HUD HOME new on Market! Only $85,000!!!

HUD Home # 451-068996

Needs work

Great opportunity to own in Warwick, RI!

This home has a lot of potential. A large attic can be expanded to be another bedroom.

This home is FHA insured and qualifies for 203K Rehab loan.

Home is sold as is, and is available to owner occupants up to 2/12/2011

For further details see www.hudhomestore.com

To see a tour of this home, click here

Karen Hurst is the Neighborhood Listing Broker (NLB) for Hud Homes

TAX CREDIT MAY BE EXTENDED!!!!! President to sign Friday

Its looking pretty good that the tax credit will be extended until April 2010. Just waiting on the Senate and House votes...this one will also include a tax credit to people who have already owned a home for 5 years.

--------------------


WASHINGTON - Key Senate leaders agreed yesterday to extend a popular tax credit for
first-time home buyers and to offer a reduced credit to some buyers who already own
houses.

The tax credit provides up to $8,000 to first-time home buyers, but it is set to
expire at the end of November.

Senators agreed to extend the existing tax credit for first-time home buyers while
offering a reduced credit of up to $6,500 to repeat buyers who have owned their
current homes for at least five years, said Regan Lachapelle, a spokeswoman for
Senate majority leader Harry Reid, a Democrat from Nevada.

The home buyers’ credit would be available to individuals earning up to $125,000, or
$250,000 for couples, up from $75,000 for individuals and $150,000 for couples under
the current law, Lachapelle said.

The agreement was announced after the Commerce Department said sales of new homes
unexpectedly fell in September.

Lawmakers want to keep home sales from slipping as the economy struggles to recover
from the worst drop in prices since the Great Depression. Economists say a recovery
in housing is a key to rebuilding the confidence and finances of American consumers,
whose spending makes up 70 percent of the world’s largest economy.

The tax credits would be available to home buyers who sign sales agreements by the
end of April. They would have until the end of June to close on their new homes,
said a congressional aide, who spoke on condition of anonymity because he was not
authorized to discuss the deal.

Senator Christopher Dodd, a Democrat from Connecticut, has been negotiating for
several weeks with Senator Johnny Isakson, a Republican of Georgia, to craft the
extended tax credit. Senate minority leader Mitch McConnell, a Kentucky Republican,
agreed that most lawmakers support the homebuyer measures.

Senators were still negotiating the expansion of a separate tax credit that lets
money-losing businesses get refunds for taxes paid in previous years, providing them
with a source of cash.

Senators in both political parties were hoping to add both tax provisions to a bill
that would give people running out of unemployment insurance benefits up to 20 more
weeks of federal aid. The Senate could vote on the overall bill as early as today,
but lawmakers were still haggling over several unrelated amendments last night.

If the Senate passes the bill, it would go to the House, which passed a similar bill
extending unemployment benefits last month. House leaders have hinted they would
support extending the tax credit for home buyers.

Lawmakers didn’t release a cost estimate for extending the tax credit, though
similar proposals were projected to cost about $10 billion.

Industry representatives said uncertainty about the tax credit is hurting new home
sales. September’s decline was the first since March.

It takes 45 days to 60 days to close on a house, making it unlikely a sale made
today would be consummated by the end of November, said Lucien Salvant, spokesman
for the National Association of Realtors. “Buyers right now have an incentive to
hold off, not knowing whether the credit will be extended,’’ Salvant said.

Purchases of new homes dropped 3.6 percent last month to a 402,000 annual pace,
which was lower than the most pessimistic economist’s forecast, according to
Commerce Department figures.

Material from Bloomberg News was used in this report.

© Copyright 2009 Globe Newspaper Company.

