Alex Charfin with Distressed Property Institute appeared on Fox & Friends to discuss what is happening with these homeowners who are in default and what options they have.

Click here to watch the video with more information on what your options are if you are struggling with your mortgage.

Another video is available on this same increase in foreclosures and homeowners in default also available on u-tube.   Click here to watch

Angela Helfrick is a Certified Distressed Property Expert and works closly with Alex Charfin at the Distressed Property Institute to help homeowners who are in trouble know their options before foreclosure.

Call today if you are unsure if you need help.

FHA announced on January 21, 2009 that they will be raising the costs associated with an FHA loan for borrowers.

What does this mean?
Well buyers who are soon to be borrowers when you purchase a home…   This may mean that your required down payment will increase from 3.5% of the purchase price of your home to 5% or even 10%.

Also FHA is going to increase the Private Mortgage Insurance premiums associated with a loan that has a loan to value (LTV) of more than 80%.   So if you are not in the position to put 20% down on the purchase of your home, then you will be required to pay for what is called Mortgage Insurance (this protects the lender if you default on the loan).   Currently the up front Mortgage Insurance (MI) premium is set at 1.75% of the total amount of the loan.

The FHA has set to raise the up front MI to 2.25% of the total loan effective April 5, 2010.   One a $100,000 loan this is an additional $500 that you will have to come up with.

In addition to the up front MI FHA will also be increasing the down-payment from 3.5% to 10% for for higher risk borrowers who’s credit score falls below 580.   FHA does not have a credit score cut off, however, lenders are able to set their own guidelines and many will not approve borrowers who have a score below 620 in the current market.

There has also been a push by Housing analysts to increase FHA’s low down-payment of 3.5% to 5%.   Rather than increasing the down payment for credit worthy borrowers, it appears as if FHA is going to decrease the amount of seller contributions to the buyers closing cost from 6% to 3%.   A decrease in the amount of money the seller can kick in towards your borrower closing closts will also affect you as a borrower because it may mean you will have to bring more money to closing.

If you are a potential home buyer and you don’t have more than a lot of cash reserves to fund the purchase of your home, call me today at 770-874-6272.   Don’t wait because the next 2 months can be the difference between you getting to enjoy your new home in the Summer of 2010 and having to wait until Winter, 2011, or not at all.

On Friday November 6, 2009

President Obama signed the extension and expansion of the 2009 Tax credit.

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The following provisions became effective on November 6, 2010.

• The first time home buyer credit amount: remains at $8000 ($4000 married filing separate) Keep in mind this is only up to 10% of the purchase price
• First time home buyer is defined as a person who has not owned a home in the past 3 years.
• Current homeowner credit amount: $6500 ($3250 married filing separate)
• Definition of eligibility for current homeowner:   They must have used the home that has been sold or is being sold as a primary residence for at lease 5 of the past 8 years.
• Termination date of Credit: April 30, 2010
• Binding contract Rule:   Contracts binding prior to April 30, 2010 that are not closed will be still be eligible for the credit as long as they close by July 1, 2010
• Income limits increase effective 11/6/09: $125,000 Single; $225,000 Married; additional $20,000 phase out.
• Anti Fraud Rule:   Purchaser must attach documentation (HUD-1) to tax return.

Are you or any you know considering buying a home in the next 3 months?
If so, call 770-874-6272 today and to set up an appointment.

If you are not in the Metro Atlanta area please feel free to contact us with your location
and we will be happy to help connect you with an agent in your area.

*Please consult your tax accountant for further details on how to claim the credit.

The above chart is an activity chart for the metro Atlanta area in second quarter of 2009.

First, look at the green line that goes across the chart.   This line shows the delineation between a buyers and sellers market.   It shows that since we are well above a 6 month supply of inventory, we are in a strong buyers market.   What does a buyers market mean?   Well it simply means that there is a large supply of homes on the market than buyers who are looking to buy.   Despite being in a strong buyers market, I am finding that some listings are still getting multiple offers.   In fact there has been so much demand in the under 100k market, that it has started to feel like a sellers market again.

Secondly, lets look at the black line that goes up and down across the chart.   This line is the actual months supply of homes.   You can see that overall there is currently over a year supply of homes on the market.

Next, let’s look at the Red columns.   These columns represent the “tryers.”   Tryers are those people who put their home on the market intending to sell it and are still waiting to attract a buyer.   If you look to the left, you will see the number on homes in thousands that are currently on the market.

