Foreclosed Borrowers May Get Loans Again
Will people who currently face foreclosure or short sales who walk away from their underwater properties ever be able to get financing to buy another home down the road?
Banks haven't been very forthcoming on this issue. However, knowledgeable observers of the situation say that while it may take some time, the situation will right itself for most people.
Because bankrupt owners have eliminated their debts, they should "constitute attractive fodder for mortgage lenders," says University of Michigan law professor John Pottow, whose specialty is bankruptcy.
As home prices and the mortgage market stabilize, lenders will be motiv®ated to lend to people who previously had financial troubles if they look like they can pay they next time around, says Alan Riegler, a consultant with CCG Catalyst, which advises banks.
"The lender who figures out how to do more of this case-by-case stuff cost-effectively is going to end up ahead of the pack," Riegler says.
SOURCE: Inman News, by Matt Carter (03/05/2010), as published by the NATIONAL ASSOCIATION OF REALTORS®
How Accurate Are Home Valuation Websites?
I'd like to share an exellent article with you written by Heather Mendonca, a fellow REALTOR® and friend of mine from RE/MAX Visalia. Heather had the information reviewed by a representative from Zillow for accuracy. Enjoy!
There are several online website you can use to see what your home is worth but I will use the most popular, Zillow, in the following explanation to give you an idea as to how they all work.
To measure the accuracy of the Zestimates, Zillow goes back in time and compares the historic Zestimates with the actual transaction prices of homes that sold. Here's how it works:
Zestimate Accuracy/Star Rating: This shows how accurate the Zestimate is in a locale. Four stars indicate the best (most accurate) Zestimates, three stars better Zestimates, and two stars good Zestimates. One star indicates that Zillow is only able to show tax assessed values, and not Zestimates. If they do not show any stars, they do not have enough data to indicate valuations.
Median Error: Half of the Zestimates in an area were closer than the error percentage and half were farther off. For example, in
Within 10%/Selling Price: This is the percentage of homes in a location for which the Zestimate was within 10% of the transaction price. For example, in the
According to Zillow the accuracy for Zestimates in
Tulare County Multiple Listing Report for January 2010
The Tulare County Multiple Listing Service has published its January 2010 report. This report features statistics for the sales activities for all types of real estate. Here are the details regarding Single Family Residences:
Active Properties
Total Number: 1057
Average Price: $227,254
Median Price: $175,000
Pending Properties
Total Number: 279
Average Price: $155,243
Median Price: $141,500
Sold Properties
Total Number: 191
Average Price: $149,223
Median Price: $133,000
Average Market Time: 54 days
Click here for a handy printable PDF document of the complete report for all types of properties. For additional current monthly reports from The Tulare County Multiple Listing Service visit Market Reports in our Resource section of Visalia Fine Living each month.
Tax Credits for Home Improvements
As we enter into the tax season it is a great time to make plans on how to save on taxes for 2010. You may want to use your tax refund to make home improvements that you will receive tax credits for, in addition to saving money in your monthly budget. Here are some improvements you may want to consider. Feel free to contact me if you need suggestions for reputable vendors.
Tax Credits for Solar Water Heaters
A federal tax credit makes energy-efficient solar water heaters a more affordable and sustainable option for many homeowners. Read
Tax Credits for Replacing Heating and Cooling Systems
Upgrading to an energy-efficient heating and cooling system can save hundreds on your utility bills and earn you a tax credit worth as much as $1,500. Read
Tax Credits for Replacing Your Roof
Replacing your roof with a qualifying energy-efficient metal or asphalt roof can cut your cooling bill and earn you a $1,500 tax credit. Read
Tax Credits for Adding or Replacing Insulation
A federal tax credit makes adding insulation an even cheaper way to improve your home’s energy efficiency and cut your heating and cooling bills. Read
Tax Credits for Replacing Windows, Doors, and Skylights
If money seems to be escaping through drafty windows, doors, and skylights, this federal tax credit might make energy-efficient replacements more affordable. Read
© Copyright 2010 NATIONAL ASSOCIATION OF REALTORS®
What is a Short Sale?
A short sale can be an excellent solution for homeowners who need to sell, and who owe more on their homes than they are worth. In the past, it was rare for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in corporate policy and the Obama administration have also improved the chances of getting a short sale approved.
But to be technical, here's a more official definition:
- A homeowner is 'short' when the amount owed on his/her property is higher than current market value.
- A short sale occurs when a negotiation is entered into with the homeowner's mortgage company (or companies) to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is then 'sold short' of the total value of the mortgage.
For homeowners to qualify for a short sale, they must fall into all of the following circumstances:
- Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
- Monthly Income Shortfall – In other words: "You have more month than money." A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
- Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.
