Real Estate Really

RESPA Violation Alert

 
I personally have never had a lender or service provider ask or even suggest that a buyer should provide funds outside of closing that is not disclosed on the HUD.  However, I am noticing second lien holders becoming increasingly aggressive in their payoff requests and I've seen a marked increase in approval turn around times. 

Check out this article http://www.cnbc.com/id/34877347 from CNBC.  Understand it is a legal violation for any money to exchange hands that is not on your final HUD1 statement.   If any bank asks for this to be done it should be reported to RESPA authorities.  http://www.hud.gov/offices/hsg/ramh/res/respa_hm.cfm

Is it time for you to buy real estate? You Betcha!

Thinking of buying real estate but still unsure?  Prices have already begun to rise slightly in our area, so take advantage of the home buyers tax credit while you can and get a home while the prices are still within your reach.

Visit msnbc.com for breaking news, world news, and news about the economy

Foreclosures and short sales are great deals right now.  Give me a call if you would like to discuss possibilities.

Schemes and Scammers

 
IRS impersonation schemes particularly flourish during filing season. These schemes may take place via phone, fax, Internet sites, social networking sites and particularly e-mail. The IRS does not send taxpayers unsolicited e-mails about their tax accounts. 

Many impersonations are identity theft scams that try to trick victims into revealing personal and financial information that can be used to access their financial accounts. 

Some impersonations may be commercial Internet sites that consumers unknowingly visit, thinking they're accessing the genuine IRS Web site, IRS.gov. However, such sites have no connection to the IRS.

For additional information  see http://www.irs.gov/newsroom/article/0,,id=217794,00.html

Protect Yourself!

Location, Location, Location ?? Not Anymore!

If you've spotted an expensive home for sale  in that high-end neighborhood where you've always wanted to live, but still can't afford it without taking an interest-only loan, BEWARE!  As I’ve blogged before, “interest-only” loans are a bad idea. When these loans come due with balloon payments, it could have a significant adverse affect on the real estate market as a whole, not to mention those who can’t pay their mortgages.  It's time to change your focus from today's location to tomorrow's location! 

 

Odds are there are more affordable houses a little farther out – in the next neighborhood or next town.  Picture the value of that home in five to ten years – not it's value today -- when you are likely to sell it.   If you don’t have time to spend your weekends driving around to search these soon-to-be hot locations, contact me for help.   I’m up to date on the areas undergoing economic development and growth and can help with your location decision.  Contact me at dgreco@kw.com to get you on the road to your new future!!

It's a buyer's market out there!

It’s time to start looking to buy that house.  Keep it simple. Buy smarter. Buy cheaper.  Buy for the long haul.

Determine what you can afford. Mortgage lenders have tightened their standards and are requiring larger down payments. Typically, they want buyers to spend no more than 28% of their gross monthly income on mortgage payments, real-estate taxes and home insurance.

To figure out how much you can afford, use online calculators at realestatejournal.com, dinkytown.com or bankrate.com.

Be sure you also have cash for closing costs like legal fees and title charges. The total typically reaches 2% to 3% of the house price, but differs by state and mortgage product. 

Now more than ever, location is crucial, down to the neighborhood and street level. Focus on good school districts, crime statistics and any impending construction or public works that could increase or decrease the value of a home.

If you want to make your dollars count, contact dgreco@kw.com to assist you in assessing your needs, researching the local market, and finding your perfect home now! 

Interest Only Loans.....Again?

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Some of the major banks, like JP Morgan Chase, want to push President Obama to expand its mortgage-modification program to allow interest only periods on reworked loans.  This is their way to bring more homeowners into the initiative. 

Excuse me, but won't this only postpone defaults? What's next making homes affordable by allowing interest only loans again? 

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Real Estate Bubbles

Image via Wikipedia

Well folks, not a pretty picture! Looks like we may be heading for another housing bubble, even in the Northern Virginia area. The banks seem to be holding back on a very large inventory of foreclosed homes, and, equity sellers are still a little concerned about putting their homes on the market. This has resulted in a lower resale inventory. Right now we have predominately "short sale" houses listed on the housing market. Even those are getting snapped up quickly. All this has resulted in multiple offers and subsequently escalating sales prices. Sound familiar?

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MRIS Housing Trends Report

The Washington area's housing market showed signs of recovery in the second quarter with home sales up. Learn more about the Mid-Atlantic real estate market with this video commentary created especially for consumers by MRIS and Delta Associates.

Are You Upside Down?

If you live in Northern Virginia, especially in counties west of the Washington Beltway, and,  you purchased a home prior to 2005-2006, the value of your home probably dropped 20-50% .  If you were one of the homeowners who put the minimum down payment of 0-10%, you are now upside down by 10%-40% of the home’s value.  If you purchased the home with an adjustable rate mortgage or teaser rate, you may be wishing to refinance your mortgage to a fixed rate so.

We keep hearing from the media that refinancing your home is a solution and possible remedy to foreclosure.  but there are problems with refinancing your property that nobody is discussing and in some cases, has resulted in foreclosure.  Its just not as easy or workable as you may think in today’s market.  Between appraisal issues, new lender requirements , debt-income ratio issues, and higher credit score requirements,  refinancing a property is virtually impossible and generally a property will end up as a short sale or worse, a foreclosure.  There are some ways around this, but it may require cash upfront. 

Life happens and there are worse things in life than being upside down on your mortgage.  But if you are, don't wait until the situation gets worse.  If you begin to default, call your servicer immediately and talk to them about your situation.  Then go and find a REALTOR who can help you sort out your options.