FYI « What's Cooking, Lake Norman?

{May 15, 2009} Buying Foreclosed Homes

Buying foreclosed properties is a hot activity for investors and would-be investors right now. If you are in the latter category, you should proceed with caution.

Though buying a home at the courthouse steps can be very risky, it can be done with considerably less risk when the bank buys it back and lists it with a real estate broker, according to News-Press.com. At least then you will be able to go inside and see what you are getting. Short sale properties are also an option.

If you do decide to bid on the court house steps, you should know that you should have cash available and ready in your account.

If you use a broker to buy a foreclosed property listed in MLS it is imperative that you speak to a loan officer first and get your finances in order. That will put you in a much stronger position to bid on the home.

{April 24, 2009} Good News for Lake Norman Home Sales!

We had our meeting at Coldwell Banker United, REALTORS this morning and finally got a little good news for a change. Showings are up this month, the highest they’ve been since June of last year! Inventory of homes is down by a smidge and solds/under contract homes are up to their highest point since October of last year!

I believe the tax credit to be at least partly responsible for this turn around. So much interest has been generated by this, making this a wonderful time to buy a new home (not to mention the awesome prices!)

This article explains a better picture of this turnaround: March Existing-Home Sales Slip, but First-Time Buyers Show Strength

A direct quote:

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said first-time buyers are crucial at this stage of a housing recovery. “The housing market always heals from the bottom up, and with large numbers of first-time buyers entering the market it will become a little easier for sellers to trade up or down, according to their needs,” he said. “Although homeownership builds wealth over the long term, buyers need to evaluate their options. In this market, buyers and sellers who use a Realtor® to represent them are making a smart move,” McMillan said.

{March 21, 2009} Making Home Affordable Program – Key Components

On March 4, 2009, the government released detailed guidance on the Making Home Affordable Program, President Obama’s housing plan designed to help 7 to 9 million families avoid foreclosure by refinancing or modifying their mortgages. The plan also strengthens the federal commitment to Fannie Mae and Freddie Mac (the government sponsored enterprises, or GSEs).

Here are the key elements of the Obama plan:

1. The Home Affordable Refinance Program. Under this program, eligible borrowers may refinance loans that Fannie Mae or Freddie Mac (the government sponsored enterprises, or GSEs) own or guarantee. The program can help homeowner-occupants who are current in making loan payments and have loan-to-value ratios (LTVs) above 80 percent but not more than 105 percent. Cash out refinancings are not permitted. The program ends in June 2010.

2. The Home Affordable Modification Program. This is a $75 billion program with lender, servicer, investor, and borrower incentives to make it work. The program is limited to homeowner-occupants who are at risk of default or already in default and who have loans at or below the maximum GSE conforming loan limit of $729,750 (or higher for 2-, 3-, and 4-unit properties). Loan modifications under the program may be made until December 31, 2012.

3. More Support for the GSEs. President Obama also announced more support for the GSEs, including doubling of potential Treasury investment from $100 billion to $200 billion for each GSE, to maintain their positive net worth. The plan also raises the cap on mortgages that the GSEs may hold in their portfolios by $50 billion to $900 billion.

The U.S. Department of the Treasury and the Department of Housing and Urban Development (HUD) also launched a website for consumers seeking information about the Making Home Affordable program at MakingHomeAffordable.gov.

Excerpted from the National Association of Realtors® – for more information visit: http://www.realtor.org/government_affairs/gapublic/home_afford_stability_plan_key_components.

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