Things To Think (Worry) About When Buying A Home

 Things To Think (Worry) About When Buying A Home

Talking Points with Your Realtor

The Credit Crunch - Financing is not as easy to get as it used to be

                  -good credit is not enough

                  -you need at least 20% down maybe more

                  -a pre-approval does not guarantee you’ll get the loan

                  -the property may not appraise

                  -expect your lender to intrude into your personal life

                  -loan approval depends on the strength and stability of the  homeowners association (i.e.  delinquency rate,   

                     reserves, law suits etc)

Finding A Home

                  -if you like a particular home, other persons will too – you will probably face a multiple offer situation

                  -if you can’t handle frustration, don’t make an offer on a short sale

                  -narrow your search by price, size and location

                  -sometimes the information of a listing sheet is not correct

The Home Inspection

                  -expect lots of problems

                  -the seller does not have to make any repairs

                  -the seller will usually correct major problems

                  -inspectors miss things sometimes

Making An Offer and Negotiating the Price

                  -Americans hate to haggle – do you?

                  -offer about 5-8% below the fair market value & expect to 

                     compromise

                  -offers must be in writing accompanied by a deposit check

                  -make your offer contingent upon seeing a seller’s disclosure

Your Realtor

                  -has 1 important reason to do a good job – he depends on your future referrals

                  -has a life so find out his/her days off and work schedule

                  -has to follow many real estate laws & a code of ethics

                  -does not know everything about all properties but can usually find the answers to all of your questions

The Closing

                  -you’ll be a little nervous. After all, this is a big investment

                  -you get to choose the lawyer

                  -the lawyers important job is to make sure you have a clear title

                  -you will sign a lot of silly forms most of which protect the lender from being sued by you

Other Considerations

                  -real estate is local. Prices and inventory vary widely from one area to another

                  -12,474 homes sell every day

8 Alternatives to Foreclosure

Today we want to pick up the conversation with some alternatives to foreclosure. This list is just part of our overall Foreclosure Resources that are available for free on our website. 

Other Alternatives to Foreclosure

Reinstatement

A reinstatement is the simplest solution for a foreclosure, but often the most difficult to achieve. The homeowner simply pays the total amount past due (including late fees) to the lender.

Mortgage Modification

A mortgage modification involves the reduction of one of the following: the interest rate on the loan, the principal balance of the loan, the term of the loan, or any combination of these.

Deed-in-Lieu

Also known as a "friendly foreclosure," a deed-in-lieu allows the homeowner to return the property to the lender rather than go through the foreclosure process.

Forbearance

A forbearance or repayment plan involves the homeowner negotiating with the mortgage company to allow them to repay back-payments over a period of time.

Rent the Property

This option does not require lender approval, but does require the homeowner's ability to rent the house for enough money to cover the monthly mortgage payment.

Servicemembers Civil Relief Act

If a member of the military experiences financial distress due to deployment-and their debt was entered into prior to deployment-he or she may qualify for relief under the Servicemembers Civil Relief Act.

Bankruptcy

Many believe bankruptcy is a "foreclosure solution," but this is only true in some states and situations. Entering bankruptcy can be a risky and costly process. Be sure to seek the advice of a qualified bankruptcy attorney when pursuing this as an option.

Refinance

Refinancing means you will acquire a new loan based on your current credit standing. If you have already missed mortgage payments, your credit score may make it difficult to find a loan with cheaper payments. Knowing that foreclosure can be avoided gives you the ability to develop a realistic strategy to plan for a future that is both financially stable and full of hope

This was taken from the blog of Evelyn Bruder, a realtor from Las Crusis, New Mexico

A Warm Rain

Woke up this morning to get the newspaper and felt a nice warm rain almost like a summer rain. So glad I am no longer facing the cold snow in Massachusetts.

Little River Real Estate 2011 vs 2012

The good news is that real estate sales were up by 8% for homes and 25% for condos from 2011 to 2012 in Little River. But the not so good news is that sale prices continued to decline by 4.5% for homes and 7.1% for condos. For Lafayette Park, the average sale price went up slightly by almost 2%.  

 The foreclosure/short sale inventory is the main factor in the price decline. According to Realty Trac and other sources, it appears that it will take at least another year or 2 before that inventory goes down.

Little River Sales Comparison - 2011 vs 2012
	Home Sales	Average Sale Price	% Price Change
2011	225	$169,491
2012	244	$161,840	-4.51%
	Condo Sales	Average Sale Price
2011	154	$93,506
2012	192	$86,831	-7.14%
	Lafayette Park
	Sales	Average Sale Price
2011	26	$178,741
2012	33	$182,220	1.95%

Foreclosure Trends Very Different in Different Markets

http://www.kcmblog.com/2013/01/22/foreclosure-trends-very-different-in-different-markets/

January 14 - 75 degrees - playing golf - wow

Can't believe I played golf on January 14 in shorts - so that's off the bucket list

Home Prices Poised For Growth in 2013

http://blogs.wsj.com/developments/2013/01/03/report-home-prices-poised-for-growth-in-2013/?mod=WSJBlog&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+wsj%2Fdevelopments%2Ffeed+%28WSJ.com%3A+Developments+Blog%29

Real Estate Provisions in “Fiscal Cliff” Bill

Real Estate Provisions in “Fiscal Cliff” Bill

On Jan. 1 both the Senate and House passed H.R. 8 legislation to avert the “fiscal cliff.” The bill was signed into law by President Barack Obama on Jan. 2.

Below is a summary of real estate related provisions in the bill:

Real Estate Tax Extenders

• Mortgage Cancellation Relief is extended for one year to Jan. 1, 2014
• Deduction for Mortgage Insurance Premiums for filers making below $110,000 is extended through 2013 and made retroactive to cover 2012
• 15-year straight-line cost recovery for qualified leasehold improvements on commercial properties is extended through 2013 and made retroactive to cover 2012
• 10 percent tax credit (up to $500) for homeowners for energy improvements to existing homes is extended through 2013 and made retroactive to cover 2012

Permanent Repeal of Pease Limitations for 99% of Taxpayers

Under the agreement so called “Pease Limitations” that reduce the value of itemized deductions are permanently repealed for most taxpayers but will be reinstituted for high income filers.  These limitations will only apply to individuals earning more than $250,000 and joint filers earning above $300,000.  These thresholds have been increased and are indexed for inflation and will rise over time.  Under the formula, the amount of adjusted gross income above the threshold is multiplied by 3 percent.  That amount is then used to reduce the total value of the filer’s itemized deductions.  The total amount of reduction cannot exceed 80 percent of the filer’s itemized deductions.

These limits were first enacted in 1990 (named for the Ohio Congressman Don Pease who came up with the idea) and continued throughout the Clinton years.  They were gradually phased out as a result of the 2001 tax cuts and were completely eliminated in 2010-2012.  Had we gone over the fiscal cliff, Pease limitations would have been reinstituted on all filers starting at $174,450 of adjusted gross income. 

Capital Gains

Capital Gains rate stays at 15 percent for those in the top rate of $400,000 (individual) and $450,000 (joint) return.  After that, any gains above those amounts will be taxed at 20 percent.  The $250,000/$500,000 exclusion for sale of principal residence remains in place.

Estate Tax

The first $5 million dollars in individual estates and $10 million for family estates are now exempted from the estate tax.  After that the rate will be 40 percent, up from 35 percent.  The exemption amounts are indexed for inflation.