Help for troubled homeowners

A new housing bill was signed into effect. Here is an excerpt explaining how it will affect people in trouble with their mortgages, from CNN.
As with anything else, there is a price to be paid. Read the entire article.
************************************************************************
NEW YORK (CNNMoney.com) -- President Bush signed a $300 billion housing rescue bill Wednesday aimed at helping troubled homeowners avoid foreclosure and supporting mortgage giants Fannie Mae and Freddie Mac.
After the law kicks in on Oct. 1, thousands of at-risk borrowers will be able to refinance their unaffordable old mortgages into new low-cost fixed-rate loans insured by the Federal Housing Administration (FHA).
The Congressional Budget Office estimates that 400,000 borrowers with $68 billion in loans may benefit from the program - but the bill allows for as many as 1 million or 2 million borrowers to participate in the program.
Here's what homeowners need to know.
Who's eligible?
Qualified borrowers must live in their homes and have loans that were issued between January 2005 and June 2007. Additionally, they must be spending at least 31% of their gross monthly income on mortgage debt to be eligible for the program.
They can be up to date on their existing mortgage or in default, but either way borrowers must prove that they will not be able to keep paying their existing mortgage - and attest that they are not deliberately defaulting just to obtain lower payments.
Before homeowners can get FHA-backed mortgages, they must first retire any other debt on the home, such as a home equity loan or line of credit. Borrowers are not permitted to take out another home equity loan for at least five years, unless it's to pay for necessary upkeep on the home.
To get a new home equity loan, borrowers will need approval from the FHA, and total debt cannot exceed 95% of the home's appraised value at the time.
How can I apply?
Borrowers can contact their current mortgage servicer or go directly to an FHA-approved lender for help. These lenders can be found on the Web site of the Department of Housing and Urban Development.
How does the refinancing process work?
This is a voluntary program, so lenders holding the original mortgage have to agree to rework a given loan before things can get started. The bill requires lenders to make major concessions, writing down the value of the loan to 90% of the home's current value. In areas where prices have plummeted by as much as 20%, that will mean a substantial loss for the lender.
But lenders won't sign off on a workout unless they think that they'll lose less money on that than they would by allowing a home to go through the costly foreclosure process.
Each loan will have to be underwritten by an FHA lender on a case-by-case basis. That means the banks will do a new appraisal to determine the home's current value, as well as examine and verify income statements, bank accounts, job histories and credit scores.
Based on that new appraised home value, the FHA lender must determine how much the original lender has to reduce the original mortgage, so that it will reflect 90% of the home's market value.
If the original lender agrees to the writedown, the new lender buys the old loan and takes over the reworked mortgage.
As part of the deal, the old lender writes off any fees and penalties on the original mortgage, including prepayment penalties, and accepts the proceeds from the new loan on a paid-in-full basis. Additionally, it pays the FHA an up-front premium equal to 3% of the mortgage principal.
What does it cost?
There should be little up-front costs for borrowers to bear. Loan origination fees will vary by lender, but these can usually be paid by the borrower over the life of the loan in the form of a slightly higher interest rate.
However, the refinanced loans do come with many strings. For one thing, borrowers are responsible for paying an insurance premium to the FHA guaranteeing the loan, which will be 1.5% of the principal annually.
Borrowers also agree to share any profits from future home-price appreciation with the FHA. To do that, they'll pay a "3% exit fee" of the mortgage principal to the FHA when they resell or refinance.
Plus, they'll agree to pay the FHA 100% of any profits they realize from higher home prices if they sell or refinance within a year. So if the original loan principal is $200,000 and the home sells for $250,000, the borrower will owe the FHA $50,000, minus costs.
After a year, borrowers will share 90% of the profits with the FHA. The percentage keeps dropping in 10% increments to 50% after the fifth year, where it stays.
What will I save?
Savings depend on what borrowers are paying for their present loan and where they live, but for most people it will be substantial, even after factoring in the FHA fees.
In areas that have sustained huge price drops, such as Sacramento, Calif., where prices have fallen by about 30% over the past year, some loans might be reduced by more than 40%.
Additionally, the FHA loans carry reasonable interest rates, which are fixed for the life of the loan, as opposed to a subprime adjustable-rate mortgage that can jump higher every six months.

House for Sale Warwick, RI New Price!

