Is there a Silver Lining in all the latest Foreclosures and Doom and gloom in the Real Estate Market? Maybe...Have you heard about the most recent possible help you, as a delinquent homeowner, may have? Here is a synopsis, taken from Bloomberg News, highlighting the general conditions needed to qualify.
Under the proposal, mortgage servicers will work with borrowers to reduce monthly payments to 38 percent of their gross income, a threshold of affordability, by lowering the principal, reducing interest rates and extending the length of the loan term. The plan doesn't include money from the Treasury's $700 billion bank rescue and isn't mandatory for companies that received federal aid.
Conditions and Fees
Homeowners that qualify will receive notices about the program. Their loan modifications won't become final until they have made three consecutive payments, and there is no limit to the number of times a loan can be modified. The new payment will include all of the borrower's monthly housing costs, such as taxes and condominium payments.
Fannie and Freddie are paying mortgage servicers $800 to process each modification, which isn't available for investment or vacation properties. Fannie and Freddie will absorb the losses on loans or mortgage securities they own while investors in mortgage bonds guaranteed by the government-run corporations will bear a brunt of the losses on that debt.
So, if you qualify, you will receive a notice. Refinancing your home to 38% of your income will help you make those monthly payments, stay in your home and breathe a little easier! Basically, this percentage is what it "should" have been in the first place.
Maybe the Holidays won't be so bad, after all!
I took this photo about 6 months ago. It is a new home being built on a property that my Dad sold awhile ago in the Green Hill Section of South Kingstown. The original house was an older L-shaped ranch/beach house which we all miss! Apparently Green Hill is no longer a "beach" community of cottages. All the homes there are upscale. We do miss the old "neighborhood".
Looking for a large home for a large family? Or are you looking to rent out rooms to help with mortgage payments? Don't let this one slip by. Priced at a very low $115,000, you can click Here to see the virtual tour.
Four beds, full partially finished basement, vinyl sided, newer roof.
This is a bank owned home and will be sold as is. The kitchen needs updating and home requires minor tlc.
Call your Realtor or email Karenhurst@rihome.net
To all my friends, family and clients.
Happy Fourth of July!
Hope you are celebrating this important day of Freedom in the United States of America!
*clipart courtesy of Ace Clipart: http://www.ace-clipart.com/american-flag-clipart-01.html
Are you looking to buy a home in Rhode Island? Are you a first time home buyer without any savings?
It used to be that you could go to RIHMFC (Rhode Island Home Mortgage and Finance Company) and if you had decent credit, be able to borrow 100% of your mortgage and get help with closing costs. In the past couple of weeks, RIHMFC's criteria has changed. This is due to all the mortgage mess we have been hearing about in the news and all the foreclosures going down.
There are two schools of thought on buying a home with a 100% mortgage. One is that people should be "saving" for their own down payment and their own closing costs. The other is that many, many people will not be able to own their own home without this help.
I am one of those people who has an obsession for putting people into homes of their own. This is the reason I went into Real Estate! Nothing makes me happier than searching for a home, uniting someone with a good Mortgage broker and a great loan and then seeing them in their own home. In my opinion there is a psycological feeling of pride when someone actually buys a house. It changes their whole perspective on things. It is called "nesting". Both men and women have the nesting instinct.
The point of this post is simply to remind people that even though there are many changes going on in the mortgage industry, there are still many programs out there to get you into your first home. Don't give up! Call a Realtor, preferably me:) and I will advise you on what you need to do.
Most importantly in these turbulent Real Estate days, you need to have good credit, so make sure you pay your payments on time and try to clean up any charge cards or loans you may have.
If you are looking for a home in Warwick, Cranston, or East Greenwich, and need some help, I am here for you. Happy Hunting!
Incredible opportunity for a prequalified first time homebuyer! This is a bank owned home which needs very little. (mostly paint and cleaning). It has two beds and there are three finished rooms in the basement that could be used as bedrooms. There is a fenced yard and it is close to the Marinas in Warwick in a wonderful looking neighborhood! This house must be sold AS IS, but you will be amazed at this much house for the price which is at an affordable $178900. This will not last. Call me now for a showing. 401-301-6887
Private lot next to Pawtuxet River located at end of cul de sac. Newer windows, vinyl siding, roof and cement driveway.
Interior needs much work. Carpets, walls, floors, etc and basement also needs work.
This is a bank owned home selling AS IS with all offers to be accompanied by a prequalification letter.
Priced accordingly at $80,900! Ride by and email or call me! Home is located in Warwick, Rhode Island at 3 Byron Boulevard.
Have you ever wondered what are some of the best places to live in Rhode Island?
Choosing the right city or town is very important. You may have small children and need to know about the schools. You may be concerned about paying higher/or lower taxes.
You may want to know if most of the people there are in your own age group and if their incomes are compatible with your own.
