Homeownership - Are You Ready?

If you are thinking of jumping into homeownership, keep in mind these key points:

• Buyers are increasingly finding that the inventory of affordable, move-in-ready homes for-sale is low, making competition to buy higher than in years past.

• While short sales, foreclosed properties, or rent-to-own dwellings may take more time and involve more financial hoops, buyers should not rule out these properties completely.

• Although competition is high, bidding wars of years past where would-be buyers didn’t stand a chance unless they came in above the asking price from the start aren’t the case in most markets. However, buyers considering buying a foreclosure, should keep in mind that all-cash offers from property developers and other buyers are edging out bank-financed offers.

For any and all questions about the buying process, let me know, I am here, I can help!


Jane Loveday
Licence # 01439083
Pacific Sothebys International Realty
619-519-1615 Cell
http://janeloveday.com
http://www.facebook.com/realestatesandiego
http://www.twitter.com/sdrealestate
http://www.linkedin.com/in/janeloveday

What is a Short Sale?

When a homeowner owes more on his mortgage than his house is worth, and he cannot afford his payments anymore (loss of a job, interest rate hike, for example) one of his options is called a "short sale."

When lenders agree to do a short sale in real estate, it means the lender is accepting less than the total amount due. Not everyone qualifies for a short sale however, and if you are considering a short sale on your home, there could be drawbacks. For your protection, I suggest that all borrowers:

•Obtain legal advice from a competent real estate lawyer about a short sale

•Call an accountant to discuss short sale tax ramifications on a short sale

Although all lenders have varying requirements for short sales and may require that a borrower submit a wide array of documentation, the following steps will give you a pretty good idea of what to expect.

•Call your Lender

You will need to contact the short sale department and get the short sale supervisor's name - the name of the individual capable of making a decision.

•Submit Letter of Authorization for a short sale

The short sale request letter should include the following:


•Property Address
•Loan Reference Number
•Your Name
•The Date
•Your Realtors' name & Contact Information

and

•Hardship Letter

Make it honest, tell the lender why you are in such a financial hardship situation, it makes a plea to the lender to accept less than full payment. Lenders looking at a short sale understand, especially these days, how the economy can affect income and expenses.

Your Realtor will also provide your lender with paperwork to help with the short sale process, and it can take a while for the short sale to be approved.

You will need to find a buyer willing to wait through the approval process, sometimes there may be more than one buyer, the first offer will be submitted, while any and all others will be held by your Realtor as back-ups in case the first offer disappears during the process. This is quite common, and short sales are becoming the norm, we Realtors are very knowledgeable about the process, if you need help contact me and I will be able to help you.





Jane Loveday
Windermere Real Estate Agent
Licence # 01439083
619-519-1615 Cell
http://janeloveday.com
http://www.facebook.com/realestatesandiego
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Foreclosure Bargains are Harder to Find!

Homebuyers hoping to snag a really good deal on a foreclosed home are finding it increasingly difficult because supply is shrinking. Foreclosures are now down over a year ago, There are mixed signals for 2010: It's unclear how much of the drop in mortgage defaults is due to shifting market conditions, and how much is the result of changing foreclosure policies among lenders and loan servicers.

"Clearly, many lenders and servicers have concluded that the traditional foreclosure process isn't necessarily the best way to process market distress, and that losses may be mitigated with so-called short sales or when loan terms are renegotiated with homeowners," said John Walsh, DataQuick president. (http://www.dqnews.com/Articles/2010/News/California/CA-Foreclosures/RRFor100127.aspx)

Not only have attractive homes in popular neighborhoods already been snapped up, but also government help for distressed buyers is delaying more foreclosures. See http://makinghomeaffordable.gov/refinance_eligibility.html


Demand is driving up prices. Investors say typical prices have climbed from 75 percent of appraised value to 85 percent or higher when there are bidding wars on foreclosures. While California ranks 3rd among the States with the highest rates of foreclosure, (Arizona and Nevada are 2nd and 1st respectively) the amount of foreclosed properties currently available has dropped significantly, with the majority newly listed are short sales.


Jane Loveday
Windermere Real Estate Agent
619-519-1615 Cell
http://www.janeloveday.com
http://www.twitter.com/sdrealestate
http://www.facebook.com/realestatesandiego