Featured Real Estate News
Pending Home Sales Surge
November 3rd, 2009
Existing Homes Sales Surge as Home Buyers Use 8,000 Tax Credit
Pending Home Sales Surge to 3-year High
As home buyers scramble to take adavantage of the tax credit that was set to expire at the end of November, the amount of signed contracts to buy previously occupied homes in the U.S. rose for the eighth straight month in September. The National Association of Realtors said that its seasonally adjusted index of sales agreements rose 6.1 percent from August to 110.1. It was the highest reading since December 2006 and more than 21 percent above a year ago. Economists surveyed by Thomson Reuters expected the index would be level at 103.8.
With foreclosures continuing to surge, “an extended and expanded tax credit would help absorb this incoming inventory,” Lawrence Yun, the Realtors’ chief economist, said in a statement. “We’re clearly not out of the woods because an excess of homes remains on the market despite recent improvements,” he said. “Although current inventory is getting closer to price equilibrium, foreclosures will continue to enter the pipeline. An extended and expanded tax credit would help absorb this incoming inventory.”
Pending sales were up 10 percent in the West and 8 percent in the Midwest. They were up 5 percent in the South and were down 2 percent in the Northeast.
In the South, pending home sales increased 4.9 percent to an index of 109.7 and is 22.8 percent above September 2008. In the West the index jumped 10.2 percent to 143.8 and is 23.7 percent above a year ago.
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Senate Compromises on Home Buyer Tax Credit, Extended to 2010
November 2nd, 2009
The Senate has agreed on a compromise to extend and expand the home buyer’s tax credit that is set to expire at the end of November. Terms of the deal have been explained by Senators Chris Dodd (D-Conn.), who chairs the Banking, Housing and Urban Affairs Committee, and Johnny Isakson (R. Ga.), a former real estate professional. The compromise expands the tax creidt to non first-time buyers and also adds an increase to the income limits. Additionally the deadline has been extended to April 30, 2010.
Under the new proposal, people who have lived in a primary residence for five consecutive years would be eligible for a $6,500 credit when purchasing a new property.
Incomes limits will be raised to $125,000 for individuals and $225,000 for couples, vs. $75,000 and $150,000 previously.
The maximum house value rises to $800,000.
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North Carolina Housing Finance Agency
September 16th, 2009
First time homebuyers are being offered an incredible rate of 5.25% for a 30-year fixed-rate mortgage. If you qualify, you may be eligible for a Mortgage Credit Certificate (MCC). This federal tax credit can lower your income-tax liability, dollar-for-dollar, leaving you more money to use toward your mortgage. Second mortgages are also offered for up to $25,000. Through selected nonprofit or government agencies that offer deferred second mortgages, funds are available for the purchase of a newly constructed home. The maximum second mortgage amount is $25,000 per unit, or 20% of sales price, whichever is less. The minimum loan amount is $5,000 per unit.
Remember, buyers still have a lot of options available with FHA, VA, USDA, and conventional mortgages. Are you running out of time? A tax credit of up to $8,000 is available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. Act now and don’t have regrets later! Call us today to get started or complete the short form below for a call-back.
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Home List Prices Continue to Plunge
August 25th, 2009
A full 24 percent of homes for sale in the United States have had their price reduced at least once, a total of $27.1 billion in price cuts, according to a report released Thursday by real estate service Trulia Inc.
According to the Wall Street Journal, one in four home sellers have dropped the asking price on their home with an average price decrease of 10%. According to real-estate Web site Trulia.com. More than one third of sellers reduced their asking prices in the top three cities: Jacksonville, Fla.; Portland, Ore.; and Milwaukee, Wisc.
Luxury markets are experiencing a sharp increase in inventory. Homes listed at $2 million and up offered an average 14% price reduction. If you would like more information on homes that have experienced a large discount throughout the Mecklenburg and surrounding counties, please complete the form below or call us today at 704-559-5988 x4.
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July 2009 Foreclosure Rise
August 17th, 2009
According to data released by RealtyTrac, there has been a 7% increase in foreclosures in July. This is also a 32% increase over last year. “July marks the third time in the last five months where we’ve seen a new record set for foreclosure activity,” said James Saccacio, RealtyTrac’s chief executive officer. “Despite continued efforts by the federal government and state governments to patch together a safety net for distressed homeowners, we’re seeing significant growth in both the initial notices of default and in the bank repossessions.” Over 360,000 households with loans received a foreclosure filing in July – the highest since January 2005.
Notices of default, auction or repossession have reached nearly 2.3 million in the first 7 months of this year. “There are a slew of factors showing fundamental weakness on the demand side: tighter underwriting, job loss, investors who’ve been badly burned,” said Stuart Gabriel, director of the UCLA Ziman Center for Real Estate. “We have not seen the bottom of the housing market.” The Obama administration’s program to tackle foreclosure has not been effective so far. Analysts say negative home equity, due to falling home prices, is encouraging borrowers to default on mortgage obligations. “It has been more profitable to put a home in foreclosure than restructure the loan,” said Diane Swonk, chief economist at Mesirow Financial. “The only thing that helps is forgiveness of principal, and there is little willingness to do that.”
The National Association of Realtors chief economist Lawrence Yun states With low interest rates, lower home prices and a first-time buyer tax credit, we’ve been seeing healthy increases in home sales, which are a hopeful sign for the economy,”
What does that mean for our local real estate market?
It means that we will continually see more foreclosures, more short sales and an increase in higher priced foreclosures. If you would like a daily or weekly listing of foreclosures, please complete the form below.