Finally, look at the smaller Blue columns.   These columns are small, but have made huge accomplishments, they are the WINNERS!   The “winners” are those who found a buyer and made it to the closing table.   They sold there home!

Do you want to be a Winner?   Call us today to get help with selling your home!

Foreclosures continue to have a large impact on the Metro Atlanta Market home prices.   As you can see in the chart above over 37% of the sales in second quarter 2009 were foreclosures with a rise in the number of foreclosures across the board in each price point.   Foreclosure sales still continue to be the highest in the under 200k price category.

What does this mean for you as a buyer?
Well it means that you are more likely going to be looking at foreclosures if you are searching in the under 200k price point.   It also means that you will likely be able to find a foreclosure in a neighborhood that you previously couldn’t afford to buy in.   The question is are you willing to do some repairs and cosmetic work on the home you buy?….   The reason I say this is because, foreclosures are as is sales and you will be responsible to fix the issues.   If you want a move in ready home, you should ask your Realtor to sort out the foreclosures to increase your chances o finding a home that needs less work.

What does this mean for you as a Seller?
Unfortunately, like it or not, the foreclosure down the street is a comp for your home.   This foreclosure will not only distract the buyers who are looking at your home, but it will also bring down the values in your neighborhood when it sells.   Most buyers will look at yours and want to buy it for the price of the foreclosure.   Does this mean you must sell your home for the same price?   Not necessarily, but if you want to sell your home, you will likely need to sell for closer to the foreclosure price than you think.   If you prefer not to reduce your sales price in line with the market, your agent can help show you recent sales in the area and what is actively on the market, it will take you much longer to sell your home. (In some cases well over 1 year)

Remember in today’s market, it is important to be the best looking and best priced home in your price point.   This is why it is so important to study the sold listings and get home in line with the solds, while still looking at the active listings so you are always the best looking house they buyers will see.

Call us today at 770-874-6272 for help with getting your home sold.

Market conditions are absolutely perfect for purchasing a new home.   Rates are historically low, tax credits are available, and prices are absolutely awesome.    Lending standards have tightened, but not to the degree you may be led to believe by the media.   There are several great products that  can help you achieve the  dream of home ownership:

FHA:   This is a loan product that has some great features for all home buyers.

• FHA loans require a minimum of 3.500% down payment
• FHA loans have Low monthly PMI
• With FHA you can have Loan amounts up to $346,250.00
• Low rates
• Flexible credit guidelines

Conventional:   This is a loan product that is great for someone looking to put more money down or buying over the FHA limit.

• Great rates
• Conventional loans have Loan limits up to $417,000
• With Conventional loans you can put down as little as 10%
• Tax Advantage Mortgage Insurance rate options (PMI built into the rate for customers putting less than 20% down).

VA: This a loan that is available to those who have served our country.

• With VA loans you do not have to have a down payment, this is 100% financing
• The husband or wife can use the spouses VA eligibility to buy a home while the spouse is deployed by getting a power of attorney.

These are just some highlights of what is available to you.   Keep in mind that rates have been rising and are likely to continue to do so.   Act now and take advantage of this great time to buy.

Contact Brent Turner with Bank of America for more details:

brent.turner@bankofamerica.com

(C)404-372-0004

• AUGUST 4, 2009, 2:42 P.M. ET

Taylor Bean Suspended From FHA Lending

 

By JAMES R. HAGERTY and LINGLING WEI

The Federal Housing Administration Tuesday suspended Taylor, Bean & Whitaker Mortgage Corp. from making loans insured by the federal agency, knocking out one of the biggest FHA lenders at least temporarily.

The FHA said the Ocala, Fla.-based lender failed to submit a required annual financial report and to disclose to the FHA "certain irregular transactions that raised concerns of fraud." Taylor Bean has 30 days to appeal the suspension.

Taylor Bean was the 12th largest U.S. mortgage lender in the first six months of this year, according to Inside Mortgage Finance, a trade publication. Among originators of FHA loans, Taylor Bean was the third largest in May, with a market share of 4%, according to the publication. Only Bank of America Corp. and Wells Fargo & Co. were larger.

Taylor Bean's woes are a major blow for hundreds of brokers and smaller mortgage banks that sell the loans they originate to the privately owned company. Those small mortgage companies will have to scramble to find new partners if they are to remain in the booming FHA lending business.

FHA loans have surged in popularity over the past two years as other sources of mortgage funding have dried up.

Lee B. Farkas, chairman of Taylor Bean, said in response to questions that he was unaware of the FHA action.

