DAILY REAL ESTATE NEWS | FRIDAY, NOVEMBER 18, 2011
The U.S. House and Senate yesterday restored FHA loan limits to the level they were at before they were allowed to expire at the end of September. As a result, the limits will rise to 125 percent of the area median home price from 115 percent, up to a maximum $729,750 from $625,500. NAR estimates that several hundred counties where FHA loan limits fell at the end of September will now rise back up to the previous level.
“The reinstated loan limits will help provide much needed liquidity and stability to communities nationwide as tight credit restrictions continue to prevent some qualified buyers from becoming home owners and the housing market recovery remains fragile,” said NAR President Moe Veissi in a statement released last night.
President Obama is expected to sign the legislation shortly. The restored loan limits are in a broad-based bill that includes funding for a wide variety of federal operations and programs.
The maximum conforming loan limits for secondary mortgage market companies Fannie Mae and Freddie Mac also expired at the end of September, but lawmakers did not include a restoration of those limits in the bill. As a result, conforming loan limits will remain at 115 percent of the area median home price, up to $625,500.
Once President Obama signs the bill, the limits will go into effect. FHA will release a mortgagee letter to its approved lenders thereafter, containing a list that’s been updated to reflect the new limits. NAR analysts say it will take the agency a short period to update its database and release the mortgagee letter, maybe a couple of weeks.
The funding bill also extends the National Flood Insurance Program (NFIP) until Dec. 16 to allow lawmakers time to consider long-term authorization of that program, which is an NAR priority.
Monday, November 28, 2011
Wednesday, September 7, 2011
Staten Island Real Estate - Virtual Tours are a MUST!
As a Sales Manager of a Real estate company, I know how important it is to have your listing noticed in the marketplace. Realtors have a really good tool to use.
Virtual Tours offer up a window of opportunity for to the seller, the buyer and also the Realtor. Video stills will provide buyers with not just a snapshot of your home, but provide flow from room to room. When done correctly, and with fair to good quality photos or movies, buyers can get a much better perspective of the property so that they can choose which home they might want to see in person.
Although I'm not a Virtual Tour expert, I have done enough of these tours for my agents to know that they can be done at no cost, and with proper staging look like they have been done professionally.
I know that not every house listed is Virtual Tour material at first, but most can be if a little effort is put into it. I'm amazed how many really beautiful homes have no tour visible to the buying public, especially now that Realtor.com and other real estate websites offers a link from your local MLS.
Buyers today shop from their computers for just about everything, house buying by searching online is at the very top of the list. This is where most buyers start their search, so would'nt it make sense to go with a tour of your home
Visit: statenislandnyhomes.com (link here)
V.I.P. Real Estate will create a masterpiece for sellers that can help sell a home faster.
Friday, August 19, 2011
Short Sales | Are They Good or Bad?
Lots of people get mixed up when talking about a short sale.
Unlike bank foreclosures, where the homeowner defaulted on the mortgage and the bank has taken back the property, a short sale is when the homeowner still has control of the property, but is seeking relief from the total mortgage balance due the bank.
Short sales usually are a result of the homeowner being underwater (meaning more is owed on the mortgage than the property is worth), and the market cannot recapture sufficient funds from a sale to pay the balance.
It can also be the result of financial hardship, a job loss, medical bills, or over borrowing from additional mortgages on the property. Government liens can also reduce the amount of money settled from a short sale thereby leaving less money for the mortgage balance.
In most cases, a homeowner seeking short sale relief, is still occupying the property, but is probably applying limited amounts of money to expenses. And although the mortgage is still running, short sellers are known to stop paying many bills and even their mortgage payments if things are that bad. Some owners have been known to stop making mortgage payments, so they can prove that they’re really in a financial bind. This does not help their situation as penalties are added into the mortgage balance, thereby making the amount due even greater.
