The market has changed in most areas. It is in the process of “correcting itself”, people say. Buyers currently have a great deal of choices available to them. There has been widespread discussion of the current market conditions in the local and national news. I would venture to guess that everyone knows what’s going on. However, some people are in denial about some of the absolute facts.

     So, I thought I would put together a list of things that will NOT help you sell your home.

 1.) Being oblivious to your local market conditions

 2.) Pricing your home based on what you want to pocket

 3.) Making your home unavailable to show

 4.) Leaving your home cluttered or disorganized

 5.) Not be negotiatable on anything

 6.) Neglecting the yardwork

 7.) Forgetting about the curb appeal

 8.) Hiring a real estate agent based on fee alone

 9.) Neglecting basic home maintenance

10.) Waiting for that “special” buyer

Technorati Tags: buyer, cluttered, curb appeal, fee, How not to sell your house, maintenance, negotiatable, unavailable

For information on “soft market” policies, please read It’s here…now…what does it mean?

Tybee Island is now under the “soft market” policy. This means that the maximum loan to value will be decreased by 5% in this area. If you were looking to buy in the Tybee Island area and were pre approved for a 95% loan to value mortgage, you will now be required to put down an extra 5%. So your 95% mortgage loan to value is now 90%.

The term “soft market” applies to a declining market area. Usually, there are many homes for sale in the area and the homes have a longer stay on the market. Basically, you lose buying power and your down payment goes up.

Also, the downtown area is beginning to be considered a “soft market”. Homes that have been on the market for over 6 months are being seen as such.

Of course, this isn’t good news for home buyers or sellers. Sellers will now have to make sure their home is priced accordingly. No one wants to put an offer in, start the due diligence period, and then find out it didn’t appraise. Buyers now have to have more money down and can borrow less. But the positive side is that homes will be affordable and only truly qualified buyers will be looking!

Technorati Tags: downtown, Savannah, soft market policy, Tybee Island

If you are interested in new homes, then the Parade of Homes is for you. Over 80 homes in 54 communites are scheduled for this event. It will be held today and tomorrow. If you miss it this weekend, don’t fear. They are holding it new weekend as well. The tour will encompass the Bryan, Chatham, Effingham, and Liberty counties.

Many people have decided to put off buying a home until the market either hits bottom or stabilizes. Instead, they have opted to rent. While this is a great option, they need to be aware they are not immune to the housing crisis going on. Specifically, they can and may be affected by the rise in foreclosures. Even renters aren’t safe from the sub prime fall out.

A woman in New York got a knock at the door of the home she was renting. It was a man from the bank. He told her that the landlord had lost the home and she needed to be out. She now has to find a place for her and her two children to live. Eviction isn’t the only issue a renter may have to deal with.

With foreclosures on the rise, many people simply just walk away. If your landlord walks away, you may be left with maintaining your own place. And if the landlord stops collecting rent, you may think that will cover repairs and will be extra money for you. However, the banks may sue the renter to collect back rent. So be careful!

Technorati Tags: foreclosure, renters, safe, Sub Prime

According to an article on CNN Money, there are 6 cities that home prices will drop the least or possibly even begin to rise. So, where are the best places to buy a home these days?

The number one place on the list is here in Georgia. The top place to buy is in Atlanta, Georgia. Ironically, Georgia is also one of the places facing the biggest foreclosure crisis. With so many homes in or close to foreclosure and home builders slowing, the number of vacant homes should decrease. Once this happens, the demand for homes will increase. Thus, home prices may start to rise.

The rest of the list is:

2. Boston, Massachusettes

3. Cincinnati, Ohio

4. Cleveland, Ohio

5. Detroit, Michigan

6. Houston, Texas

Technorati Tags: Atlanta, Best Places to buy, foreclosure, Georgia

Have you been thinking about buying a home in Pooler or Bloomingdale? The United States Department of Agriculture through the USDA Rural Development Agency is making low-interest loan funds available for eligible applicants to buy a home in the in rural areas such as Pooler and Bloomingdale. For more information, call the Rural Development Office of the USDA in Statesboro at (912) 871-2620 then use option 4. 

Unfortunately, this program does not include homes in Savannah.

Technorati Tags: Bloomingdale, Chatham County, low-interest, Pooler, Rural Development Agency, USDA

With the increase in foreclosures, banks have their hands full. Once the foreclosure process has begun, the bank starts to lose even more money. Then the bank acquires an empty and sometimes vanadalized house. A vacant house can sit for months while the bank gets everything together to begin the selling process. While the home sit vacant, it can be vandalized further. The plumbing, fixtures, wire, toilets, etc. can all be removed from the home. This leaves the bank with an even bigger burden.

So, some banks have not forced people from their homes even after they’ve gone deliquent. According to “Lenders Swamped by Foreclosures Let Homeowners Stay” on Bloomberg.com, banks are allowing the homeowners to stay in the home typically if they are in hard hit areas or areas known for vandalizing.  However, the down side is it’s not giving a clear picture of how bad the foreclosure crisis may be.

Technorati Tags: Banks, crisis, foreclosure, Homeowners, Vandalized

I just listened to an interesting article about the Bogeyman Index has Motive for Scaring Homebuyers. It has some interesting takes on the current situation. She is right though. No matter if prices go up or down, we are need housing. I just don’t see people pitching tents.

Technorati Tags: Homebuyers, Index, Scaring

Selling your home in this market can be a difficult feat. It’s even more difficult when you are competing against new homes, short sales, and foreclosures. Take a look at Foreclosures: 100 Worst Hit Zip Codes to see if your area is suffering from high numbers of foreclosures. The worst cities hit were Las Vegas and Detroit. The state most affected by foreclosures is California.

Technorati Tags: Foreclosures, new homes, Short Sales, Zip Codes

In mid- December, George Bush announced Hope Now, a program to help decrease the number of subprime defaults. It is a voluntary accord that lenders, mortgage investors, and servicers entered into to aid borrowers facing default after their subprime adjustable rate loan jumps to that higher rate. This program basically freezes the interest rate so that borrowers have more time to find a solution.

There are several steps involved in the process. The most important one is placing the call. Call 1-888-995-4673, the line is open 24 hours a day, 7 days a week. When you call, you will be connected with a HUD-approved counselor. Make sure you have plenty of time when you make this call. You should expect the call to last 45 minutes. To make things go smoothly, be prepared. Gather all documents you have regarding your financing, your income, and your monthly expenses. After the counselor gets all the information necessary, they will give you all the available options for your current situation.

Quick Guide to Eligibility:

1.) Only Home Loans are applicable (no Home Equity)

2.) You obtained financing between January 1, 2005 through July 31, 2007

3.) Those whose rates will reset between January 1, 2008 through July 31, 2010

4.) Those who are current on their mortgage before rate the jumps, don’t qualify for a refinance, and will not be able to maintain the mortgage when the rate hikes

The counselors will still help borrowers that do not meet those requirements. Remember with increasing numbers of foreclosures, the mortgage servicers are dealing with large numbers of REO properties. So they are more willing to try to help you NOT default. The most typical solution is refinancing. The mortgage servicers are more than willing to find a loan to help you, even if they don’t offer it.

For those of you that are unable to make your payments on a traditional loan or due to a life change, there is always what is termed a short sale.  Even if this is your situation, you should call the Hope Now number. They will make sure that there isn’t any other recourse for you.

Technorati Tags: foreclosure, Hope Now, Refinance, Short Sale, Sub Prime