highlighted, right click to highlight and Google to find. It will come right up.)
http://www.dvorak.org/blog/2008/11/22/lucky-penguin-escapes-killer-whales/
http://www.dvorak.org/blog/2008/11/22/lucky-penguin-escapes-killer-whales/
Thursday, March 11, 2010
What's the Mood of the Market
A FRIEND ASKED ME A QUESTION ON HIS BROTHER'S BEHALF. HIS BROTHER IS LIVING IN A NEW HOME HE HAD BUILT A FEW YEARS AGO AND WANTS TO MOVE. HIS REAL ESTATE AGENT (Not Me) HAS SUGGESTED THAT THE BOTTOM IS GOING TO FALL OUT OF THE MARKET AND PERHAPS HE SHOULD TAKE HIS HOME OFF THE MARKET AND SELL IT SOMETIME DOWN THE ROAD. THIS QUESTION PERTAINS TO SO MANY PEOPLE, I AM POSTING MY RESPONSE IN MY BLOG:
That's quite a crystal ball that agent has, and I hope they are not correct. Although that dramatic of a decline is not something I've heard about or am aware of we have perhaps learned these past few years to be less surprised by such dramatic changes. The market here is expected to take another dip, but the dip we've taken so far has been down about 26%-28%, depending on which economist you follow, and I am unaware of another anticipated free fall like that. If you follow Case-Shiller Indices you will see that there was a tiny increase about 6 mos ago and another decline about 3 mos ago in the Chicagoland market with another tiny decline anticipated by Nov 2010. After what we've been through that one won't even feel like a pinch. There are many other factors, however, that I would need to be in tune with to offer any more of an opinion. For instance, in your brother's subdivision do they have an unusually large number of foreclosures? If so, that is wreaking havoc with getting loans financed even if you are fortunate and have a buyer. In August we will see what kind of impact all the commercial loans coming due has on the market. There are a huge number of commercial balloons coming due which could be candidates of foreclosure and that could give the market another hiccup. Have I put you to sleep yet? I would suggest to your brother that if he needs to sell for financial reasons like a majority of people out there today (can't afford the house anymore for whatever reason, be it change in financial circumstance or whatever) that he needs to speak with someone who is experienced in handling short sales. Be sure to tell him that won't hurt his life or his credit like a foreclosure or bankruptcy will. People who are hurting right now may tend to sit idly by and hope things will improve. That is my hope too, but if there is a need for financial relief this is not a time to be ashamed or hard on yourself. It's time to ask for help, to ask for guidance on how to move through the tricky waters of finding your way to the other side of debt and disappointment. I would be happy to either help out or to recommend someone in whom I have confidence in this regard. We actually have a short sale team here at Keller Williams Fox Valley so we are able to offer special, experienced attention to ushering a homeowner and their property through the process. We have an extraordinary success rate of getting them done and allowing the owner to move along with life. If, however, your brother is not in a financially distressed situation, and just is wanting to move for the fun of it, then he may want to either reconsider and stay put until things level out a little (think maybe by 2012 we'll feel a lot better) or if he's really got the "I've got to move bug" bad then maybe he may want to consider renting his house out if he can do so for enough money to pay for the mortgage, and rent wherever he's going. Lots of options. Please let me know if I can be of help. I can be reached at 630-513-3810 at my office at Keller Williams Fox Valley Realty. http://GoRussellRealtor.com for more details on the market plus more
That's quite a crystal ball that agent has, and I hope they are not correct. Although that dramatic of a decline is not something I've heard about or am aware of we have perhaps learned these past few years to be less surprised by such dramatic changes. The market here is expected to take another dip, but the dip we've taken so far has been down about 26%-28%, depending on which economist you follow, and I am unaware of another anticipated free fall like that. If you follow Case-Shiller Indices you will see that there was a tiny increase about 6 mos ago and another decline about 3 mos ago in the Chicagoland market with another tiny decline anticipated by Nov 2010. After what we've been through that one won't even feel like a pinch. There are many other factors, however, that I would need to be in tune with to offer any more of an opinion. For instance, in your brother's subdivision do they have an unusually large number of foreclosures? If so, that is wreaking havoc with getting loans financed even if you are fortunate and have a buyer. In August we will see what kind of impact all the commercial loans coming due has on the market. There are a huge number of commercial balloons coming due which could be candidates of foreclosure and that could give the market another hiccup. Have I put you to sleep yet? I would suggest to your brother that if he needs to sell for financial reasons like a majority of people out there today (can't afford the house anymore for whatever reason, be it change in financial circumstance or whatever) that he needs to speak with someone who is experienced in handling short sales. Be sure to tell him that won't hurt his life or his credit like a foreclosure or bankruptcy will. People who are hurting right now may tend to sit idly by and hope things will improve. That is my hope too, but if there is a need for financial relief this is not a time to be ashamed or hard on yourself. It's time to ask for help, to ask for guidance on how to move through the tricky waters of finding your way to the other side of debt and disappointment. I would be happy to either help out or to recommend someone in whom I have confidence in this regard. We actually have a short sale team here at Keller Williams Fox Valley so we are able to offer special, experienced attention to ushering a homeowner and their property through the process. We have an extraordinary success rate of getting them done and allowing the owner to move along with life. If, however, your brother is not in a financially distressed situation, and just is wanting to move for the fun of it, then he may want to either reconsider and stay put until things level out a little (think maybe by 2012 we'll feel a lot better) or if he's really got the "I've got to move bug" bad then maybe he may want to consider renting his house out if he can do so for enough money to pay for the mortgage, and rent wherever he's going. Lots of options. Please let me know if I can be of help. I can be reached at 630-513-3810 at my office at Keller Williams Fox Valley Realty. http://GoRussellRealtor.com for more details on the market plus more
Sunday, February 28, 2010
Why Is Your House Still On The Market?
This is the question at the top of many homeowners' minds right now. Why has my home not sold? There could be any number of answers for this question, but it likely has to do with a similar thread of concern to many people. It used to be safe to say it was either price, condition, or location. These days, while having a home in good condition in a good location is a big plus, price is the chief concern. The economic indicators are showing, though, that the market is swinging ever so slowly and gently into a more balanced market. This means we are seeing signs of the market moving away from being such an extreme buyer's market into a more balanced buyer/seller market. What tips us off to this condition? When the amount of inventory that is available is coming closer to 6 months worth of inventory rather than the 8,11,and 16 months of inventory we have had these past few years. Are we out of the woods yet? NO! Sorry, all you wonderful homeowners who are hoping for a different answer. We still need to have a little more patience in this regard. HOWEVER, this is still a great time to buy property. Interest rates are still fantastic. Prices on homes are lower than we've seen for many years. There are wonderful properties available. For people who are wanting to sell, this is a perfectly fine time to get things going. For people who are wanting to buy, this is still an amazing time to do so. If you want a more personalized approach to how YOU can best maneuver in this market please feel free to get in touch with me Kay Russell at Keller Williams Fox Valley Realty 630-513-3810. http://GoRussellRealtor.com for more information plus more interesting links
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