I don’t know, I just kind of gave up last fall. When someone told me it was hard to keep a blog up and have a fresh ideas day after day, I knew it was hard but I didn’t think I would go into brain freeze almost permanently. Well I did. I thought to myself I have to become more aggressive and try to get some reaction from folks who read this stuff. Well that didn’t happen and I thought I might as well get on to bigger and better things. I really don’t know what that means either.
In the final analysis I guess I had to ask myself the question; was I doing a blog for you or for me. For me, because at one time I thought I actually enjoyed writing . For you because I hope I could drum up some business while giving you some helpful information.
At this point I’ll just try to write about some things I am passionate about, which is cathartic for me. Maybe you will join in and let me know how you feel, but if you don’t that’s okay too. Because now I don’t feel the pressure to perform for anybody else but me.
So here goes….. Since I last wrote we have had the reelection of the President, the murder of 26 folks, 20 of whom were kids, a Pope resigned, avoided a Fiscal Cliff, did not avoid a Sequester, watched the rebound of the housing market begin, (which by the way I still don’t trust), QE infinity courtesy of the Fed and saw the Unemployment rate drop to 7.9%
Maybe its the Jesuit training in me but its smoke and mirrors to me. How the heck can we have an almost $17 trillion dollar deficit and growing each day, printing money like its drug to an addict and 1-2% Interest rates set for the next several years, and listen to all of those folks in Washington saying things are getting better. Who is going to pay for all of this insanity? You and me folks and our kids and grandchildren. That’s because the boys and girls in DC can’t get along. The cost of servicing that debt will eventually eclipse the total GDP of the entire country.
One thing is for sure. Regardless of your feeling of the housing market, the freaking mortgage rates are at an all time low. A $100,000 mortgage at 3.5% not including taxes and bank fees will cost $449 a month. Try renting for that kind of monthly payment.
Foreclosures are down, that’s good. Short sales are up, that stinks. No matter what the banks tell you, they still take months and I have had more than one buying client walk away. Because foreclosures are down and short sales take a while, we have a decrease in available housing. So Buyers beware, the sellers that are not underwater are going to start raising their prices. It’s already happening. And if Uncle Ben ever stops buying bonds and mortgages, rates will go through the roof.
Anyway, I feel better, that was a good start. It’s like when I talk to myself in the shower. It’s probably the most creative time for me.
I just need someone to turn up the temperature of the water.
Jan 1. Its spring time as far as I am concerned. The Spring Real Estate Market, that is. It was 20 degrees when I walked out the door, but I could hear the Robins singing. I know a lot of you are thinking “Can I sell my house? Whats the market like? What’s my house worth? Time to do a little research. First of all if you want to talk to someone about it, give me a call. Glad to listen first and then I’ll ask you some questions. But here thanks to the National Association of Realtors are some useful tips in getting started in thinking about this Short Sale Business. Also listen to the podcast on this subject if you are considering buying a Short Sale property. Email me with any questions at: firstname.lastname@example.org[audio:http://www.rutaramblings.com/wp-content/uploads/2012/01/Foreclosures-and-Short-Sales11.mp3|titles=Foreclosures and Short Sales]
What to do if You’re Facing a Short Sale
If you’re thinking of selling your home, and you expect that the total amount you owe on your mortgage will be greater than the selling price of your home, you may be facing a short sale. A short sale is one where the net proceeds from the sale won’t cover your total mortgage obligation and closing costs, and you don’t have other sources of money to cover the deficiency. A short sale is different from a foreclosure, which is when your lender takes title of your home through a lengthy legal process and then sells it.
1. Consider loan modification first. If you are thinking of selling your home because of financial difficulties and you anticipate a short sale, first contact your lender to see if it has any programs to help you stay in your home. Your lender may agree to a modification such as: Refinancing your loan at a lower interest rate; providing a different payment plan to help you get caught up; or providing a forbearance period if your situation is temporary. When a loan modification still isn’t enough to relieve your financial problems, a short sale could be your best option if:
2. Hire a qualified team. The first step to a short sale is to hire a qualified real estate professional and a real estate attorney who specialize in short sales. Interview at least three candidates for each and look for prior short-sale experience. Short sales have proliferated only in the last few years, so it may be hard to find practitioners who have closed a lot of short sales. You want to work with those who demonstrate a thorough working knowledge of the short-sale process and who won’t try to take advantage of your situation or pressure you to do something that isn’t in your best interest. A qualified real estate professional can:
3. Begin gathering documentation before any offers come in. Your lender will give you a list of documents it requires to consider a short sale. The short-sale “package” that accompanies any offer typically must include:
4. Prepare buyers for a lengthy waiting period. Even if you’re well organized and have all the documents in place, be prepared for a long process. Waiting for your lender’s review of the short-sale package can take several weeks to months. Some experts say:
When the bank does respond, it can approve the short sale, make a counteroffer, or deny the short sale. The last two actions can lengthen the process or put you back at square one. (Your real estate attorney and real estate professional, with your authorization, can work your lender’s loss mitigation department on your behalf to prepare the proper documentation and speed the process along.)
5. Don’t expect a short sale to solve your financial problems. Even if your lender does approve the short sale, it may not be the end of all your financial woes. Here are some things to keep in mind:
Reprinted from REALTOR® Magazine (RealtorMag.Realtor.org) with permission of the NATIONAL ASSOCIATION OF REALTORS®.
Copyright 2008. All rights reserved