Go With Your Best Option - Sleepless in Sturbridge

Mortgage Rate Outlook for The Week Startin Jan. 24th.

Rates last week remained in a tight range and it seems that could be the same this week. There is some economic data being released this week that could shake the markets a bit so it could be interesting.

Tomorrow The Case/Schiller Index is released-The S&P/Case-Shiller home price index tracks monthly changes in the value of residential real estate in 20 metropolitan regions across the U.S. The composite indexes and the regional indexes are seen by the markets as measuring changes in existing home prices and are based on single-family home resales. The key composite series are for the longer-running, original 10-city composite series and the newer and expanded 20-city composite. A national index is published quarterly. The indexes are based on single-family dwellings with two or more sales transactions. We have seen some down numbers the last few months so maybe we get a turnaround which would be great for the housing confidence. I do anticipate this to be another disappointing number however, which could push the rates down a bit.

Wed. New Homes Sales- New home sales measure the number of newly constructed homes with a committed sale during the month. New sales surprised in November let's hope for the same for December's numbers. 

 

I continue to believe the stock market is at the top of a trading range and it's due for a pull back. It looks easier for rates to come down a bit then to move up but we will have to watch closely.

 

 

John B. Saari

Community Banker

Home Savings of America

 

Direct Cell: 508-740-7442

Secure Fax: 781-503-1478

Seems like everyone cringes when they hear the words 203k Rehab loan.

However, with 7 million dollars in delinquent or foreclosed mortgages out there, they will become very needy words.

It is stating the obvious that when a home is foreclosed upon, the property becomes distressed. The party that is vacating the property is generally angry so they take it out on the home. They take items they shouldn’t and sometimes they destroy the property themselves. Couple that with the fact of the property being vacant, Mother Nature can be harsh (as we in the northeast have seen so much of lately) and vandalism is seen more often.

We need to embrace the 203k FHA Rehab loan. The biggest obstacle is fear of the unknown.

Expectations and communication are the keys to any successful transaction.

There are 2 types of 203k loans. A streamline and a consultant. A streamline is when the cost of rehabilitation is less than $35,000. A consultant would be that home requiring or wanting over $35,000 in repairs or upgrades. The contractors involved in the work can play one of the biggest roles in the process. Proper paperwork can make a world of difference (as in any transaction).

I am closing 203k loans in 45 days from submission. Your 

confidence in these loans can also come from knowing

 Prospect Mortgage is the #2 lender of 203k loans across the country. We have a team of underwriters and processors exclusively for 203k loans. They know the ins and outs and are proactive in the process/approval.

Don’t walk away from a 203k or rehab loan. You will get paid. The customer will be pleased that they are getting the completed home of their desire,which will in turn bring referrals and additional listings and sales

If you would like more information on how 203K loans

can enhance your business,

Call me and I would love to sit down with you. I offer free signs to put out at your listings to advertise purchase and renovate which will

draw attention to those "fixer uppers"

Wendy Burdett- Prospect Mortgage

(508) 380-7697

www.myprospectmortgage.com/WBurdett

 

If you haven't seen the new 2011 Home Gain survey here are the results:

 

Out of the Top 10 recommended improvements, STAGING is the No. 3 improvement home sellers should make when selling their home according to the national Home Gain Survey. The recommendations are based on ROI or return on investment for each improvement.

Staging returns almost 300% of a sellers investment. How is this return calculated? Increased sales price!

#1 Improvement is cleaning and de-cluttering

#2 Improvement is lightening and brightening

#3 Improvement is Staging

Actually most home staging incorporates those #1 and #2 improvements as well!

1. Whether or not you're living in your home, staging it for sale always includes cleaning and de-cluttering as the first important step.

2. When we stage a home, recommendations are made to lighten and brighten by re-painting, removing furniture and changing light fixtures and window treatments.

Hiring a professional home stager to help you with cleaning, lightening and staging will net you a whopping combined 1200% return on investment. Now that's a smart move!

 

 

Hampton Redesign   817-891-9563   www.hamptonredesign.com

Tessa Skeens | Owner & Lead Staging Designer

Professional Home Staging and Redesign Services Serving Greater Fort Worth TX Including Aledo, Willow Park, Benbrook, Keller, Arlington, Southlake, Colleyville, Hurst, Mansfield, Burleson and Tarrant County

 

What Happens if the House You're Buying Does Not Appraise?

If you are purchasing a home and financing it with a mortgage, the bank will require an appraisal of the property to determine its market value before committing to a mortgage.  They determine the dollar amount they are willing to lend you based on the appraised value of the house as opposed to the purchase price of the house.  Hopefully the two numbers will be one and the same. 

But, what happens if the house you're buying does not appraise, and the appraised value is less than the agreed upon purchase price?  You've got several options.

• You can renegotiate the deal and try and get the seller to drop the price to the appraised value.  This is the best option.  It will allow the sale to go thru as planned.  If the seller refuses to drop the price, he runs the risk of losing his buyer and in all probability the next buyer that comes along will have the same problem of the home not appraising.  No one wants to purchase a home at a higher than market value price.
• The buyer can make up the difference between the appraised value and the agreed upon sale price by putting extra cash down.  Of coarse this is only an option if he has the cash and if he's willing to purchase a home at a higher than market value price.  If this is the house of his dreams, then it may just be the seller's lucky day!
• The seller and the buyer split the difference and meet somewhere in middle.  The seller reduces the price somewhat and the buyer brings cash to the table. This is the most frequent solutions.

• You can cancel the transaction.  If all else fails and your purchase offer was contingent on mortgage and appraisal, then you could walk away from the deal and still get your deposit money back.

If none of the above options work there still remains one other possibility.  The buyer can try to get the appraisal adjusted.  Appraisals are based on the choice of comparable sales within the past 60 days within a radius of a few miles, and within 10% variance in size.  If you know of any homes in the immediate area that are pending sales, similar in size and value, that the appraiser overlooked, you can offer it up for consideration.  It's worth a try!

Hopefully, you and your realtor have done your homework and your offer based on the current market stats will have no appraisal issues. But, not to worry if there are glitches; most can be remedied.

If you're looking for a home in Suffern NY or anywhere else in Rockland County, I'll be happy to be your guide and help you navigate through the home buying process and smooth the bumps along the way..

 Flickr photo by nikcname

Lora "Leah" Stern - Your Rockland County, NY REALTOR of Choice - (914) 772-4528

Your Rockland County, NY Real Estate Specialist

(914) 772-4528 CELL
(845) 369-1938 DIRECT LINE
(845) 634-0400 OFFICE
(862) 345-2463 FAX

If I can assist you in any way with your real estate needs in Suffern, NY Rockland County or the surrounding areas, please feel free to contact me by phone at (914) 772-4528, email me at Leah.Stern@cbmoves.com or visit my website .

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