The real story behind a short sale property is that the burden to get agreement from the bank to take less than the amount owed it, is on the homeowner and not on the bank. To protect the bank, there are short sale documents required by the bank, which must show that 1), no proceeds from the sale are going to the seller, and 2), that the seller has no assets to make up any shortfall. This is a gray area, due to the fact that the information between both parties is subject to honesty and verification. This issue itself is a prime reason that short sales can take a lot of time to get approval from the mortgage holder.
Many sellers just want to get away from a house, and think the short sale route is the way to go. It’s not that simple. If a seller uses the underwater situation to get a bank to take less, it usually has to be proven that the property’s overall value is verified through the appraisal process. If the value is greater than the amount being negotiated between the owner, the bank and the buyer, the bank will balk at a sale under these conditions, and want the property sold for more. This happens more or less depending on whether the area is showing a rise or decline in selling prices. Short sales don’t mean a house has to sell for less, it just means the owner will have less to give the bank, becoming a short sale.
Short Sale transactions can be filled with potholes, especially for the buyer. This is due to the fact that a buyer is negotiating not only with the homeowner, but the bank as well. The homeowner may be happy with the sales price, but the bank may not. Thereby, the process begins.
1. It can take a long time finalize a short sale.
Normally, when you make an offer on a typical house, you'll hear back within days, or even hours. But banks move very slowly these days because they are overloaded with cases. You might wait 30 to 60 days for a response, perhaps longer if there's a second mortgage on the property and therefore a second bank. The total process can easily take as long as six months from start to finish. "For someone moving a family or relocating that kind of timeline is incredibly unrealistic”.
2. Your offer can't be contingent on selling your current home.
Banks generally won't accept offers on short sales if they're contingent on selling your current house to get the funds you need. "Even if the buyer is already under contract, there are just too many things that can go wrong." So unless you're a first-time homebuyer, or you don't need the equity from your current home, or you're a real estate investor, it's unlikely that you can make a short sale work for you.
3. It's an as-is sale, or maybe not.
Banks also typically won't consider short-sale offers that have inspection contingencies in them. Repairs usually have to be worked out between the buyer and seller beforehand. So a buyer should do a house inspection before paperwork is sent to the bank. A buyer could spend $500 on the chance that a deal acceptable to all can be made. It’s the risk the buyer takes, and you probably wont get the homeowner to reimburse you for your expenses if the bank rejects the deal.
As long as you're prepared for these hurdles, you may just land yourself a bargain, or not. There’s no guarantee that because you bought a short sale, that you saved a lot of money. But make sure to work with a Realtor who knows the ins and outs of the process and can protect your interests throughout the negotiations.
Short sales aren't necessarily identified on the Internet, but local MLS data usually indicates that the property is a short sale. You need to ask your agent whether a house is a short sale before looking at it.
If you find a house that's a short sale, and you just have to have it, make sure to get yourself a mortgage pre-approval -- another short-sale requirement. Work out your offer with your real estate agent, allowing for give-and-take negotiations. Don’t low-ball too far below the asking price, because your probably going nowhere with that.
When the bank finally replies, it will more than likely counter with a value they or their appraiser puts on the property. Offer them somewhat less than that, and work from there. You’ll know what you feel the house is worth to you, and that’s your purchase price.
Sometimes you will hear that it is a “pre-approved short sale”. This means that somewhere during the listing history, there might have been negotiations that arrived at an agreement price, but didn't come to closing. That number might remain the same, but you cannot always depend on it. Banks periodically update their value conclusions without anyone knowing, and raise the bar on the property.
Your agent can put language in the offer letter stating that if you don't have a response by a certain date (perhaps 60 or 90 days out -- however long you feel like you can wait), you have the option of retracting the offer. That gives you an out, just in case. However, because many short sales fall by the wayside, lawyers have been known to charge an up front non-refundable deposit to represent you in a short sale contract, just in case they have nothing to show for their efforts.
Short Sales are a way of life in these economic times. They can be good, or bad. Because each short sale property has it's particular issues, there is really no way to determine the outcome. But what can be of great use to a buyer, is they the work with an agent with short sale experience. This type of agent can help cut through some of the obstacles and make the process easier.
