Everyone looking to buy a home right now is thinking a foreclosure is the best alternative. In some cases it is; and others it is not. I wrote a blog yesterday talking about where to look for foreclosed homes and the types of foreclosures out there. One of the largest selection of foreclosures is Fannie Mae properties.
Fannie Mae properties are homes that the government has backed from various banks and institutions in order to keep the banks cash flow liquid enough to maintain home loans and interest rates at reasonable levels. So, when one of these homes that they have backed goes to foreclosure they in turn begin the process of selling it on the market.
There are a few options availble when you are looking to buy a Fannie Mae home. One is they have a website that lists all of their homes for sale. You can visit www.homepath.com and view a complete list of all Fannie Mae homes on the market currently.
In addition, you will see advertsied on their homes that they either qualify for homepath mortgage or homepath renvoation mortgage. What does this mean to the buyer? A homepath mortgage means that the home does not need an appraisal. The home can be purchased without an appraisal since it quailfies under their guidleines. The process is quicker and the downpayment requirement is only 3% for owner occupants. In addition, unlike FHA, you do not pay mortgage insurance. Not all banks participate in the program. So you need to check with your lender to see if they are a particpating lender for this program.
The other program is homepath renvoation mortgage. This is one where it is determined that the home in it's present condition is not suitable for a reasonable person to live in without some reparis being done. The reparis can be minor and cost a few hundred dollars or be major and cost thousands. But this program allows the prospective home buyer to finance the cost of the repairs into the mortgage. So, you are purchasing the home in the present condition with the cost of any reparis needed being added to that mortgage amount.
Just becasue you are purchaing a Fannie Mae home does not require you to use their mortgage option. In fact, you can buy a Fannie Mae home and use any type of financing you wish (as long as the house will qualify) for that type of finance option.
There are options availble to you when you are looking to purchase a foreclosed home and you need to be aware of the options availble to you. Not everyone will qualify for all the programs. However; not knowing is worse than knowing and not being able to.
Dave diCecco
Realtor/Broker
www.davedicecco.com
Tuesday, December 21, 2010
Monday, December 20, 2010
Where To Look For A Foreclosed Home For Sale
Today I talked with a few people who are in the beginning stages of looking for a home. They all asked about and wanted more information about foreclosures. As the market for these types of homes still increases buyers need to know how to go about looking at and purchasing a foreclosed home.
Currently in the Charlotte market area foreclosed sales make up about one third of all sales of homes. Not as dramatic a number as some would have thought. One of the biggest surprises is the ease of dealing with the bank and the process involved.
i highly recommend if you are going to purchase a foreclosed home hire yourself a buyer's agent. A buyer's agent will work for YOU and look out for your best interest in the transaction. The best part of it is the bank will pay them their fee and it cost you nothing.
With that, there are really three type of foreclosed homes on the market today. The first, and most popular one is the bank owned homes. These are homes the bank has taken through foreclosure and are reselling them to recoup some of their losses.
The second ones are the Governement owned homes through Fannie Mea and Freddie Mac. These are the two government back securites that purchased a lot of the bad loans from the banks so that the banks could start lending money again. They also buy a good portion of the mortgages out there to free capital for banks.
The third one is the HUD homes. These are homes that are owned by the federal government becuase the loans were backed 100% by the government when they took them out.
The process is really no different than if you were looking to buy a home from a seller who was not in foreclosure. The banks and the federal government advertise their homes on the market through a listing agent who will present the offer to the bank. The listing agent works for the bank and acts as the eyes and ears for the bank for the home. They can tell them the market conditions and the overall condition of the house.
The same websites you find the homes for sale by homeowners are advertsing the homes for sale by the bank. The difference is to know what to look for. This is where a Realtor can come in very helpful. You have access to the same information we do. We tend to know certain verbage that indicates a home is bank owned or not. Also, just becasue a home is foreclsoed does not mean it is going to be on the market for sale right away....
Dave diCecco
Realtor/Broker
www.davedicecco.com
Currently in the Charlotte market area foreclosed sales make up about one third of all sales of homes. Not as dramatic a number as some would have thought. One of the biggest surprises is the ease of dealing with the bank and the process involved.
i highly recommend if you are going to purchase a foreclosed home hire yourself a buyer's agent. A buyer's agent will work for YOU and look out for your best interest in the transaction. The best part of it is the bank will pay them their fee and it cost you nothing.
With that, there are really three type of foreclosed homes on the market today. The first, and most popular one is the bank owned homes. These are homes the bank has taken through foreclosure and are reselling them to recoup some of their losses.
The second ones are the Governement owned homes through Fannie Mea and Freddie Mac. These are the two government back securites that purchased a lot of the bad loans from the banks so that the banks could start lending money again. They also buy a good portion of the mortgages out there to free capital for banks.