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Bidding Wars for Foreclosed Properties
August 1st, 2009
Jay Butler, director of the Realty Studies program at Arizona State University, concurs with this view. “This market is about as abnormal as the hypermarket that we came out of a few years ago,” said Butler. Experts say that the bidding wars will impede stabilization of the housing market. Investors are knee deep into the bidding war, knowing some of the ingredients needed to win the bid. The two main ingredients? Cash with no contingencies. They pay with cash, prefer to close within 2 weeks, have tenants available if the property will be a rental or a rehab crew available if the property needs work. They ask for very little with the offer to purchase.
If you are interested in purchasing foreclosures. Some aren’t for the newbie foreclosure buyer. We had one foreclosure listed by 3pm with an accepted offer from the bank by 7pm that evening. Buyers have to move fast, have funding available or verifiable and understand bank addendums. Bank addendums often trump the standard offer to purchase contract, so read carefully before signing.
If you are a new buyer interested in reading and understanding some of the required documentation needed to be signed so that you can determine if buying a foreclosure is for you, give us a call at (704) 559-5988 X5.
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The Carolinas’ Resource for Short Sales, Auctions and Foreclosures
August 1st, 2009
Welcome to Charlotte North Carolina’s Real Estate Blog. Today’s Real Estate & Auction specializes in residential home auctions for lenders, new home builders and home sellers across the Carolinas.
We offer today’s buyer up to the minute property information on the best deals available.
We offer today’s seller a way to sell their home outside of the traditional listing method to create a competitive bidding environment among qualified buyers.
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Bank of America Relaxes Short Sale Policy
April 28th, 2009
Bank of America has stated that they are relaxing it’s policy of payoffs of short sales connected with second liens on homes facing foreclosure. This is good news for many Realtors and homeowners who have had an incredible amount of trouble completing a short sale transaction due to second lien holders demanding more money for equity loans and second mortgages.
Bank of America has been one of the least cooperative institutions to deal with. In the past, they have demanded 10 percent of what the homeowner owed on the equity line. If they did not receive it, they would not sign off on the short sale.
Bank of America is now asking for five percent of the sale proceeds on the short sale, net of realty commissions, closing and other costs. Bank of America feels that this change will open the door for more short sales to be processed and close.
Raffi Tal, CEO of Los Angeles-based I-Short Sale, Inc., one of the largest players in the field, says Bank of America’s new policy “will still jeopardize” many short sales that involve its second liens. 5 percent of an equity line can still jeopardize some deals if the mortgage is really upside down.
You will still need a strong negotiator to work your short sale deals. Bank of America along with other lenders still have strong rules regarding seller concessions to buyers, some require the buyer to pre-qualify with their institution.
The bottom line, work the numbers and see how this change can move your short sale from paper to the closing table.
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Finding Foreclosed or Short Sale Builder Homes
April 22nd, 2009
Any More CP Morgan Homes For Sale at Deep Discounts?
As you have probably heard, Indianapolis home builder, CP Morgan has had to go out of business due to the new home sales decline around the country. Previously ranked as one of the country’s 30 largest homebuilders, CP Morgan closed it’s doors late February 2009.
Owner Chuck Morgan has stated that the fall in sales in the real estate market made it impossible to stay in business. He believes more companies similar to his will continue to be swallowed up by the housing crisis across the nation.
CP Morgan had 27 communities in Indiana and 34 in Charlotte. Real estate experts said it was most likely that CP Morgan lost its line of credit.
Even though all CP Morgan says all homes completed will be honored by a residential warranty company, many wonder about the thousands of empty lots and unfinished neighborhoods.
More Builders in the Charlotte Area Close Doors and Foreclose.
Some builders such as D.R. Horton have held “Short Sale Events”, offering deep discounts on inventory. Over the past 3-4 months, we have witnessed more builders, and custom home builders showing signs of “leaving the area” while under distress with the current housing crisis. Short sales are also being performed on builder inventory. Extreme deep discounts on homes and model furniture are available.
Get on the List for Builder Distress Sale Information.
Have you registered for information on short sales? We have a weekly list available for all distress sales to include builder foreclosures and short sales. Register today to be included and get information on the many brand new homes available at EXTREMELY DEEP DISCOUNTS!
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Lender Communication, Getting to an Approved Short Sale
April 15th, 2009
Is there such a phrase as “approved short sale”?
Maybe for some it is when the lender has started the foreclosure process on a property. It may be for some when the homeowner calls the lender asking for a “short sale” package to include what will be needed to justify short paying the loan. For some Realtors, usually those unfamiliar with short sales, it is when a homeowner calls and says “I’m upside down on my mortgage and can’t pay it”, “please list my property as a short sale”. There are too many properties within our Multiple Listing Service with days on market over 200 days. The average foreclosure process within North Carolina is 270 days.
Establishing Your Short Sale Situation
As a homeowner, you need to establish that you are in a legitimate short sale situation. Evidence has to be shown that:
- The borrower can not make payments on the loan
- The house is equal to or less than the mortgage owed
- There are no other assets owned by the borrower
- There is a contract and valid and able buyer willing to purchase the property.
Is it Worth it to the Bank?
The bank has to see if foreclosing or accepting a short sale will result in a higher return. Values have been given to the bank by broker price opinions and desktop appraisals better known by Automated Valuation Modules. Different discount percentages will be given based by geographic location and foreclosure fees standardized by Fannie Mae by state will be inserted. These fees include taxes, closing costs, commissions, repairs, etc. An equity analysis and short sale analysis will give the bank an economic decision on the property.
If you would like more information on buying one of our short sale listings or see if your home is a candidate for short sale, please give us request information here. You can also call us 24 hours a day at (704) 559-5988.
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