It's been a month since my last post and the main reason why is because I have been swamped working with buyers and sellers in this challenging and changing real estate market!
The news has been full of stories about the housing market collapse, and the increase of foreclosures. This news is nothing but opportunity for buyers - as homes can now be purchased at 30 to 50% below the market value they were selling at 6 months ago.
For sellers, a short sale is a welcome way to get out of a too-high mortgage payment, and, to avoid foreclosure at the same time. Once the bank approves a buyer's offer on your property, and you close on your home sale - your credit history report will display a "satisfaction of mortgage" on your home loan/sale - rather than "foreclosure." This is a much better way to exit from your obligation, if you have exhausted all your other options for refinancing, or continuing to pay the mortgage.
If you're interested in finding out more about a short sale on your home, contact me. If you're a buyer and would like to look for value in a short sale purchase opportunity, do the same. I'm here to help!
Friday, November 30, 2007
Thursday, October 25, 2007
Million dollar question: when will the decline in home prices end?
Yep, the million dollar question these days is - how low will our American home prices go? It's interesting to ponder. You could ask ten random people and you'd get at least ten different responses. If you asked a gambler the same question, he might pause and say, "hey, let's take a guess and BET on it!" Those of us who've spent time in Vegas understand - gamblers win some, and they lose some.
Here's my point... in many areas of America homes are now selling at averages that are 10% or more BELOW the median sales prices of two years ago. This means, you can buy a home today, and only pay 2005 prices. Historically, American homes on a year-to-year average, appreciate at a rate of 4 to 7% per year.
Buy today, and you'll still be ahead even if the market drops another 5%. If you hold the home for 5 to 10 years - you will have property that has appreciated and is worth more (4 to 7% per year) than you paid for it.
As a homeowner that has been my experience. As a realtor, I've had the pleasure of watching it happen for my friends and clients.
Here's my point... in many areas of America homes are now selling at averages that are 10% or more BELOW the median sales prices of two years ago. This means, you can buy a home today, and only pay 2005 prices. Historically, American homes on a year-to-year average, appreciate at a rate of 4 to 7% per year.
Buy today, and you'll still be ahead even if the market drops another 5%. If you hold the home for 5 to 10 years - you will have property that has appreciated and is worth more (4 to 7% per year) than you paid for it.
As a homeowner that has been my experience. As a realtor, I've had the pleasure of watching it happen for my friends and clients.
Thursday, October 11, 2007
Line of credit on your home? New exotic loan spells disaster...
Last night I heard firsthand (for the first time) of how a two-home owner is funding monthly bills, living expenses, and two mortgages by tapping into a "line of credit" loan he has on one of his homes.
Essentially, the homeowner is allowed to borrow money each month from an equity loan that is tied to his Central Florida home. He uses that money to pay the "interest" on the two main home loans that he has.
I wondered how long this scenario could continue before the home's mortgage levels far exceed the selling and appraisal value of the home. Then I wondered if maybe it wasn't already at that point.
This is a scenario that is contributing to the mortgage default crisis that we're currently in. We will find more and more foreclosures in the Central Florida market in the coming year(s). Keep that in mind - and get your eyes and ears open!!
Essentially, the homeowner is allowed to borrow money each month from an equity loan that is tied to his Central Florida home. He uses that money to pay the "interest" on the two main home loans that he has.
I wondered how long this scenario could continue before the home's mortgage levels far exceed the selling and appraisal value of the home. Then I wondered if maybe it wasn't already at that point.
This is a scenario that is contributing to the mortgage default crisis that we're currently in. We will find more and more foreclosures in the Central Florida market in the coming year(s). Keep that in mind - and get your eyes and ears open!!
Saturday, October 6, 2007
Orlando Home Deals...short sales & foreclosures
In case you're wondering, what the real estate picture is in Orlando - let me relate what I'm experiencing as a real estate agent in the city of Mickey.
Foreclosures and short sales galore!
There are hundreds, perhaps thousands of pre-foreclosure situations in Central Florida. Why? Because there was hundreds of thousands of financed homes in the past four or five years that were financed with adjustable rates, or, were homes that were already financed, that the owners got additional funds out thru home equity loans.
The result is... hundreds of thousands of homeowners who cannot meet the monthly payments for their homes and home equity loans.
How does a short sale work? Basically, you make an offer on a property. And, the bank looks at the offer, and decides if they can take it, or if they need to proceed towards the foreclosure process.
You've heard of a bird in the hand is worth more than a bird in the bush? That's how short sale/foreclosures work. If you've made an offer on a property, the bank looks at it like - a SURE DEAL - and they seriously consider it.
