Bothell, WA

FORECLOSURES AND FALLING HOUSE PRICES, WASHINGTON

Foreclosures are continuing to rise with no end in sight, and according to Barclays Capital, U.S. foreclosures will peak in the second half of 2010 with home prices continuing to decline through the end of that year. According to S&P/Case-Shiller, U.S. home prices have dropped 33 percent since July 2006. Amidst a growing number of discounted foreclosures, homeowners attempting to sell their homes are finding themselves trapped in a losing situation. If the current trend continues, 2009 will become the lowest year for new-home sales since the Census Bureau began taking records in 1963.

According to Michelle Meyer, an economist at Barclays Capital in New York, "Home prices are likely to continue to fall, albeit at a slowing pace, even after the economy technically emerges from the recession." Based on the S&P/Case-Shiller home price index of 20 U.S. cities, the prices of homes may drop another 7 percent, leaving thousands of Americans "underwater," owing more than their homes are worth on the market. Nearly 22 percent of all mortgage holders in America were underwater in March 2009, while around 15 million homeowners currently owe more than the value of their homes. [Bloomberg, 7/02/2009]

As a result of the mounting threat of foreclosure faced by homeowners, the government has announced an adjustment to the Making Home Affordable program. Unfortunately for the majority of homeowners looking to refinance their mortgages, the plummeting value of homes has made new government programs unavailable to them. Refinancing activity is already in decline due to the rising interest rates. At the current moment, homeowners owing 5% more than the value of their homes can refinance mortgages through Fannie Mae and Freddie Mac. According to USA Today, Housing Secretary Shaun Donovan said on July 1 that the program is being expanded to allow homeowners who owe 25% more than their homes are worth on the market get refinancing help through the federal agencies. [USA Today, 7/02/2009]

As interest rates are presumed to skyrocket, refinancing no longer makes financial sense for a growing number of homeowners looking to find a lower fixed-rate mortgage. According to Freddie Mac, the average rate on a 30-year fixed loan has increased from 4.82% on May 21 to 5.42% as of June 25. Unable to secure a lower interest rate, and while their home value falls, homeowners are left with only one option: loan modification. Without new fixed rates lower than 5%, at the current rate refinancing does not make sense without modifying the loan itself. As the interest rates continue to rise, refinancing activity is quickly diminishing with the realization that loan modification is the only cure. [USA Today, 7/02/2009]

Mortgage Loan Center, LLC in Edmonds, WA, is now offering free loan modification classes to Washington homeowners in order to provide them with the most current information on all options now available. Randy Lowell of Mortgage Loan Center is currently the only instructor certified by the Department of Financial Institution to teach continued education classes on loan modification, and provides classes Tuesdays, Thursdays and Saturdays to Washington homeowners. In addition, a free online loan modification evaluation is available so Mortgage Loan Center can immediately begin the process of determining the savings you qualify for.

Mortgage Loan Center, LLC
License # 510-MB-20022
http://mlcloans.com

OBAMA PLAN AVOIDS FORECLOSURES IN WASHINGTON

As most have seen in the news, a great number of changes have occurred in recent months which have impacted American homeowners.  The "Homeowner Affordability and Stability Plan" is part of President Obama's strategy to help the American economy and housing markets get back on track.  Obama's plan will save up to 9 million families from foreclosure by restructuring or refinancing their mortgages in order to avoid foreclosure, indirectly helping all Washington homeowners.  Responsible homeowners on the verge of defaulting are now able to find help in the escalating housing crisis.  As defaults and foreclosures contribute to falling home values, falling local businesses, and lost jobs, this plan may help prevent neighborhoods and communities from falling over the edge.  [White House, 2/18/2009; U.S. Treasury, 2/18/2009]

Obama stated back in January, 2009:

"My commitment is that we are going to fundamentally change some of the practices in using this next phase of the program. We're going to focus on housing foreclosures, we're going to focus on small businesses, we're going to focus on what's required to make sure that credit is flowing to consumers and businesses."  [Reuters, 1/12/09]

