Cold Hard Facts on the Changing Market September 17, 2007
Posted by Patti Shawgo in Local News, Real Estate.add a comment
Gosh, it’s been more than a week since my last post! I guess I needed a week off blogging. Well, here is some news to you started this week. It’s not all good news, but is the bad really all that bad?
The chart above is compiled from data from the Metropolitan Regional Information Systems, Inc. It shows the total number of resale properties for Baltimore, Harford, Carroll, Howard Counties and Baltimore city for August 2007 and August 2006.
August is a funny month for real estate anyway, the summer well known as the busy season, has August which is usually a bit slower than June and July. Parents & kids are starting to really get into back to school mode, and it’s so darn hot, do you really want to move all your furniture?
Anyhow, this August was a good bit slower than last August, and it is the first time the average sales price is lower from one year to the next. Being that this average is based on all homes sold, I believe this has more to do with the halt in higher priced home sales. As I discussed in a previous post, mortgage rates for jumbo loans (those about $417,000) have really sky-rocketed, making already expensive homes even more out of reach.
Now that interests rates have started to come down, I think we will see a busy September and October. In my own business, I’m seeing buyers that want to buy, but they want to make sure they are getting the right deal, given the market. There are buyers out there, and if you are selling, you have to make it worth it to the buyer (one way or another) to see the value in why they should buy your home, a harsh truth in the new market.
For Sale By Owner Breakdown September 7, 2007
Posted by Patti Shawgo in Interesting Stuff, Real Estate.1 comment so far
The statistics in the chart are from the National Association of Realtors. I think it should give people REALLY wanting to sell their homes quickly to stop and think for a moment. Most people already know that almost all homes are sold with the assistance of a Realtor, but in this slower market while some may think about selling it on their own to “save” money, to really get the job done you probably want to contact a Realtor.
Of all the for sale by owners sold, a good portion of those sold know who is buying their house. The fact is, if you really want to SELL your house, and not just hope that it gets sold, the exposure that a Realtor can give your property is unequaled.
Just a quick thought this Friday. Hope you have a great weekend! The weather is fabulous!
How to Get out of your ARM and/or Subprime Loan, FAST September 6, 2007
Posted by Patti Shawgo in Credit, Interesting Stuff, Mortgage News.2 comments
Have you gotten that dreaded notice in the mail that your adjustable rate mortgage is about to reset? Did you get a subprime loan where your payment ballooned and now you can’t afford the payment?
The federal government is passing some actually somewhat-useful emergency legislation. FHA Secure will allow home owners with sub-prime mortgages and resetting ARM’s a more streamlined way to refinance.
Below are some highlights, want more information? Contact me at patriciacshawgo@gmail.com
Highlights of the FHASecure Initiative:
1. The mortgage being refinanced must be a non-FHA ARM that has reset.
2. The mortgagor’s payment history on the non-FHA ARM must show that, prior to the reset of the mortgage, the mortgagor was current in making the monthly mortgage payments.
3. If there is sufficient equity in the home, under additional eligibility, FHA will insure mortgages that include missed mortgage payments.
4. Under certain conditions, FHA will insure first mortgages where (1) the existing note holder writes off the amount of indebtedness that cannot be refinanced into the FHA insured mortgage; or (2), the FHA-approved lender making the new mortgage or the existing note holder may take back a second lien that includes closing costs, arrearages or previous secondary financing.
5. Lenders must determine, as part of the underwriting process, that the reset of the non-FHA ARM monthly payments caused the mortgagor’s inability to make the monthly payments and that the mortgagor has sufficient income and resources to make the monthly payments under the new FHA-insured refinancing mortgage.
More House 4 Less Part 2: Maryland CDA + House Keys 4 Employees September 4, 2007
Posted by Patti Shawgo in First Time Home Buyers, Interesting Stuff, Local News, Mortgage News, Mortgage Stuff, Real Estate.5 comments
Last week, I included an article about the Maryland CDA loan program (also known as More House 4 Less) and how it can help you get money for closing costs. It is one of my favorite loan programs and is only going to be more useful in this changing market. You can get a lower than market interest rate and money for a down payment/closing costs and all you need to do is take a home buyer education workshop (that is, if you talk to me, because I will pretty much handle all the other paperwork for you).
There is another part of the CDA loan program, and that is House Keys 4 Employees. In addition to the regular money for closing costs that CDA will give you, if you work for one of the participating employers, you can get more! If your employer is on the following list of employers, not only will they give you money, but the state of Maryland will match it! You can get up to $15,000 with the money from the regular CDA program plus the House Keys program.
Want to see if you employer is on list?? Read On….
