Wondering how our National Mortgage Settlement $ are being spent? I found an interesting graph this morning.
National Mortgage Settlement Fund
The majority of the funds are going towards short sales. If you are having difficulty making your payments and do not wish to stay in your present home, a short sale is nearly always the best option. Please contact me for more information, or visit my website at AvoidForeclosureinJacksonville.com.
Here is a question that we as Realtors hear quite often:
My house has been on the market for several months with no offers. Should I consider a price reduction?
An excellent article from the National Association of Realtors appeared on their House Logic website. Though it was written several years ago, the principles remain timeless. Here are 6 signs that may be telling you it’s time to lower your price:
- You’re drawing few lookers
- You’re drawing lots of lookers but have no offers
- Your home’s been on the market longer than similar homes
- You have a deadline
- You can’t make needed upgrades
- The competition has changed
Read the entire article at House Logic.com.
Have you ever heard Realtors complain about short sales? There is endless paperwork, they take forever, no one at the bank returns their calls or answers their emails – the list goes on and on.
So, why do I love short sales? Because in my work, there is no more satisfying way to help a seller out of a distressed situation while helping a buyer find a really great house. Short sales are a win-win situation for both the seller and buyer.
For the Seller:
- Yes, there is some paperwork. You will be asked to furnish tax returns, bank statements, pay stubs, as well as a financial worksheet and a letter explaining your financial hardship.
- In a short sale, a seller does not take away any money at closing; nor does he have to bring any money to the closing (unless negotiated with his lender). If someone asks you to pay in advance to help you with a short sale, don’t do it. It is most likely a scam!
For the Buyer:
- Your purchase and sale agreement is negotiated between you and the seller, but will be subject to the seller’s lender approving the reduced pay-off. The time it takes for the seller’s lender (or lenders) to approve the short sale can take between 2-3 weeks and 9 months or more! If you need to be into a new home immediately, then a short sale may not be a good idea.
- It is important to work with a Realtor who understands the short sale process. You want to be certain that once accepted, your offer will be the only offer presented to the bank.
In summary: For a seller who wants or needs to sell and owes more on his home than it is worth, a short sale is almost always the best solution. Quite often, the seller is able to negotiate total debt forgiveness on the unpaid portion of his loan.
For a buyer who has a flexible time schedule, purchasing a home offered as a short sale can offer a great value and instant equity.
For more information on Short Sales vs Foreclosures, please visit my website.
Temperatures are heating up here in NE Florida, and so is the real estate market. Headlines everywhere report the good news:
Numbers are improving in local economy
Figures show housing purchases and prices are up
(Florida Times-Union, May 19)
More Americans expressing confidence in economy and home values
(dsnews.com, May 11)
Home prices show strongest gain in 6 years
(Jacksonville Business Journal, May 23)
A few reasons for optimism:
- Inventory is down
- Sales are up
- Median and average prices are up
- Building starts are up
Our to recovery is closing tied to the broader economy, and will come one step at a time. The recession has left many people underwater in their homes, and these distressed properties will continue to impact the market. But it is wonderful to finally hear good news, and we are excited to be busy again!