If you'd like to put in a short sale offer on a property, contact me. I know how to make it close, and SAVE YOU MONEY! - Kayonne Riley (407) 625-7356
Foreclosures and short sales galore!
There are hundreds, perhaps thousands of pre-foreclosure situations in Central Florida. Why? Because there was hundreds of thousands of financed homes in the past four or five years that were financed with adjustable rates, or, were homes that were already financed, that the owners got additional funds out thru home equity loans.
The result is... hundreds of thousands of homeowners who cannot meet the monthly payments for their homes and home equity loans.
How does a short sale work? Basically, you make an offer on a property. And, the bank looks at the offer, and decides if they can take it, or if they need to proceed towards the foreclosure process.
You've heard of a bird in the hand is worth more than a bird in the bush? That's how short sale/foreclosures work. If you've made an offer on a property, the bank looks at it like - a SURE DEAL - and they seriously consider it.
If you'd like to put in a short sale offer on a property, contact me. I know how to make it close, and SAVE YOU MONEY! - Kayonne Riley (407) 625-7356
Wednesday, October 3, 2007
With only $1500 down - you can be a homeowner!
You're someone who has paid their bills, worked hard at your job, put in the time, put in the effort. You've got a little bit of money saved and you're starting to think about buying your own home? Maybe paying yourself each month, instead of paying rent?
Now is the time. There are thousands of deals on homes out there - with sellers offering to pay your closing costs, giving you free lawn service contracts, free HOA payments for a year, etc!!
It's never been a better time to be a buyer!! Many sellers are offering incredible deals to purchase their homes!
I have a listing on a beautiful corner-lot 3 bedroom, 1 and 1/2 bath home in Orlando. With a $169,500 purchase price, the buyer will only have deposit $1500 to get into this home!
Seller will finance all of the closing costs! Email or call kayonne@kayonne.com 407/625-7356
Now is the time. There are thousands of deals on homes out there - with sellers offering to pay your closing costs, giving you free lawn service contracts, free HOA payments for a year, etc!!
It's never been a better time to be a buyer!! Many sellers are offering incredible deals to purchase their homes!
I have a listing on a beautiful corner-lot 3 bedroom, 1 and 1/2 bath home in Orlando. With a $169,500 purchase price, the buyer will only have deposit $1500 to get into this home!
Seller will finance all of the closing costs! Email or call kayonne@kayonne.com 407/625-7356
If you're a buyer right now, there are incredible homes at great prices!
I spent another Saturday afternoon viewing a few properties in the Lake Mary / Sanford area. My buyer, that I have been working with for over a year, is looking for a 3 bedroom 2 bath home - she doesn't want a fixer-upper, she does want mature landscaping, and, she's looking for a price tag that's less than $225,000.
Lately, there are starting to be more nice houses that fit that criteria.
In particular, we looked a really nice home in the 1792 & Lake Mary Boulevard area that was a 1980-built, 3 bedroom 2 bath contemporary home with lots of mature oak trees, a huge fenced back yard - and the home was in fabulous shape. The owners were trying to sell it on their own, and they're currently asking $219,000 - just to see what the market will come up with.
My buyer was impressed, but didn't want to write a purchase offer, because - she reasoned, there's another five great houses to look at tomorrow. So - buyers rejoice! There's a world of home choice out there, you can be as picky as you need to be, and the prices and financing, right now, are on your side!!
Lately, there are starting to be more nice houses that fit that criteria.
In particular, we looked a really nice home in the 1792 & Lake Mary Boulevard area that was a 1980-built, 3 bedroom 2 bath contemporary home with lots of mature oak trees, a huge fenced back yard - and the home was in fabulous shape. The owners were trying to sell it on their own, and they're currently asking $219,000 - just to see what the market will come up with.
My buyer was impressed, but didn't want to write a purchase offer, because - she reasoned, there's another five great houses to look at tomorrow. So - buyers rejoice! There's a world of home choice out there, you can be as picky as you need to be, and the prices and financing, right now, are on your side!!
Short sellers usually owe Uncle Sam $$ money... but that may change...
For the longest time, Uncle Sam has considered that any money a homeowner gets from a second mortgage - that isn't paid back to the lending agency - is taxable income. That means, if you default on your home loan - and also never pay the 2nd mortgage - you face getting a tax bill from the IRS asking for income tax to be paid on the amount of money that you received from the second mortgage.
Now the federal government is considering relieving that extra IRS penalty for distressed homeowners. That's good news since short selling is often the most efficient way for a distressed homeowner to relieve themselves of their fiscal problems.
Now the federal government is considering relieving that extra IRS penalty for distressed homeowners. That's good news since short selling is often the most efficient way for a distressed homeowner to relieve themselves of their fiscal problems.
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