Archive for July, 2010
Short Sell My Home? A Short Sale Can Provide Mortgage Relief and Opportunity!
There are millions of individuals across the country facing financial disadvantage and ruin. The two greatest disadvantages are both job loss, and carrying an underwater mortgage. Job loss is significant simply because with loss of an income, it often times results in loss of purchasing opportunities, or ability to maintain monthly financial obligations. With an underwater mortgage, considering this to be one of the largest investment opportunity most individuals will make within their lives, paying for a home worth significantly less than the mortgage note, can feel overwhelming. Should job loss occur along side an upside down mortgage, the stress can overcome many individuals. Short sale opportunities have changed the way individuals take care of their personal finances. Rather than pay for an over inflated mortgage, individuals now have a potential opportunity to sell their home for the current market price without penalty, or in some extreme cases, allow a homeowner to repurchase their home for the discounted market price. Under the Mortgage Forgiveness Debt Relief Act of 2007, sellers who participate in short sales, have the opportunity to structure any mortgage debt which has been forgiven, as excluded from annual tax obligation. This opportunity is currently available to homeowners until the year 2012. It is important to note that this can be an incentive for financial institutions to work with individuals, as it is rarely known, these institutions not only earn income on typical lending, some lending institutions can also earn income foreclosing on a home, as well as structuring short sales. In a rarer event, sellers can sometimes negotiate to repurchase their same home at a lesser value. Should your credit score along with financial situation allow, and a short sale become approved through your lender, you may have the opportunity to work through a local lending institution to secure a new mortgage to bid on your own home. This process requires more risk, as most lenders will only work with homeowners whom are not current on payment, however, the reward could turn out to be very beneficial to the home owner. Because short sales are not treated the same as a foreclosure on your credit report, you may qualify for a new mortgage right away through a separate lender. This opportunity is also time sensitive, so acting quickly is a must. A short sale record will appear as a negative mark on your credit report for eighteen months, as opposed to a foreclosure which can display for upwards of ten years. Financial planning should to be considered before your credit score is impacted. In the scenario where one homeowner was able to acquire a new mortgage through a local lending institution, and apply it against her current mortgage which was approved for a short sale to herself, she took advantage of her credit score while still in respectable condition, and applied for an automotive loan. She successfully applied and secured this automotive loan to purchase a newer vehicle. This was in anticipation of her credit score falling due to the coming short sale, but acting in time to take advantage of this opportunity. Understanding the situation and opportunities presented, may allow homeowners options to improve their financial footing. For further tips and secrets on mortgage relief, please visit http://mortgagerefinancetips.info. You will find articles that outline Short Sale Tips as well as mortgage refinance secrets, which may greatly improve your financial position. Article Source: http://EzineArticles.com/?expert=Jack_Simon
Administration’s Housing Bailout: The Big Disconnect
I spent the bulk of the morning sweltering outside the Washington DC Convention Center, as a few thousand sign-wielding housing advocates waited for President Obama's motorcade.
Obama Housing Bailout Under Attack
Criticism of the Obama Administration's mortgage bailout, the Home Affordable Modification Program, is reaching a fever pitch, and I know this because, among other things, the Administration itself appears to be mounting a defense.
Housing High Still Low
You would think that a 24 percent positive jump in any index, housing or otherwise, would have the analysts for that industry toasting recovery with bubbly champagne; not so much today.
A Beginner’s Guide to Investing in Distressed Homes
People often invest their money in the stock market, cars, gadgets, business and alike. But lately, probably due to the housing crash, most people have stopped thinking about investing in real estate. Buying and selling/holding properties, especially distressed homes such as foreclosures and short sales is one of the best investment methods in today's market ... for the exact same reason that most people are shying away from buying homes -- the market has tanked. Real Estate is without a doubt one of the best ways to invest your money when you properly research the market. Buying properties that are in need of rehabbing will most likely, be listed below market value and repairing the home can earn substantial equity. Then relist the newly repaired home back on the market and pull that equity back out. For real estate investors looking to rent out properties, the home does not need to be in bad shape, merely finding a home in a good location under market value will reap monetary rewards for years to come. Foreclosed homes are properties that have been turned over to lender because of the homeowners' failure to pay the mortgage. These "bank owned" homes are now put on the market by sellers that have only seen the home in pictures and are looking to sell the property in less then 180 days. This truly creates a motivated seller situation and a saavy investor who is an expert in identifying these properties has the potential to bring in more profit then during the real estate boom. When considering which distressed home to buy as an investment, it is important to remember location is a huge factor. Check into your area's unemployment rate, crime rates and economic conditions before choosing a designated area to start investing. The local housing markets' status is also an important point to consider in this business. Foreclosed homes for sale in markets that have not suffered sudden surges in price during the housing boom will be the most immune to drastic drops in real estate values and will offer the best chances of steady price increases. Look into the population rate of a particular city or state. Those areas that are highly populated like Florida, Texas, South Carolina, Indiana and Oklahoma bring in high chances of real estate success. Doing these things alone won't guarantee success to your real estate business. It will still depend on your skills and determination to triumph, but you these tips as a guide.
Foreclosure Crisis Up Close and In Person
Bruce Marks, who presides over these events claims they will see 60,000 borrowers over the next 8 days, and he also claims 80 percent of those borrowers will get modifications. Roughly 10 percent will get principal reductions, while most will get new interest rates as low as 2 and 3 percent fixed for the life of the loan.
Predicting Home Prices a Perilous Prospect
Don't be fooled by the little uptick in home prices in today's Existing Home Sales report from the National Association of Realtors. That was the message from the Realtors themselves!
Real Estate Agents Want BP Payback
"I'm hearing from them constantly." That's what Kenneth Feinberg, the administrator of a $20 billion oil spill compensation fund, told members of Congress. Them? Real estate agents and brokers. "They make a credible argument," he adds.
Mortgage Banking Takes a Beating
Independent mortgage bankers are making a lot less money on each loan they originate these days, and they're originating a lot fewer loans on top of that.
How to Invest in Real Estate through Your IRA — TAX FREE!!!
Check out this AWESOME 60 minute audio clip from Jeff Watson about how to Invest and even FLIP homes and commercial properties in your IRA .... and they are NOT talking about 1031 Tax Deferred Exchanges. CLICK HERE TO HEAR THE CLIP