The third one is the HUD homes. These are homes that are owned by the federal government becuase the loans were backed 100% by the government when they took them out.
The process is really no different than if you were looking to buy a home from a seller who was not in foreclosure. The banks and the federal government advertise their homes on the market through a listing agent who will present the offer to the bank. The listing agent works for the bank and acts as the eyes and ears for the bank for the home. They can tell them the market conditions and the overall condition of the house.
The same websites you find the homes for sale by homeowners are advertsing the homes for sale by the bank. The difference is to know what to look for. This is where a Realtor can come in very helpful. You have access to the same information we do. We tend to know certain verbage that indicates a home is bank owned or not. Also, just becasue a home is foreclsoed does not mean it is going to be on the market for sale right away....
Dave diCecco
Realtor/Broker
www.davedicecco.com
Friday, December 17, 2010
Is the Charlotte Housing Market Stabilizing For 2011?
This has been the question on everyone's mind for the past two years. When are we going to hit the bottom? When will prices start to stabilize and then slowly increase back up to normal levels?
Well to answer those questions is going to be purely speculative venture. Noone, despite their credentials, can predict what the future holds. Did anyone think the President would negotiate a back door deal with Replubicans? So, all we have to go on is the statistics and the trends that are showing right now how the market is doing.
Nationally, the news has done a great job of portraying a gloom market. But is that the case across the country? No.Certain pockets of the country are still feeling the effects of inflated home prices; while other parts of the country are stabilizing and some are seeing growth.
Charlotte Nort Carolina Real Estate market is one where home prices seem to be stabilizing right now. The trends are not the decrease that was seen over the past two years. There is still bumps in the road and there will always be bumps in the road to growth.
However; over the past six months home prices have pretty much stayed stabilized in neighborhoods in the Charlotte area. Some months have seen a spike and others a slight decline but average out to be along a flat line right now. Does this mean prices are going to rise in 2011? No. I cannot predict what the future holds for home prices. The economy and the road to recovery have a major factor in that.
But another interesting trend pointed out to me in a recent article was sellers lowering home prices. Of the 28 majpr markets that they tracked Charlotte North Carolina was one of only TWO markets where the percentage of sellers lowering their prices decreased from last year as of November 2010.
Those are two indicators. As companies are relcoating to the Charlotte area jobs are growing. Charlotte has been blessed with having the second largest banking captial in the Untied States outside of New York. Companies are relocating to the Charlotte area and creating jobs in turn.
That coupled with the flat line pricing and the amount of sellers decreasing their asking price are indications that the Charlotte market has seen the bottom and has only up to go from here. As long as the government keeps interest rates low the affordability ratio is extremely high and the demand will increase as people realize they can own a home for less than they are paying in rent right now.
So, if you are looking to buy in Charlotte right now...the time may be right. Home prices are at 2006 levels. Interest rates are at historic lows and job creation (though slowly) are starting to be created here.
Dave diCecco
Realtor/Broker
www.davedicecco.com
Well to answer those questions is going to be purely speculative venture. Noone, despite their credentials, can predict what the future holds. Did anyone think the President would negotiate a back door deal with Replubicans? So, all we have to go on is the statistics and the trends that are showing right now how the market is doing.
Nationally, the news has done a great job of portraying a gloom market. But is that the case across the country? No.Certain pockets of the country are still feeling the effects of inflated home prices; while other parts of the country are stabilizing and some are seeing growth.
Charlotte Nort Carolina Real Estate market is one where home prices seem to be stabilizing right now. The trends are not the decrease that was seen over the past two years. There is still bumps in the road and there will always be bumps in the road to growth.
However; over the past six months home prices have pretty much stayed stabilized in neighborhoods in the Charlotte area. Some months have seen a spike and others a slight decline but average out to be along a flat line right now. Does this mean prices are going to rise in 2011? No. I cannot predict what the future holds for home prices. The economy and the road to recovery have a major factor in that.
But another interesting trend pointed out to me in a recent article was sellers lowering home prices. Of the 28 majpr markets that they tracked Charlotte North Carolina was one of only TWO markets where the percentage of sellers lowering their prices decreased from last year as of November 2010.
Those are two indicators. As companies are relcoating to the Charlotte area jobs are growing. Charlotte has been blessed with having the second largest banking captial in the Untied States outside of New York. Companies are relocating to the Charlotte area and creating jobs in turn.
That coupled with the flat line pricing and the amount of sellers decreasing their asking price are indications that the Charlotte market has seen the bottom and has only up to go from here. As long as the government keeps interest rates low the affordability ratio is extremely high and the demand will increase as people realize they can own a home for less than they are paying in rent right now.
So, if you are looking to buy in Charlotte right now...the time may be right. Home prices are at 2006 levels. Interest rates are at historic lows and job creation (though slowly) are starting to be created here.
Dave diCecco
Realtor/Broker
www.davedicecco.com
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