This seems simple enough, but it is a complicated process that takes the expertise of experienced professionals. Natalie Sweeney is a CDPE serving homeowners in Visalia, Tulare, Exeter, and the surrounding areas. Contact Natalie and together, you can identify all possible options and, when possible, a CDPE can assist you in the quick execution of a short sale transaction.
Source: Certified Distressed Property Institute
What is a CDPE?
A CDPE, or Certified Distressed Property Expert®, is a real estate professional with specific understanding of the complex issues confronting the real estate industry, and the foreclosure avoidance options available to homeowners. Through comprehensive training and experience, CDPEs are able to provide solutions for homeowners facing hardships in today's market, specifically short sales.
The prospect of foreclosure can be financially and emotionally devastating, and often homeowners proceed without guidance of any kind. The developers of the CDPE Designation believe that the best course of action for a homeowner in distress is to speak with a well=informed, licensed real estate professional. They have the tools needed to help homeowners find the best solutions for their situation. Often, when other options have been exhauseted, CDPEs can help homeowners avoid foreclosure through the efficient execution of a short sale.
While enduring financial difficulties is challenging for any family, the process of finding a qualified real estate professional should not be. Selecting an agent with the CDPE Designation ensures you are dealing with a professional trained to address your specific needs. For more information contact a CDPE in your area. If you are located in the Visalia, Tulare, Exeter and surrounding areas you can contact Natalie Sweeney, REALTOR® and CDPE. She can also introduce you to a CDPE if you are located in another area of the United States.
CDPEs don't merely assist in selling properties, they serve and help save their clients in need.
SOURCE Certified Distressed Property Institute
Saving Energy = Saving Money = Good Idea
The government is expected to unveil a new program in the next
couple of months that, if approved, may reimburse homeowners for
up to half the cost of making their homes more efficient. Through the
program, homeowners will receive the largest return from simple
upgrades like caulking windows, adding insulation, and changing
incandescent light bulbs to those that are more energy-efficient.
To determine which energy-efficiency upgrades are best for their
house, homeowners should obtain a energy audit. Homeowners are
advised to hire a contractor licensed by the Building Performance
Institute or the Residential Industry Services Network. These
contractors have been trained to first test a home to determine the
amount of energy it is losing, and then make suggestions or
renovations.
Tulare County Multiple Listing Report for December 2009
The Tulare County Multiple Listing Service has published its December 2009 report. This report features statistics for the sales activities for all types of real estate. Here are the details regarding Single Family Residences:
Active Properties
Total Number: 1000
Average Price: $241,611
Median Price: $185,450
Pending Properties
Total Number: 243
Average Price: $154,133
Median Price: $134,900
Sold Properties
Total Number: 291
Average Price: $150,329
Median Price: $140,000
Average Market Time: 48 days
Click here for a handy printable PDF document of the complete report for all types of properties. For additional current monthly reports from The Tulare County Multiple Listing Service visit Market Reports in our Resource section of Visalia Fine Living each month.
Governor Schwarzenegger proposes extension and expansion of home buyer tax credit
Governor Schwarzenegger announced his 2010 proposals for California during his State of the State address this week. One of his proposals is a recommendation to set aside $200 million for a first-time home buyers' tax credit of $10,000. Unlike the previous $10,000 credit, this credit can be received for purchasing an existing home, whereas the previous year's tax credit only applied to new home purchases.
Home buyers can combine the state tax credit with the federal tax credit for home buyers. The federal tax credit provides qualifying first time buyers with an $8,000 credit and qualifying repeat buyers a $6,500 credit when purchasing a new primary residence. Buyers must be in contract by April, 2010 and close escrow by June, 2010.
Welcome Home RE/MAX Visalia
The agents of RE/MAX Visalia have been located in several offices over the past few years as the company has continued to grow beyond the capacity of our facilities.
This past summer many of us moved into our new location and were joined by additional agents who have made RE/MAX Visalia their new home. This week we have moved the last group of our agents from our Main Street location into our beautiful new building located at 4840 W. Mineral King Avenue between Linwood and Akers in Visalia. We are now all under the same roof and are ready to serve our clients and community in 2010. Welcome home RE/MAX family!
Welcome to Natalie's Blog!
Happy New Year! We at Visalia Fine Living are excited about 2010 and all the opportunites available to help our friends and clients have a geat year. To kick off the New Year we are launching Natalie's Blog, a place to find the latest in both Real Estate and Fine Living. We hope you enjoy your visit and come back often, as we are continually adding new content. We welcome your ideas for additional features and any other comments or questions you may have. We'd love to hear from you!
