With Home Prices On The Slide Again, Will Home Ownership Recover?

Home Prices Falling in Tampa
What do you do when Home prices keep falling?

The nation has been eagerly watching for signs of economic recovery ever since the beginning of the current financial downslide. Over the past few months there have been rumblings of a possible economic recovery but economists are stating now that we are already experiencing the beginning of a second drop of home prices across the country.

Analysts from Capital Economics are predicting that housing prices across the nation will continue to lose ground over the next 12 months. While it is possible that levels could tread water sufficiently to not decrease much, they claim it is also possible that prices could drop as much as an additional 20% in a worst case scenario. Paul Dales, from Capital Economics said, “It is becoming clear that the housing market cannot stand on its own two feet,” and that it is likely that housing prices will see a new low by next fall.

A big part of the problem with the market is that the economy has just not recovered enough to make up for the months upon months of hardship and delinquency that many homeowners are finding themselves in. While there has been an increase in jobs in many areas of the country, home owners are still struggling to catch up with the debts they have accrued over months of reduced employment or unemployment.

With so many homes poised on the verge of foreclosure and so many Americans still struggling to make ends meet, it is easy to see why it is so hard for the economy to recover. But with home prices continuing to slide, does it make sense to hope that the continued price reduction could lead to a rebound in home ownership numbers?

Sliding prices could, in fact, result in more homes being bought in the near future if employment picks up enough to support an increase in home buying and if prices decrease enough for homes to become affordable for the buyers who still have viable credit. No matter what the predictions though, only time will tell if we will see a recovery start within the next year or not. We can only hope that home owners who are struggling to hold on now can maintain that grip over the next few months.

(ArticlesBase SC #3628887)

Read more: http://www.articlesbase.com/real-estate-articles/with-home-prices-on-the-slide-again-will-home-ownership-recover-3628887.html#ixzz14kq2x91Y
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What is a Short Sale and How Does the Process Work?

Tampa Short Sales

What is a short sale?” is a commonly asked question amongst homeowners struggling to pay their mortgage payment. Word has gotten out that short sales can help borrowers avoid foreclosure. While this is true, the process is complex and requires authorization from the originating mortgage lender.

There is no simple explanation of what is a short sale. At present, no unified protocol exists, although lenders must abide by certain criteria. Not all properties or borrowers qualify for short selling their property. Nor, are all lenders required to offer this transaction.

Short sale criteria require borrowers to be a minimum of 31 days delinquent on their mortgage note. The appraised property value must be less than the balance due on the loan and borrowers cannot own assets which could be used to repay the debt.

The term ‘short sale’ means the bank allows borrowers to sell their property for less than they owe on their loan. Short sales are usually offered when all other methods to save the home from foreclosure have been exhausted. It is important to understand once a home has entered into foreclosure it is no longer eligible for short sale. Therefore, it is crucial for borrowers to contact their lender when they are unable to continue making mortgage payments.

Short sales are handled through each lender’s loss mitigation department. Once borrowers default on their loan, a loss mitigator is assigned to handle their account. This individual is responsible for assisting the borrower to resolve the delinquency. They do not approve or disapprove short sale requests. Instead they act as a mediator for the borrower and lender.

Mortgage lenders usually require borrowers to submit a short sale hardship letter describing events which caused delinquency of the loan. The letter of hardship is an important element of obtaining short sale approval and borrowers should take time to carefully craft it.

Loss mitigators prefer handwritten letters which include a detailed timeline of events, along with any action taken to overcome financial challenges. Lenders are more apt to grant approval to borrowers who lost their job or encountered medical problems than to those who engage in frivolous spending.

The short sale process takes between four and six months to complete. Borrowers will undergo a financial audit and are required to submit a myriad of documentation to the loss mitigator. Some banks require borrowers to have a buyer in place before granting short sale approval. Others will allow the borrower to list their property through a realtor.

When property is listed through a realtor, banks generally grant a grace period of a few months to locate a buyer. If the property is not sold within the specified timeframe, the lender will commence with foreclosure action.

Last, but not least, it is important to determine what type of short sale is offered through the lender. Two types of short sales exist: Deficiency Judgment and Payment in Full without Pursuit of Deficiency Judgment.

Payment in Full releases borrowers from repayment of the deficiency between the sale price and loan balance. Deficiency judgment requires borrowers to repay the deficit. This can be a substantial amount and take years to repay. Judgments remain on borrowers’ credit reports until paid in full.

(ArticlesBase SC #1131645)

Read more: http://www.articlesbase.com/real-estate-articles/what-is-a-short-sale-and-how-does-the-process-work-1131645.html#ixzz14ewNWYNI
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You are in the right market to Buy your New Home.

New Home Owner

It’s not uncommon for a first time home buyer to say to me, “Gosh, just last week I called you about buying a home and now I’m in escrow! How did this happen so fast?”

The answer is it didn’t. First-time home buyers start the search long before most even realize it.

Here’s what you can expect from your home shopping experience.