Ginnie Mae, a government agency that guarantees payments to holders of securities backed by FHA loans, said Taylor Bean is also barred from issuing securities backed by Ginnie. Ginnie said it will take control of nearly $25 billion of mortgage securities issued by Taylor Bean.

The moves came a day after federal agents raided the Florida offices of Colonial BancGroup Inc. and Taylor Bean. Taylor had been leading a group of investors that proposed to shore up Colonial by taking a stake in the Alabama-based bank but that transaction fell through last week amid heavy losses at Colonial.

Write to James R. Hagerty at bob.hagerty@wsj.com and Lingling Wei at lingling.wei@dowjones.com

The above Chart compares the median days on market of Metro Atlanta homes that required a price reduction vs those homes that did not require a price reduction.   The Sellers that were required to reduce their price to attract a buyer took 7.5 times longer to sell than the Sellers in Metro Atlanta priced their home right the first time.

The results of possibility pricing vs probability pricing are: Possibility pricing causes the seller to have higher carrying costs, greater inconvenience due to keeeping the house in showing condition and delays in finding and moving to a new home.

Seller’s Ask yourself:   How long do you want to deal with the hassel of having your home on the market?

The above chart of first quarter stats in Metro Atlanta shows how sellers who didn’t get their home priced right ended up selling for much less than those sellers who priced their homes well when their home was initially listed.   The sellers that required a price reduction to attract a buyer netted 23.4% less than the sellers who sold with out a price reduction.

The first quater 2009 percentage difference of -23.4%, would amount to a reduction of -$45,500 at the median sales price in Merto Atlanta, for sellers that require a price reduction.

Who do you know that needs to sell?

Call Us today at 770-874-6272 to get a realistic view on

how the market will affect the sale of your home.

The above chart shows the metro Atlanta, Georgia Median Sales Price in first quarter 2009 compared to the median sales price of years past in Altanta, Georgia.   This chart shows the statistics for years 2003 through present.   Overall, we can note that the median sales prices in the first quarter 2009 in Metro Atlanta are substantially lower than any period since January, 2003.

What do these Statistics mean for Atlanta Buyers?
Now is an excellent time to buy!   All homes are on sale now compared to years past.   As the saying goes, “Buy low and Sell high.”   Forget what prices might do in the next 3-6months (see blog titled how to time the bottum of the market) when you buy now even if the prices still fall a little, in several years when it comes time to sell you will have built up equity.   That’s income, just for buying a home which you need to live anyway.

What do these statistics mean for Metro Atlanta Sellers?
If you purchsed your home since 2003, likely you will not be able to sell your home for more than you purchased it for.   So it’s time to evaluate why you are wanting to sell your home.

• Do you need to sell due to a job related move?
• Are you unable to afford your currently Mortgage and can’t refinance?
• Did you inherit the home and need to sell?

These are all REAL reasons that people need to sell and can’t wait for the market to improve. (there may be other reasons that may make it necessary for someone to sell that I have left out)

• Are you trying to sell because you would like to buy a bigger and better home? (aka Move Up Buyer)

This is an excellent reason to sell in todays market.   Yes you may loose on the sale of your current home, but you will save more than you loose when you buy a bigger better home.

Call the Helfrick team today if you are ready to take advantage of today’s market.

Q. Can a real estate agent really help and Benefit me in buying and selling property?

A. The answer is YES!!!

When you’re ready to think about buying or selling your property, you need to ask yourself the following questions: Do you have the time, energy, sources of information, and contracts to do the job yourself? If you are one of the do-it-yourself buyer or seller, will the results be as good or better than they would have been if you had professional assistance? Would it go smoother? Would it give you more personal time? Would you have purchased for less. Or sold for more, if a real estate agent was involved? Read the following information and learn how a real estate agent can help you understand everything you need to know about a real estate transaction. This is the time to choose a real estate licensee. When picking a real estate agent, look for one who is also a REALTOR ®. A REALTOR ® is a member of the NATIONAL ASSOCIATION OF REALTORS ®, a real estate trade association, and all members agree to abide by a 17 article Code of Ethics. A REALTOR ® has many resources to assist you in that search.   It is also to look for an real estate agent who works with a successful Real Estate Company or Broker?

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Q. What is Agency?A. There are many types of agency and it is important to know your options.   Examples of types of agency: Buyer Agency, Seller agency, Dual Agency, Sub Agency, Landlord Agency, Tenant Agency.

