Monday, March 30, 2009
Wednesday, March 25, 2009
I was inspired to blog today after reading my hotel copy of USA Today. I usually catch my news in small doses these days as the gluttony of bad economic news and discouraging headlines has been too much to take. Today however I was riveted to the newspaper because of three headlines.
“Areas of Economy Swelling with Jobs” was the first one that caught my eye on the front page. Hallelujah! How exciting to hear that there are sectors of our economy and geographic areas that are seeing growth. The areas cited in the article were health care, government, education, energy and mining. I guess this doesn’t come as a surprise given that these are areas of focus for the new administration in Washington. Many people that have recently lost their jobs will be turning to these industries, hoping that their skills will transition, or that they can attain new skills without too much downtime.
“Stocks Score Huge Rally on Hopes that Worst if Over” was the second attention grabber. This news has many people thinking that stocks might finally be on the mend. Monday’s rally was significant in that on some levels it doesn’t appear to be a blip. The rally had breadth in that all 30 stocks in the Dow saw increases, and as did all but 4 of the S & P 500. The rally seems to have some sticking power too – the best 2-week rally since the bear market took hold. And all 10 industrial sectors of the S & P 500 saw gains, indicating that industries are healing. This is all great news for people who have been seeing their retirement, college or down-payment funds take a beating. Hopefully this means there is public confidence in the government’s latest plan to “ungum the pipes”.
And finally, “Home Sales Rose a Sweet 5.1% in Feb.” This is the best news for homeowners trying to sell, as well as buyers who are dipping their toes back in the market after waiting out the bottom. Overall sales volume rose, meaning buyers are getting off the fence to the cheers of anxious home sellers. And prices fell sharply in many major markets, to the delight of buyers hoping to snap up a deal and enter the market in what will surely prove to be the best time to buy a home decades. Downward pressure on prices combined with the lowest interest rates I have ever seen in my own adult life – average interest rates for 30-year fixed conventional loans are at 4.89% - make home buying now a “no brainer” investment decision.
So again I ask the question – why are you still on the fence when you should be in your new yard? Is it because you have a house to sell that isn’t moving? I’ll write again shortly about the most important things a homeowner can do to position their home to sell. If you don’t have a home to sell then it is just downright ridiculous to think that these aren’t the first signs of stabilizing home prices. And even if we haven’t hit bottom yet, we are surely getting close. If you think you will hold on to the property for 2 years or more, then this is the time to be powerful, be BOLD! Go forth and buy!
If you appreciate this information and would like more, please let me know by contacting me at firstname.lastname@example.org. I am the Relocation Director here at Colorado Landmark. I am NOT a licensed real estate professional and I won't try to sell you anything. As the Relocation Director it is my job to assist people moving in and out of the Boulder/Longmont/Broomfield area in any way that I can. I stay abreast of the current trends and statistics and can help you dig up information, analyze your current situation, and make decisions about where you want to go.
Wednesday, March 18, 2009
A short sale is an agreement from your lender to accept less than the amount you owe on your mortgage and release the lien on your property so you are able to sell it and move on. The short sale process can take, on average, 4-6 months and requires a lot of patience, but there are steps that can be taken to make the process easier.
If you are a seller and you have fallen behind on your mortgage payments, tell your Realtor right away. As with all real estate transactions, it is important to work with someone who knows and understands the process. Your Colorado Landmark Realtor can give you a checklist of the items that should be completed and submitted to the bank upon listing your home. Once you receive an offer on your property, your Realtor will help you submit it to the lender along with other required documentation to help facilitate the sale as quickly as possible.
By the time they have reached the point of becoming delinquent with their mortgage payments, many sellers are tempted to just walk away from their mortgage and allow the bank to foreclose on their property. There are several reasons why this is a bad idea.
- A foreclosure can negatively impact your credit score by 250 – 300 points, and it will remain on your credit history for up to 10 years.
- A homeowner who has had a foreclosure is ineligible for a Fannie Mae backed mortgage for a period of up to 5 years, and has to disclose a foreclosure in the last 7 years on any loan applications.
- Having a foreclosure on your credit history can make it difficult for you to qualify for any other type of loan, and some employers will even use this information to re-assign or terminate employees.
Instead, if you take the time and effort to get your house sold through a short sale, it will most likely impact your credit score by only 50 or so points, and you are able to qualify for a mortgage and purchase another home after only 2 years. Not to mention that you can sell your home and move out of your neighborhood with dignity, and feel as though you did everything you could to protect your family’s future.If you are a buyer and you are interested in purchasing a property that is being sold as a short sale, you will also need to be patient. It is important to work with a buyers agent who has experience with short sales. New post coming soon: tips for buyers interested in short sale properties!
The short sale process can be stressful and frustrating, but working with an experienced agent will make it much easier for you every step of the way. At Colorado Landmark our real estate sales associates strive to be up to date on the latest real estate trends and market information. Our sales associates regularly pursue continuing education opportunities to reinforce their expertise and knowledge. If you have any questions or are ready to sell your home, please give us a call.
This blog entry written by:
Jennifer Fly, Broker Associate, Colorado Landmark Realtors