Today's Real Estate Market
I get many questions about what is going on in our market and where our market is headed. I thought I would try to answer a few of the most common questions asked. Keep in mind that not everyone's scenario is the same and certain conditions may apply, but these are the general answers. You are more than welcome to contact me with more in depth information.
1. What is a short-sale?
A short-sale is when a seller of a home asks the bank/mortgage holder to take less for the home than what is owned on a home. Basically the seller is unable to sell the home for what is owed on the home due to a hardship, loss of income, or other non-controlling circumstances. Banks won't normally just agree to take a home at a loss without proper due-diligence of the home owner, this includes having the home on the market for usually at least 3 months before asking for a short-sale. There is several items the bank will need from the seller in order to get the process started; proof of marketing the home on the mls(usually a realtor listing agreement will suffice), a hardship letter, proof of current financial status, last 2 months bank statements, and last two paystubs. Most banks take 30-90 days to ok a short-sale after recieving an offer on the property. So, unfortunatley this can take quite a bit of time, but if an agreement can be made between the bank/seller and the new buyers, this can be a great way for sellers to escape the foreclosure process. The banks may issue a 1099 showing that they took a loss and that the seller will need to account for the loss as income earned. This is a grey area and it's best if you speak with your accountant, as I've spoken to several accountants who have said that a seller may not have to count the 1099 as income.
2. How can I buy foreclosed properties?
Many homes taken back by banks are immediately put back on the market, as the banks prefer to not have to keep and maintain the homes. Many foreclosed homes may need TLC, so it's best to inspect the home as the banks will not make any repairs and will only sell the homes as-is. You are more than welcome to search for homes on my website www.jennifurshomes.com
3. Is it safe to buy in today's market?
It's important to look at your own financial needs in the present and future. Many buyers tend to try to buy more house and therefore more of a payment than what is reasonable for their certain economic position. It's best to have a home that will let you live your life and not be stressed about were your next mortgage payment will come from. You will find that many lenders are becoming very strict, requiring money down, good credit scores, and proof of income. I believe that the buyers that are buying homes now are the ones that are fully quallified, thus our market is starting to build strength again. Honestly, interest rates are still good, home prices are low, have they reached the bottom... Only time will tell. There's so many good deals that honestly as long as you plan on living in the home for a few years, I really don't think you will have any issues, as trends show that what goes down will eventually go back up, it will just take a few more years.