Fear of Short Sales?

A short sale is simply a sale where the seller owes more than the home is worth. It is possible to do a short sale, but you must disclose this to the buyer and get the seller's lender to approve the sale. Read the article below:

http://realtytimes.com/rtpages/20080604_realtyviewpoint.htm

It is now a Buyer's Market

According to the Post and Courier (4/12/2008):

Many homes are for sale. +
Interest rates are low. +
Prices for homes are low. +
----------------------------------------------
=This adds up to a buyer's market.

Please read more at this link:

http://www.charleston.net/news/2008/apr/12/market_favors_buyers_after_year_slide37044/



If you have been thinking of buying a home, then now is the time:

There is a large selection of homes available in the tri-county area.

Many sellers are working hard to attract buyer's with incentives which include paying for closing costs, paying for homeowner association/regime fees, providing home warranties, and/or offering allowances (for painting, carpeting, or any upgrading/repairs which may be needed).

Do you have great credit?

If you do, then now is the time to call your mortgage banker/broker and to get qualified. If you don't, call your mortgage banker/broker and find out what you need to do to get your credit straightened out.

FHA Loans:
You will need to have 3% of the loan amount to put down on your home with an FHA loan. In other words, you can finance up to 97% of the home loan. See the link below for more info:

http://www.fha.com/fixed_rate.cfm

Charleston Area is seeing a rise in foreclosures...

According to the Post and Courier this past Saturday, the tri-county area is seeing an increase in the amount of foreclosures. The number of lender filed foreclosure proceedings during the first quarter of 2008 is 874 for residential properties . The data for Berkeley and Charleston counties shows an increase from 425 properties last year to 638 in 2008. Areas with higher end properties are being affected as well. Mount Pleasant, Johns Island, and the barrier islands are seeing foreclosures, which is not common for these areas (Post and Courier, 4/12/2008).

Most of this is attributed to a combination of government policies, a competitive real estate market, and new ways of qualifying buyers for mortgages. It is believed that many of the loans going into default are the result of ARMs (Adjustable Rate Mortgages) which are now resetting to higher rates. Many buyers were able to qualify for loans for properties they may not have been able to afford without using an ARM. In the Charleston area, as well as many other places in the country, home values were increasing so fast that many buyers bought properties using a variable rate in hopes they would be able to turn a profit. However, with the increase in inventory and the decline of home values many homeowners have found that they now owe more than their home is worth (Post and Courier, 4/12/2008).

Please read the article on the link below for more information.

http://www.charleston.net/news/2008/apr/12/home_foreclosures_soarrates_tri_county_a37033/

Thanks for reading,

Billy Howard
bhoward@pcreplus.com
http://www.billyhowardhomes.com/

Caution to homeowners who are facing possible foreclosure! From the Better Business Bureau

http://www.bbb.org/alerts/article.asp?ID=593

From Realtor.org--2 articles

http://www.realtor.org/press_room/news_releases/2008/4q_08_metro_home_prices.html
http://www.realtor.org/RMODaily.nsf/pages/News2008021503?OpenDocument

HOPE NOW--modifying "at risk" loans.

http://www.marketwatch.com/news/story/real-estate-weekly----jan/story.aspx?guid=%7BFCA228DA-0E92-4D35-A8CE-47B6BD7E552B%7D

Article about what the lending community is doing for homeowners who may be "at risk."

FSBO-If you decide to sell on your own!

http://www.ajc.com/homefinder/content/homefinder/stories/2008/01/17/agent_0120.html?cxntlid=inform

This is worthwhile reading. It is something I have covered before about preparing your home for sale.