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Q. What is the process of buying real estate? TopA. First you need to decide to buy.   Once you have decided to buy a home whether it be for investment or personal enjoyment generally starts with determining your buying power.   When you are determing your buying power, you will need to evaluate your financial reseves (this will serve as down payment and cover other expenses associated with buying) and determine your borrowing capacity. Once you have determined your buying power, it is important to consult with a real estate agent.   You can give your Realtor some basic information about your available savings, income and current debt, so they can refer you to lenders best qualified to help you. In today’s economy the lenders and mortgage companies have tightened their lending policies which leaves borrowers with limited choices. Good agents work with many lenders and who are knowledgeable about the various financing options available.   It is important for you as a home buyer to know your options, so be sure to find a lender that is willing to take the time to help you find a loan that fits your goals and lifestyle.   Once you have gotten pre-approved and fully understand the good faith estimate, which outlines the costs associated with your home purchase, it is time to get ready to find your home.Finding
Once you know how much you can and want to invest, the next step is to find the properties available that most closely fit your needs. At this time it is important to make a buyer’s consultation appointment with your agent, so they can analyize your wants and needs.   This will save you time and help your agent your agent understand what is most important to you so they can focus on homes that fit your criteria. Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your agent to find all available products.Selecting
Your job is to make the final selection of the right property for you. This is when excitement and emotion run high. Your real estate agent can assist you in the selection process by providing objective information about each property. Agents who are REALTORS ® have access to a variety of informational resources. REALTORS ® can provide local community information on utilities, zoning, schools, taxes, etc. There are two things you’ll want to know. First, does this property fit must must haves and as many of my wants as possible. (This is what you established with your Realtor at the buyer’s consultation) Second, will the property provide the environment I want for a home or investment? Third, will the property have resale value when I am ready to sell?

Negotiating
There are many factors when it comes to negotiating, including, but not limited to price, financing, terms, date of possession, and often the inclusion or exclusion of repairs and furnishings or equipment. The purchase agreement is a legal document that is generally standard for the state that you are puchasing your home in.   This contract will provide a set   period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase.   The inspection period may be referred to as “Due dilligence period”   Your agent can advise you as to which investigations and inspections are recommended or required.

Due Diligence
With a negotiated agreement in hand, it is time to complete the evaluation of the property. Depending on the area and property, this could include inspections for termites, dry rot, asbestos, faulty structure, roof condition, septic tank and well tests, just to name a few. Your agent can assist you in finding qualified responsible professionals to do most of these investigations and provide you with written reports. You will also want to requset any HOA documents and requirements at this time.

Financing
Once you have the house you want “under contract,” you’ll have a specified time frame in which you must obtain the proper financing to purchase the home. If you have not already done so, you will want to contact your lender to get a list of ducuments that you are required to provide for full loan approval and get those documents turned in efficiently.

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Q. What is the process of selling real estate?
A. Pricing
This process generally begins with a determination of a reasonable asking price.   In a today’s buyers market, this is crutial because of high inventory levels.   Your real estate agent can give you up-to-date information on what is happening in the marketplace and the price, financing terms, and condition of competing properties. These are key factors in getting your property sold at the best price, quickly and with minimum hassle.   When in a buyers market, it is key to find a Realtor that will be honest and educate you on the market, even if it is not what you want to hear, so you can make the right choices to get your home sold.   To sell your home in a buyer’s market, you need to be the best looking and best priced home.
Marketing
The next step is a marketing plan. Often, your agent can recommend repairs or cosmetic work that will significantly enhance the stability of the property. Marketing includes the exposure of your property to other real estate agents and the public. In many markets across the country, over 50% of real estate sales are cooperative sales; that is, a real estate agent other than yours brings in the buyer. Your agent acts as the marketing coordinator, disbursing information about your property to other real estate agents, etc. The REALTOR ® Code of Ethics requires REALTORS ® to utilize these cooperative relationships when they benefit their clients.Advertising is part of marketing. The choice of media and frequency of advertising depends a lot on the property and specific market. For example, in dome areas, newspaper advertising generates phone calls to the real estate office, but statistically has minimum effectiveness in selling a specific property. Overexposure of a property in any media may give a buyer the impression the property is distressed or the seller is desperate. Your real estate agent will know when, where and how to advertise your property to obtain the best results.

There is a misconception that advertising alone sells real estate. The National Association of REALTORS ® studies show that 82% of real estate sales are the result of agent contacts through previous clients, referrals, friends and family, and personal contacts.