There are many ways to find out if you are choosing the right city for you! With the Internet we can read blogs, search out homes from foreclosures to waterfront homes. We can look through virtual tours and send an email right from our desk.
One of the sites I have found to be helpful for data in choosing your home in Rhode Island, is located on Rhode Island Monthy. This is a magazine dedicated solely to Rhode Island and is well worth your while to check it out.
Here is the link to the data that Rhode Island Monthly has compiled regarding places to live in Rhode Island. If you are considering a move, then check it out.
I am interupting my usual Real Estate blog to address a situation brewing across the nation.
Apparently, not everyone realizes what the Patriots can and will do in this season of complete wins!
I guess they just have to win them all to PROVE to the doubting Thomas's, that they are UNBEATABLE. (Even on a bad day!!)
Here is a link to a doubting Thomas....I am not debating the Cats prediction, but the Chargers???
UPDATE!!! On to the Super Bowl!!!
If you want to pay your respects to the Patriots click here!
See you tomorrow night!
Today I was chatting with a nice young lady about purchasing her first home.
After the intial focusing on what she was looking for, where she would like to live, what her finances were and was she actively looking into finding a mortgage that was right for her, it occurred to me that she was waiting for me to tell her what my fee was.
Now this does not always occur to me because "I do not charge a fee"
Here is what goes on. First let me say that besides being a Broker, I am an Acredited Buyers Rep. This means that if you are looking for a house, I can assist you in not only finding it, but advise you of best places to go for a mortgage, give you helpful ideas about which mortgages are right for you, why you need the house inspected and places that you can call, how to make an offer that will be accepted or at least countered. I can give you loads of options, because this is my profession. If you have a question I will give you the answer. Now, why would I not charge for all this? Some Buyer Agents do charge in different areas of the U.S., and some right here in the Ocean State, but I do not. The reason is, most of the buyers' I work with are first time home buyers and they do not always have the finances to come up with a separate fee for a Buyer Agent.
Of course I need to make a living just like everyone else. Upon closing, I receive a fee for my services from the seller of the house. So there is no need to worry about paying a Buyer Agent! I actually thought, until my conversation today, that people simply knew this, but apparently it is not common knowledge. What I do is have a buyer sign a contract saying they will work exclusively with me for a prearranged amount of time. This way I know a buyer is committed to finding a house. If, after the prearranged amount of time, I have not found the right home, then we go our separate ways. There is no charge for my time for this either. The reason for this is I am pretty confident in my abilities to find what a Buyer is looking for! I feel that if I can't find it, it's not out there!
I hope this clears up any concerns for Buyers that would like to work with a Realtor, but do not think they can afford it.
Sigh! This picture is a definite portrayal of how I feel after the Holidays! Now its January 2008 and as a Realtor, I am expected to start the new year with a rush! The stats for 2007, especially in Rhode Island, were not good, as you all know. Rhode Island was second to Michigan in losing population. We were 8th in foreclosures. The mortgage industry has realigned and unless you have impeccable credit and a good work history, you can plan on paying much more in interest rates for a home. We are reading doom and gloom everywhere about the Real Estate Industry. I have been working with REO's, which is Real Estate Owned property. This means that the bank has bought back their interest in a foreclosed home. These homes are actually still selling due to the fact that they are cheaper then the regular market. However, there are so many of them, that the prices are actually driving down prices of what we call market value homes! This is a tough pill for Sellers to swallow. Many sellers viewed the equity in their homes as actual money! Real estate is very much like the Stock market. It is not actual money until it is in your pocket!
I was interviewed for a piece in Rhode Island Monthly last month. The advice I gave and still give is: If you do not have to sell your home now, don't! If you do have to sell it, make it pretty and price it well. There is a lot of competition out there, but this does not mean you have to give it away. Check with a Realtor and find out just what prices are doing right now and then price yours accordingly. Do not try to price it by what you paid for it, or what you refinanced it for. Picture yourself as the buyer and view your home with a keen eye. Would you be impressed when you first walked in? Is there any odor from animals? Is it clean? Why would someone want your house as opposed to the 4000 others out there? Remember, location is important, but price rules!!! If your home stays on the market for more than three months, even after you have lowered your price, it starts becoming stigmatized and even a good buyer will pass on it, thinking there is something wrong with it.
Now on the other side. If you are a Buyer looking for a deal and are qualified for a good loan, then I would suggest you also contact a Realtor and get your ducks in a row. The market will go down within this next year, but no so much that you can afford to wait forever. It will also start rising again, my guess, around mid 2009! Take a look around and figure out where you can get the most for your money. History dictates that prices will rise again, so do not miss out by trying to play the market!
Research is key to making qualified decisions. I spend many hours researching the housing market and while I do not have a Crystal Ball (actually I do have one:), my predictions are based on everyday knowledge. This is my career! Be careful who you listen to when you are anticipating one of the largest deals in your life!