THIS HOUSE IS SOLD. EMAIL ME FOR OTHERS

38 Largo Road in the

Strawberry Field section of Warwick!

Cute 2 bed ranch in need of someone to take care of it! Fully fenced back yard w/shed. Good sized deck, attached garage, full basement, gas heat, everything you have been looking for!

This is a bank owned home. What that means to you is when you make an offer, have your prequalification letter ready and be prepared to buy AS IS.

This home needs TLC, ie painting, cleaning.

Priced reasonably at $167,000.

Email me for a showing at Karenhurst@rihome.net

Best places to live in Rhode Island

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.

What is a Buyers Rep?

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.

Rhode Island Real Estate 2008

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!

Holiday Greetings

I belong to an art class where once a week we all get together, chit chat and paint. With music playing in the background and in a small cottage right on the water, the inspiration to paint comes easily. Some are using watercolors, some oils and some acrylics. I have tried them all through the years. I was fortunate enough to major in Fine Arts in college, and also to have studied under Herman Itchavitch (deceased) during my lifetime. There is no better feeling than painting, to me. All my problems disappear as I concentrate on my canvas. Sometimes the paintings don't come out the way I wanted them to. (more often than not:) and these go into a bag. The bag is stuffed to overflowing right now. Other times, a painting will just click and even I am amazed at how it turned out! Those go on my walls at home. Years ago I used to sell them, but I actually found myself missing my own paintings and started re painting some of the scenes I had done. My point is that I am using the photo on the left for my Holiday Greeting because I painted it. It's not one of my best, but for those of you who received cards from me, you know that this was my Holiday Card!

For those of you who may not have received a card, this is it!

Happy Holidays, peace and health to all of you!

Holiday Stress

Are you feeling stressed out? Working or not, the Holidays can be a stressful time for many. Searching for that perfect gift and trying to not break the bank while you're doing it. Wrapping presents, planning feasts, visiting family and friends, cleaning your home, all contribute to the stress factor. All this while you are trying to live your daily (and probably already stressful) life!

Don't feel alone! You are not. Most people do get stressed during the holiday season. Add to this the New England cold weather and we are all dreaming of warmer shores.

There are no easy ways to completely alleviate stress, but there are some things you can do to make it somewhat less trying.

Make lists! This is important. Make lists of everyone you are buying a gift for. Then decide on the amount you will spend on each one. Then write down several possible gifts for each one that might fall in that price range. Start your shopping early. Theres no better feeling than having bought all your presents (and having them wrapped too) the week before Christmas.

If you are hosting the Family party, make lists for that also. Lists of who is attending, drinks, foods. Then plan your time accordingly. When you will shop, when you will cook, when you will call the bakery.

As you go through your lists of things to do, be sure to cross them off as they are done. Make the lists as long as you like and make each thing to do small. This way, you will have a feeling of accomplishment as you see so many items crossed off.

Lastly, and just as important. You have heard that you need to take time for yourself and you say, yeah, right! The truth is, you "can" take at least ten minutes a couple of times a day. In the morning and in the evening. Try to be somewhere alone and clear your mind. Do not think about anything at all. If you find this hard to do, then focus on something that brings you pleasure, a vacation that you took, or would like to take. The important thing here, in this ten minutes, is to NOT think about all you have to do!

Remember, there's only a couple of weeks left and you will have your Holiday memories!

Peace to all my friends and family during this Holiday Season!

Time to Buy

It really is starting to be the "Time to Buy" here in Rhode Island. Mortgage rates are lower and sellers are actually realizing that they need to lower their prices if they want to sell their homes.

If you are in the market for a home, get yourself to a good Lender and get pre approved. There are numerous homes on the market and you can negotiate a pretty reasonable price, especially as we go into the winter months.

So, if you are looking for a deal in Rhode Island Real Estate, you may just find one now.

Waterfront properties and surrounding areas have also reduced drastically. A home that you could barely look at a couple of years ago, is now in your price range. Yes, there are still some overpriced homes out there, but they will still be there next year and probably a lot cheaper.