Need an experienced short sale agent? Let us help. (link here)
Unlike bank foreclosures, where the homeowner defaulted on the mortgage and the bank has taken back the property, a short sale is when the homeowner still has control of the property, but is seeking relief from the total mortgage balance due the bank.
Short sales usually are a result of the homeowner being underwater (meaning more is owed on the mortgage than the property is worth), and the market cannot recapture sufficient funds from a sale to pay the balance.
It can also be the result of financial hardship, a job loss, medical bills, or over borrowing from additional mortgages on the property. Government liens can also reduce the amount of money settled from a short sale thereby leaving less money for the mortgage balance.
In most cases, a homeowner seeking short sale relief, is still occupying the property, but is probably applying limited amounts of money to expenses. And although the mortgage is still running, short sellers are known to stop paying many bills and even their mortgage payments if things are that bad. Some owners have been known to stop making mortgage payments, so they can prove that they’re really in a financial bind. This does not help their situation as penalties are added into the mortgage balance, thereby making the amount due even greater.
The real story behind a short sale property is that the burden to get agreement from the bank to take less than the amount owed it, is on the homeowner and not on the bank. To protect the bank, there are short sale documents required by the bank, which must show that 1), no proceeds from the sale are going to the seller, and 2), that the seller has no assets to make up any shortfall. This is a gray area, due to the fact that the information between both parties is subject to honesty and verification. This issue itself is a prime reason that short sales can take a lot of time to get approval from the mortgage holder.
Many sellers just want to get away from a house, and think the short sale route is the way to go. It’s not that simple. If a seller uses the underwater situation to get a bank to take less, it usually has to be proven that the property’s overall value is verified through the appraisal process. If the value is greater than the amount being negotiated between the owner, the bank and the buyer, the bank will balk at a sale under these conditions, and want the property sold for more. This happens more or less depending on whether the area is showing a rise or decline in selling prices. Short sales don’t mean a house has to sell for less, it just means the owner will have less to give the bank, becoming a short sale.
Short Sale transactions can be filled with potholes, especially for the buyer. This is due to the fact that a buyer is negotiating not only with the homeowner, but the bank as well. The homeowner may be happy with the sales price, but the bank may not. Thereby, the process begins.
1. It can take a long time finalize a short sale.
Normally, when you make an offer on a typical house, you'll hear back within days, or even hours. But banks move very slowly these days because they are overloaded with cases. You might wait 30 to 60 days for a response, perhaps longer if there's a second mortgage on the property and therefore a second bank. The total process can easily take as long as six months from start to finish. "For someone moving a family or relocating that kind of timeline is incredibly unrealistic”.
2. Your offer can't be contingent on selling your current home.
Banks generally won't accept offers on short sales if they're contingent on selling your current house to get the funds you need. "Even if the buyer is already under contract, there are just too many things that can go wrong." So unless you're a first-time homebuyer, or you don't need the equity from your current home, or you're a real estate investor, it's unlikely that you can make a short sale work for you.
3. It's an as-is sale, or maybe not.
Banks also typically won't consider short-sale offers that have inspection contingencies in them. Repairs usually have to be worked out between the buyer and seller beforehand. So a buyer should do a house inspection before paperwork is sent to the bank. A buyer could spend $500 on the chance that a deal acceptable to all can be made. It’s the risk the buyer takes, and you probably wont get the homeowner to reimburse you for your expenses if the bank rejects the deal.
As long as you're prepared for these hurdles, you may just land yourself a bargain, or not. There’s no guarantee that because you bought a short sale, that you saved a lot of money. But make sure to work with a Realtor who knows the ins and outs of the process and can protect your interests throughout the negotiations.
Short sales aren't necessarily identified on the Internet, but local MLS data usually indicates that the property is a short sale. You need to ask your agent whether a house is a short sale before looking at it.