It is very important for your agents marketing to have a strong internet marketing campaign as 90% of buyers search online for their next home.

Security
When the property is marketed you do not have to be responsible to show strangers into your home.   In fact it is best for your safety to refer all potential buyers to your agent.   Agents will generally pre-screen and accompany qualified prospects through your property.

Negotiating
The negotiation process deals with much the same issues for both buyers and sellers, as noted above under the buying process. Your agent can help you objectively evaluate every buyer’s proposal without compromising your marketing position. This initial agreement is only the beginning of a process of appraisals, inspections, and financing–a lot of possible pitfalls. Your agent can help you write a legally binding, win-win agreement that will be more likely to make it through the process.

Monitoring, Renegotiating and Closing
Between the initial sales agreement and closing (or settlement), questions may arise. For example, unexpected repairs are required to obtain financing or a cloud in the title is discovered. The required paperwork alone is overwhelming for most sellers. Your agent is the best person to objectively help you resolve these issues and move the transaction to closing (or settlement).

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Q. How do real estate agents get paid?
A. Real estate agents or brokers are generally paid through the sales commission paid by the seller when a transaction closes. Agents have expenses and financial obligations just like you, so it will be to your mutual benefit if you choose a real estate agent and stick with that person. The agent will respect your loyalty and respond with a sincere commitment to you.

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Q. Why a REALTOR ®?
A. All real estate licensees are not the same. Only real estate licensees who are members of the National Association of REALTORS ® are properly called REALTORS ®. They proudly display the REALTOR ® “R” logo on their business cards or other marketing and sales literature. REALTORS ® are committed to treat all parties to a transaction honestly. REALTORS ® subscribe to a strict code of ethics and are expected to maintain a higher level of knowledge of the process of buying and selling real estate. An independent survey reports that 84% of home buyers would use the same REALTOR ® again.Real estate transactions involve one of the biggest financial investments most people experience in their lifetime. Transactions today usually exceed $100,000. If you had a $100,000 income tax problem, would you attempt to deal with it without the help of a CPA? If you had a $100,000 legal question, would you deal with it without the help of an attorney? Considering the small upside cost and the large downside risk, it would be foolish to consider a transaction in real estate without the professional assistance of a REALTOR ®! Find out about the REALTORS ® strict Code of Ethics.

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Consumer Satisfaction With REALTORS ®Nearly eight out of ten consumers believe real estate brokers and sales associates can show buyers a better selection of homes than they can find on their own, according to an independent survey of the general public released by the NATIONAL ASSOCIATION OF REALTORS ®. Seventy-eight percent of the general public believe real estate professionals offer them a broader selection of housing alternatives than they would otherwise find. Seventy-four percent agree that using a real estate broker saves time, and 70 percent agree that real estate professionals make buying or selling a home much easier.In another independent survey of more than 1,000 buyers and sellers, most respondents (82 percent) were very satisfied with their real estate brokers/sales associates, and a majority (77 percent) of the sellers felt that the commission they paid their broker was “money well spent.” The survey also found that the majority of buyers and sellers (64 percent) were satisfied with the amount of time the process took, and most sellers (87 percent) will use a real estate professional again next time they sell their home.Clearly, these surveys point to the value of using the services of a real estate professional in the home buying and selling process. In a transaction that has become increasingly complex with the evolution of new financing twists and sales contract intricacies, the real estate professional is often the glue in holding all parties and details together. While technology has brought a wealth of real estate information-including property listings-closer to the consumer, buyers continue to find value in having a real estate professional help them through one of the biggest investments they will ever make-the purchase of a home. And sellers, for the most part, find the money they spend to have a professional handle their home sale, well worth every penny. Buyers and sellers responding to NAR surveys point to real estate professionals’ knowledge of the housing market and real estate practices as major factors influencing their decisions in selecting agents.

While there are plenty of real estate professionals to choose from, the best bet in terms of ethical, efficient and reliable service, is a REALTOR ®.. Nearly 730,000 of the 1.2 million active real estate licensees nation-wide belong to NAR, entitling them to use our registered mark, REALTOR ®. after their name. Unlike many real estate practitioners who are simply licensed by their state to do business, REALTORS ® have taken additional steps to become members of the local board of REALTORS ® and have agreed to act under and adhere to a strict Code of Ethics. This membership obligates them to be honest with all parties involved in a transaction, be it buyer, seller or cooperating agent.

Source: Georgia Association of REALTORS ®