I believe mortgage lenders have reached a critical stage and are no longer a viable option for buyers looking to secure mortgages for a new purchase. While people with massive down payments and outstanding credit scores may be able to get loans after jumping through 100 hoops, the general public is finding it almost to impossible to obtain financing for a home.
Underwriters are looking for ways to deny financing in fear of a future foreclosure. Normally strong candidates are scrutinized and rejected.
So what will become of these lenders who won't give loans? Wells Fargo Lawn & Care?????
If the lending continues to tighten, housing prices will continue to decline, more foreclosures will happen, and renting a property will be the new American way of life.
Thursday, September 25, 2008
Tuesday, September 16, 2008
More brilliant real estate advice
This is a piece of an article I found.....
LEASE-TO-BUY?????
People struggling to obtain financing for a home purchase are finding a viable option in lease-to-buy agreements, which enable renters to rent a property with the option to purchase the residence at the end of the lease term.
Buyers with poor credit find that this approach gives them an opportunity to improve their credit while moving toward home ownership; and sellers find that once-vacant properties now offer a stable cash flow. Now, a growing number of condominium developers are also testing rent-to-own programs in hopes of eventually getting units sold.
There is a problem for your typical owner wanting to do that in our area. Property taxes and insurance costs push the monthly payment higher than the rent they can obtain. In case no one has noticed, there is a glut of rentals because homes aren't selling. While developers may be able to use this option your typical homeowner cannot afford to pay the difference between what they can get and what their actual costs are.
LEASE-TO-BUY?????
People struggling to obtain financing for a home purchase are finding a viable option in lease-to-buy agreements, which enable renters to rent a property with the option to purchase the residence at the end of the lease term.
Buyers with poor credit find that this approach gives them an opportunity to improve their credit while moving toward home ownership; and sellers find that once-vacant properties now offer a stable cash flow. Now, a growing number of condominium developers are also testing rent-to-own programs in hopes of eventually getting units sold.
There is a problem for your typical owner wanting to do that in our area. Property taxes and insurance costs push the monthly payment higher than the rent they can obtain. In case no one has noticed, there is a glut of rentals because homes aren't selling. While developers may be able to use this option your typical homeowner cannot afford to pay the difference between what they can get and what their actual costs are.
Friday, September 12, 2008
Property Tax Break??? RIGHT!!!!!!!!!
Once again the powers in the state have fallen short. I wonder what happened to the property tax amendment and it's passage "igniting" (Governor Christ's words)the real estate market in Florida. And home owners insurance wiped out the small savings if there were any by far.
Baffled by your property tax assessment this year?
The market value of your home may have fallen, yet its taxable value increased.
Does that make sense?.
The cause is state’s “recapture” rule and that raises your property taxes.
The rule has been on the books since 1995 but had no noticeable effect until the state’s real estate market collapsed.
Lawmakers are expected to take up legislation to repeal the recapture rule next year.
Want to learn more....send me an email.
Baffled by your property tax assessment this year?
The market value of your home may have fallen, yet its taxable value increased.
Does that make sense?.
The cause is state’s “recapture” rule and that raises your property taxes.
The rule has been on the books since 1995 but had no noticeable effect until the state’s real estate market collapsed.
Lawmakers are expected to take up legislation to repeal the recapture rule next year.
Want to learn more....send me an email.
Thursday, September 11, 2008
Propaganda in real estate
This is from an article that I found being mailed to Realtors. The media machine drives public opinion by publishing what it wants people to believe...not always the truth.
From property taxes to market conditions...people are always being fed a line about what is going on and what is going to happen and how great or horrible things are going to be.
It's time for truth in real estate......stay tuned. This article has some actual facts but does not tell the entire story.
This fall could be a particularly great time for first-time buyers or those who have been out of the market for at least three years to jump in, say a variety of real estate professionals.
Here are the reasons why:
• Property prices are probably as low as they are going to go as the market stabilizes, thanks to the government takeover of Freddie Mac and Fannie Mae.
• Interest rates are likely to decline as Freddie and Fannie get government help.
• The Federal Housing Administration recently boosted its loan limits to $729,750 in expensive areas. It’s going to take some of that back on Jan. 1, 2009, when the loan limit shrinks to $625,500.
• The FHA allows down payments of as little as 3 percent, but that will rise to 3.5 percent as of Oct. 1. People scraping dollars together for a down payment should try to set their closing for the end of this month.
• The federal tax credit recently approved will shave $7,500 off a first-time buyer’s federal tax bill due April 15. Buyers who don’t owe tax will get the money as a refund. The government’s definition of a first-time buyer is anyone who hasn’t owned a home in the last three years.
From property taxes to market conditions...people are always being fed a line about what is going on and what is going to happen and how great or horrible things are going to be.
It's time for truth in real estate......stay tuned. This article has some actual facts but does not tell the entire story.
This fall could be a particularly great time for first-time buyers or those who have been out of the market for at least three years to jump in, say a variety of real estate professionals.
Here are the reasons why:
• Property prices are probably as low as they are going to go as the market stabilizes, thanks to the government takeover of Freddie Mac and Fannie Mae.
• Interest rates are likely to decline as Freddie and Fannie get government help.
• The Federal Housing Administration recently boosted its loan limits to $729,750 in expensive areas. It’s going to take some of that back on Jan. 1, 2009, when the loan limit shrinks to $625,500.
• The FHA allows down payments of as little as 3 percent, but that will rise to 3.5 percent as of Oct. 1. People scraping dollars together for a down payment should try to set their closing for the end of this month.
• The federal tax credit recently approved will shave $7,500 off a first-time buyer’s federal tax bill due April 15. Buyers who don’t owe tax will get the money as a refund. The government’s definition of a first-time buyer is anyone who hasn’t owned a home in the last three years.
Wednesday, September 10, 2008
Sales Report
August home sales by Realtors reported in the MLS were down nearly 20%.
They were also lower than the same period in 2007.
The slump continues, and buyer's are waiting to see if the market will drop further.
There are deals to be had in some areas, but owners are holding to their prices unless forced to sell.
The waiting game continues........
They were also lower than the same period in 2007.
The slump continues, and buyer's are waiting to see if the market will drop further.
There are deals to be had in some areas, but owners are holding to their prices unless forced to sell.
The waiting game continues........
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