In March President Barack Obama passed new legislation to help American homeowners, including a now-expanded $75 Billion program to help borrowers avoid foreclosure, preventing up to 9 million U.S. homeowners from losing their homes, as well as stabilize the beleaguered housing market at the root of the current widening recession.  Several large lenders, including Bank of America and Wells Fargo, praised the program which may provide homeowners with interest rates temporarily cut to as low as 2 percent.  Initially, the Obama administration focused upon owner-occupied properties like Fannie Mae and Freddie Mac, however, loans for second homes and investment properties may also be refinanced.  [WA Post, 5/5/2009]

Randy Lowell, owner of Mortgage Loan Center, LLC in Edmonds, WA, is currently the only instructor of loan modification certified by the state of Washington.  Mr. Lowell is now offering a free loan modification classes to the public in order to provide them with the information needed to acquire an affordable loan.  This long-standing company has helped countless WA homeowners modify their loans in order to save their homes. 

Some of this Federal government bail out money is for you!!

Obama's housing plan helping to avoid foreclosure was aimed to help struggling homeowners like you.  Please fill out this free online evaluation form so we can immediately begin to calculate the most affordable plan for your situation.

Mortgage Loan Center, LLC
License # 510-MB-20022
http://mlcloans.com/

RELATED BLOGS:
Free Washington Loan Modification Evaluation
Loan Modification Scams in Washington

http://www.youtube.com/watch?v=jbSKVJly9vE

I just created a YouTube video of my Hyde Park listing. Please take the time to check it out. It takes only a little over a minute!

If you would like to have a private viewing, please contact me @ 206-799-1576 or Jim @ 425-445-6273 (if you are calling in between 6/23 and 7/7).

Currently we have 4 listings at Hyde Park. All are beautiful homes! Our listing is the lowest of all and it is $799,950. Other three are between $879K and $989K. Ours is the best deal there! If you have been dreaming of living at this prestigious gated community of Hyde Park, don't miss this great opportunity!

Thank you!

I am holding Open House on this Thursday, 6/11 from 11:00am to 1:00pm. Come to see it (and see me!)! And write up an offer!

Shopping and restaurant at your door, Meydenbauer next door. Very central and very private. Enter through your own private oasis, the 2 story living welcomes you in. Hop on the overlooking dining area and kitchen.

• Rowhouse Townhome @ the heart of Bellevue
• built 1975
• 1720 sqft
• HOD: $350/mo -outside landscape included in HOD
• Central Vacuum
• 2 car garage
• 3 bedroom, 2.5 bath & den/office
• $649,800

MLS: 29078183

Address: 9827 NE 5th St. Bellevue

I encourage my sellers to stage their home before listing. I don't mean to say the kind of staging you see on HGTV shows. It is very important to make your home as 'sellable' as possible to potential buyers. A well staged house can sell quicker and tends to sell at a higher price.

I personally like to hire a professional stager when I list a property. I have a BA in Interior Design, so I can do it for the sellers, but I've found it is easier if a professional stager steps in and suggests to the sellers what needs to be done before listing. Sometimes the sellers may take our advice personally and it could effect our relationship. I think in many cases the sellers are more willing to change things when a stager suggests some changes because the sellers know that those stagers are 'experts'.

All of the stagers I've known are very professional, respectful, personable and sensitive. They all know that the sellers have arranged their rooms in a certain way because it works and they like it. So they are not going to walk in and start changing everything. Everybody has different taste and it is not about right or wrong. But when we sell a property, we want to avoid distractions like too many family pictures, or oversized furniture, or too strong wall color, etc. as much as possible. And they know how to do it and what to do it.

If you are in need of stagers or interior designers in the Seattle and Eastside area in WA, here are a couple of them that I can refer.

Marlene Rockey http://www.facebook.com/ext/share.php?sid=108728947344&h=pq9Ed&u=O9-YG&ref=mf
Yumi Kagamihara http://www.facebook.com/ext/share.php?sid=219504095416&h=-BxA5&u=cU8rB&ref=mf
Dawn Wilkinson http://www.six-walls.com/about.htm

They are not only great stagers/interior desingers but also very nice persons!