If you find a house that's a short sale, and you just have to have it, make sure to get yourself a mortgage pre-approval -- another short-sale requirement. Work out your offer with your real estate agent, allowing for give-and-take negotiations. Don’t low-ball too far below the asking price, because your probably going nowhere with that.
When the bank finally replies, it will more than likely counter with a value they or their appraiser puts on the property. Offer them somewhat less than that, and work from there. You’ll know what you feel the house is worth to you, and that’s your purchase price.
Sometimes you will hear that it is a “pre-approved short sale”. This means that somewhere during the listing history, there might have been negotiations that arrived at an agreement price, but didn't come to closing. That number might remain the same, but you cannot always depend on it. Banks periodically update their value conclusions without anyone knowing, and raise the bar on the property.
Your agent can put language in the offer letter stating that if you don't have a response by a certain date (perhaps 60 or 90 days out -- however long you feel like you can wait), you have the option of retracting the offer. That gives you an out, just in case. However, because many short sales fall by the wayside, lawyers have been known to charge an up front non-refundable deposit to represent you in a short sale contract, just in case they have nothing to show for their efforts.
Short Sales are a way of life in these economic times. They can be good, or bad. Because each short sale property has it's particular issues, there is really no way to determine the outcome. But what can be of great use to a buyer, is they the work with an agent with short sale experience. This type of agent can help cut through some of the obstacles and make the process easier.
Need an experienced short sale agent? Let us help. (link here)
Saturday, July 23, 2011
Flood Insurance Bill in Congress. AGAIN | You may loose it!
Right now, Congress is again debating whether to re-authorize the National Flood Insurance Program (NFIP), that expires on September 30th, 2011.
If it is not renewed, the real estate markets in many some areas could to a complete halt, unless this program gets re-authorized.
In a three year period, the NFIP has been set to expire time and time again. It’s time we stop the temporary fixes and give it a long-term extension, and I say for no less than 10 years.
We have all watched the photos of flood victims on television and real about it in the newspapers. American homeowners need the fallback Government Flood programs to obtain flood insurance when it is not available from the private insurance sector.
Do you know what happens every time the NFIP deadline draws near? Mortgage lenders stall closings to see what happens. Buyers run around begging insurance companies to write them a flood policy, and usually it's very expensive. Could you imagine how expensive it could get, if insurance companies knew the buyer had nowhere to go. Not having the government flood program will add even more uncertainty to our already lack luster real estate marketplace.
Maintaining available and affordable flood insurance for all Americans is vital to keeping the real estate market running smoothly in these circumstances.
Think flood insurance is just for homes located at waters edge? The truth is, that many of flood damaged homes that are covered by the by the NFIP program are not near the seashore at all, but located all around the country.
The NFIP programspends no taxpayer dollars, and recieves money from the payments it charges. It's not a freebee! No it's a safeguard.
Congress needs to set in place a long term program, and not keep playing with it on the short term. It's not like the weather is going to wait!
If it is not renewed, the real estate markets in many some areas could to a complete halt, unless this program gets re-authorized.
In a three year period, the NFIP has been set to expire time and time again. It’s time we stop the temporary fixes and give it a long-term extension, and I say for no less than 10 years.
We have all watched the photos of flood victims on television and real about it in the newspapers. American homeowners need the fallback Government Flood programs to obtain flood insurance when it is not available from the private insurance sector.
Do you know what happens every time the NFIP deadline draws near? Mortgage lenders stall closings to see what happens. Buyers run around begging insurance companies to write them a flood policy, and usually it's very expensive. Could you imagine how expensive it could get, if insurance companies knew the buyer had nowhere to go. Not having the government flood program will add even more uncertainty to our already lack luster real estate marketplace.
Maintaining available and affordable flood insurance for all Americans is vital to keeping the real estate market running smoothly in these circumstances.
Think flood insurance is just for homes located at waters edge? The truth is, that many of flood damaged homes that are covered by the by the NFIP program are not near the seashore at all, but located all around the country.