Pay attention to this market, it won't last forever. Markets are cyclical, the prices will rise again. Have your Realtor keep you up to date on the homes that you are interested in and get the best deal for you, the Buyer!

The American Dream is still obtainable! Especially right now and in the next 1 or 2 years.

How to make money buying Real Estate

I guess everyone wants to know the answer to this. The problem is that everyone already knows the answer.

It's very simple, "Buy low, Sell High".

That is all you need to know to make money in Real Estate.

In the past few years, many investors tried to buy homes, but they miscalculated and bought High. Now they are reluctant to Sell low, which, while understandable, is creating a large supply of homes on the market.

Home buyers that planned on living in their home (Owner occupied) who bought in the past few years, also "Bought High". They are not inclined to "Sell Low".

All of this "emotional" buying and selling creates a down market.

This, coupled with the Mortgage Industries' problems this past year, have created a stagnant market.

Rhode Island Real Estate has been in a turmoil in the past few years. After the Credit Crisis of the late 1980's and early 1990's the market started on an incredible upswing. Unless you have been living in a cave, you had to have noticed the High prices of homes. Homes were selling so fast that bidding wars were everywhere.
Of course, you knew, and so should everyone else have known, that this would not last.

Now, the market has been steadily declining. Homes bought in 2005 no longer command the price they once did and have actually dropped. Tax assessments in most cities have continued to rise and some are now assessed at over the Market Value of the home.

The market will not remain stagnant for long. It has to move. Figure it out for yourself. Which way will the Market go?

82 Fuller St, Warwick, RI, $198,900

Here is your chance to get into a BRAND NEW HOME in Warwick for an unbeatable price!


This home has been totally rebuilt from top to bottom, includes an extra lot, central air, brand new hardwoods and wall to wall. Everything is new and ready to move in.

This is a perfect starter or empty nester home. It has two bedrooms, storage in the attic, a laundry area with closet space, vinyl sided, new roof, all new everything! You cannot go wrong, there is absolutely nothing to do but move right in.



Don't wait, email me now!


Click for Virtual tour of this home.

Internet Technology

I do not consider myself particularly tech savvy. I can spend hours and hours looking up different things and ways to do things on the web and then promptly forget them as soon as I start something else. However, I do have a blog or two or three:) Does this make me ahead of the game? Don't know. I believe that in the near future, blogs will be as old hat as emails and we will be on to something new. Meanwhile, there are so many things I can use my blogs for as a Realtor.

One, I can upload photographs and listing information that can be read instantly worldwide! That alone is a major tool for a Realtor!

Two, I can write whatever I feel like writing any time I feel like writing.

Three, I can have as many blogs as I want. One for every little interest. I could even have one for every listing if I wanted to.

Four, I can publish an invitation to all my friends via one of my blogs and they can all respond instantly. Blogs are almost better than email, except they are not private.

I can also share photos, link to other blogs or websites or quotes, the list is endless. I seriously do not know how I existed before blogdom!

Please take a moment to puruse my listings on this blog and email me if you have any interest.

Also, if you are looking to buy in Rhode Island, drop me a line or comment here, if you like.

Why Isn't my Home Selling?

For the many, many home owners out there with their homes languishing on the market and wondering why their home is not selling. Here are some tips. Top of the line tip: Your house is overpriced! Whether you are pricing it yourself or you have a Realtor, look at the actual comparables of houses that sold in the last three months that are close to your neighborhood and similar in style, size and condition to your home. Next, check out what is also for sale in your neighborhood. Put yourself in the buyers seat and look at all the homes for sale. Why would they choose your house?

After you are satisfied with your price, you now need to look at the "appeal" and condition of your home. Does it show well? When someone drives by, do they think "That's a nice house"? Or do they not notice it at all? Or worse, do they think "what a rat trap"? All these thoughts are what makes a buyer automatically put a "mental price" on your home. You want them to hear the price and think "What a great deal"! I need to move on this one.