Figuring Out the Benefits

You should buy a home. That’s what you’ve been hearing from friends and family, right? So, by now you have likely already weighed the benefits and decided that home ownership was the best decision for you. That’s a major hurdle now passed. You are focused and certain. Good.

Defining Search Parameters

Almost 80% of all home searches today begin on the Internet. With just a few clicks of the mouse, home buyers can search through hundreds of online listings, view virtual tours, and sort through dozens of photographs and aerial shots of neighborhoods and homes. You’ve probably defined your goals and have a pretty good idea of the type of home and neighborhood you want. By the time you reach your real estate agent’s office, you are halfway to home ownership.

How Long Should It Take to Find What You Want?

In seller’s markets, often I show only one home. After all, how many homes does one family need? A few buyers will look for years, but buyers who do that aren’t motivated. A motivated buyer will find a home within two weeks. Most of my buyers find a home within two days.

Good real estate agents will listen to your wants and needs and arrange to show only those homes that fit your particular parameters. Your agent should preview homes before showing them to you as well.

How Many Homes Will You See?

Studies show that the your memory dramatically improves after consumption of carbs and slows upon consuming sugar. So, layoff the soft drinks and have a hearty meal of carbs before venturing out to tour homes. The average number of homes that I show to a buyer in one day is seven. Any more than that, and the brain is on overload. Therefore, don’t expect to see 20 or 30 homes; although it’s physically possible to do so, you probably will not remember specific details about any of them.

The “Red Shoes” Experience

Women will relate to this. Say, you need a new pair of red shoes. You go to the mall. At the first shoe store, you find a fabulous pair of red shoes. You try them on. They fit perfectly. They are glamorous. Priced right, too. Do you buy them? Of course not! You go to every other store in the mall trying on red shoes until you are ready to drop from exhaustion. Then you return to the first store and buy those red shoes. Do not shop for a home this way. When you find the perfect home, buy it.

How to Rate Inventory

* Bring a digital camera and begin each series of photos with a close-up of the house number to identify where each group of home photos start and end.
* Take copious notes of unusual features, colors and design elements.
* Pay attention to the home’s surroundings. What is next door? Do 2-story homes tower over your single story?
* Do you like the location? Is it near a park or a power plant?
* Immediately after leaving, rate each home on a scale of 1 to 10, with 10 being the highest.

View Top Choices a Second Time

After touring homes for a few days, you will probably instinctively know which one or two homes you would like to buy. Ask to see them again. You will see them with different eyes and notice elements that were overlooked the first go-around.

At this point, your agent should call the listing agents to find out more about the sellers’ motivation and to double-check that an offer hasn’t come in, making sure these homes are still available to purchase.

Making the Selection

I’ll let you in on a little secret. I generally know which home a buyer is going to choose, and I suspect most other agents operate the same way. It’s an intuition. But I make it a practice not to steer buyers, and I insist that buyers choose the home without interference from me. It’s not my choice to make.

Real estate agents are required, however, to point out defects and should help buyers feel confident that the home selected meets the buyer’s search parameters.

(ArticlesBase SC #671992)

Read more: http://www.articlesbase.com/mortgage-articles/first-time-home-buyer-671992.html#ixzz14cu8SD00
Under Creative Commons License: Attribution

Foreclosure Process in Florida

Florida is a judicial state, so therefore the court carries out the proceedings.  The foreclosure process in this state takes around 5 months. 

The foreclosure process begins by a court action being filed by the lender and a notice of pending lawsuit recorded.

The borrower is notified by mail, or person, by the lender.  The court can make a final ruling that the borrower is in default, if the borrower does not respond by a certain time.  The total amount owed by the borrower to the lender, and the sale date, can be ruled by the court against the borrower.

Under this state law, the lender is not required to notify the borrower before beginning the foreclosure process.  The mortgage or Deed of Trust may stipulate this though.  If the borrower can pay the total amount to the lender, even up to the sale date, he/she can stop the foreclosure.

After a court ruling, the sale date occurs generally around 20-35 days after.  The notice is published with the time, date, and location of the sale.  For two weeks before, the notice of sale is published once a week.

The sale is usually overseen by the clerk, and normally takes place at the court house.  Whoever makes the winning bid, must provide a 5 % deposit, and be able to pay the remaining balance by the end of that day.  If this does not occur, a new sale date is set not less than 20 day later.  A certificate of sale is given to the winning bidder.

Ten days after the sale, a transfer of ownership is given to the winning bidder, if there has been no dispute of the sale.  Most of the time, the borrower has no right of redemption, once the certificate has been issued to the winning bidder.

New Homes Tampa. Where are you?

We Got our New Home from Larry Buckalew

If you are looking for a New Home in Tampa, you can count on me! My name is Larry, as if you can’t read.. huh!  Anyways, I work for DR Horton America’s Builder and I am an Internet Sales Specialist. If you don’t know what that is, I’ll explain. Basically, I am here to answer any questions you may have about all of our many communities across Tampa and Sarasota.  I am not a sales person, but, I am here to give you the one-on-one personal attention you deserve to help narrow down your search to the right town, price point, and community. At DR Horton we have something for everybody and I will help you find it!

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