The NFIP programspends no taxpayer dollars, and recieves money from the payments it charges. It's not a freebee! No it's a safeguard.
Congress needs to set in place a long term program, and not keep playing with it on the short term. It's not like the weather is going to wait!
Friday, July 15, 2011
Halfway into 2011, and are Homes Selling any better, or is it worse? By: John J. Picciurro, Staten Island, NY Residential Sales Manager
2011… Halfway through the year, and what progress has the residential real estate industry made?
Well, now that we are into the Summer of 2011, buyers and sellers are still wondering what’s up with obtaining the American Dream of home-ownership, or should I say the lack of it.
My original Blog on this matter asked “Will 2011 be a better year in real estate home-ownership?” Foreclosures, loss of home equity, loss of jobs, these all have a negative impact on purchasing a house. AND THEY ARE STILL AROUND!
The complex issues that caused the real estate crisis in the beginning, are NOT being addressed adequately in my opinion. Even though Government regulations related to home buying have been relaxed some, the number of SOLD homes around the country, has not been rising enough to make much of a difference. And, in many sections of the country, they are stuck in hold.
Buyers with a fairly good down payment and reasonably good credit, have been successful in finding their next home, and negotiated a good deal with the seller. With mortgage rates again dropping slightly, they remain at nearly the lowest they have ever been in the past.
The FHA, with their 3 1/2% down payment loan has provided some excellent financing to home buyers too, especially first time buyers. However, appraisers are still struggling with placing values at the sale price of the home, because comparable sales can be hard to find.
Empty home foreclosures are sitting around for more than a year in many cases, with no one living inside them, or taking care of the grounds and dwelling, they are blighting the neighborhood, and contributing to lower property values around them.
Adding to the situation, the ongoing national debt ceiling crisis in Washington is still being debated, and until a budget is set, money movers will wait it out a little longer, before jumping in with their billions of dollars by pumping it back into the economy.
However, the real estate market is overly saturated with short sales and foreclosures. This is due to the fact that the underwater homes, and the bank foreclosure process is filled with detours and potholes. Foreclosures should be sold to new homeowners as quickly as possible, and become part of the viable community again. They should not become abandoned properties.
But, if a family is still in their home, and are trying to avoid a foreclosure, they should stay in their homes, and try to get the best possible outcome they can. Rushing out of a home, in my opinion is the worst thing you can do, given the fact that the bank moves so slowly, and charges continue to accumalate.
SO IS A BETTER MARKET ON THE HORIZON? Roll the dice, it's a 50/50 bet until Washington does something dramitic to make it happen. If anyone says that they can see into the future, and can predict where the real estate market is going, they they have the best crystal ball there is.
WHAT ELSE IS STALLING THE HOME BUYING PUBLIC FROM MAKING A DECISION TO BUY?
First, lets talk gas. We need to deal with the energy costs for gasoline for your car, to heating oil and gas for your home. They have been rising without no end in sight. With the media again turning it’s attention to future elections, and unrest around the world, our energy worries here at home are not being addressed properly. Whats more, any changes in our energy policy are so far down the road, it will not help the residental real estate market now, or in the near future. But don't think energy costs are not on the minds of potential home buyers. These costs are factored in, just like mortgage payments and real estate taxes.
This all this said, we’re on our own to budget ourselves carefully, so that home ownership can be a reality.
The system still works, and home-ownership is still a good possibility for many. Remember, the lending institutions are doing their part with great interest rates and low down payment loans, and that’s a good thing too!
So, I believe home ownership is still the right thing to seek out, all while taking advantage of the low rates and seller asking prices.
We here at V.I.P. Real Estate are optimistic about the rest of 2011, and look forward to a steady rise in the real estate market.
V.I.P. Real Estate, Inc.
John J. Picciurro
Sales Manager
Direct: 347 712-2190
4106 Hylan Boulevard, Staten Island, NY 10306 | 718 967-2600 Ext. 304
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