And last, but not least, a sign in front of the house, while it will catch some buyers, is not the only thing you should be doing to advertise. If you have a Realtor, then he/she will automatically be doing everything possible to get your home advertised, but if you are doing it on your own, you need to advertise everywhere you can, both on the internet and in local classifieds.

While this is not a "standard" buyers market. (The prices have not gone down enough) It is definitely not a sellers market and you need to do whatever you can to promote your home. Happy Selling. Feel free to email me with your questions/concerns.

Making Realty a Reality

Great family home in West Warwick, RI PENDING!!!

3 Bedroom home for sale in West Warwick, Rhode Island

This is a Bank Owned home priced under normal market value, waiting for your personal touches. It needs a minimum amount of work. Painting, etc.... Pull up the rugs and expose hardwoods. Make this your new home with your creativeness and build some sweat equity. Offered at $190,500. Bring prequalification letter and make an offer.

Check out the Virtual tour

Warwick home for sale $215000

Totally rebuilt home, in the heart of Conimicut, Warwick, Rhode Island

Builder spared nothing and includes extra lot. Move right in, like Brand new!

Please go to this link to see a Virtual tour of this delightful home with Central Air and hardwoods. See Virtual Tour

Rhode Island Real Estate Buyers get Ready Now!

Spring is here and as most people know, a lot of homes are going on the market. Homes "look" better in the spring and its more fun to shop for a home when there's no snow on the ground. If you are looking for a home, I would advise you to get started now. You need to get yourself approved for a mortgage, find out how much you can afford and get looking. If you want to work with a Realtor, start looking for one you feel comfortable with, who will take the time to find out what you want and spend some serious time actually looking for your new home! Don't be discouraged by all the news you may have been hearing in Rhode Island Real Estate, about sub prime mortgages, foreclosures, stagnant markets....This is the time to find some good deals. Yes there are a lot of foreclosures. Yes there are a lot of houses on the market and yes, the 100% loans are going through a tough time. There are still great programs out there for you and a much wider spectrum of homes to choose from..So find a Realtor and start looking! Rhode Island Real Estate is hopping! Make sure you are ready. I have buyers now that are already approved with letters in hand. We are ready to make an offer as soon as we see the "right" home. Don't be left out of the game by not having your letter ready. Know your market and be prepared. This won't last forever!

Rhode Island house hunting

There has been a great deal of commotion lately regarding the Mortgage Industry. Websites have been set up to keep track of all the Companies that are going out of business due to poor lending practices.
What does this mean for you? If you purchased your home in the past 2-5 years and used a creative mortgage, ie: arm, interest only, even some no downpayment mortgages, then you may be one of the many hurt by these latest happenings.
You may have heard about the increasing amount of foreclosures in Rhode Island. Well some of this is due to these formerly mentioned lending practices. I am not going to go into who is to blame for this, because ultimately, it falls on the consumer to pay attention to his/her own finances. However, I believe that, at times, a borrower tends to think that the Lender "would not give him a loan if he could not afford it".
This, as you may now be aware of, is not true.
If you or someone you know is in this unsatisfactory position, and depending on how long and other factors, you need to address the situation as soon as possible. Don't wait until it's too late. The last thing you need is to lose your home. The lending laws are in the process of changing, but it will take time for the results to be seen.
I had a call the other day from a young girl who bought her home two years ago (I was not her Realtor:). She applied for a mortgage and was approved for an interest only mortgage for three years. After the three years the payments would change to include the principle and a higher interest rate. Basically her payments will probably triple. Now, she says she cannot even afford the original "interest only" payments. She called me because she had seen a foreclosed home I had on the market. I had to explain to her that she probably had no equity in her home because the market in Rhode Island had been stalemating. There really wasn't anything I could do for her, other than try a short sale, but she was still thinking she could "switch" houses. She is sadly, out of luck.
Please, please, please, when you are looking for that new home, do not get so caught up with the dreams that you lose track of Reality! You probably know way before you get to the loan application what you can really afford. Don't forget it!