Localism: Indiana

34 days left....

Thu, 28 Aug 2008 20:11:39 -0500

The Nehemiah Down Payment Assistance program is going away in less than two months. This program provides an avenue for buyers to obtain a 3% down payment grant which allows for 100% financing using federal loans(FHA). FHA loans were created years ago to help Americans ralize the dream of home ownership and have once again become critical as this is where the loans will come from that take advantage of Government assistance recently passed by congress. FHA loans will allow buyers to finance 97% of the purchase of their home and then the nehemiah grant of 3% takes it to a total of 100%. Often the seller will contribute the closing costs so we are literally seeing buyers get into homes without a penny out of pocket.

FHA, the government agency that backs these loans is not in favor of these. In fact, they have tried in the past to shut down these programs. What this means to us a Real Estate professionals is that our already small pool of buyers will become smaller.

Better hurry!

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Thu, 28 Aug 2008 20:01:46 -0500

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Back-Up Offers in REAL ESTATE - We Encourage Them, SALE PENDING DOES NOT MEAN SOLD.

Thu, 28 Aug 2008 19:22:41 -0500

We closed today on a Fixer Upper Home in Northwest Indiana.

It was not the first offer written on the property, that offer expired and our seller did not want to grant any further extension of time since showings were plentiful.

It was not even the second offer on this property, that was supposed to be "a sure thing" to close, but it wasn't :(

It was the Back - Up Offer to the second offer that Closed within a few days of a mutual release being executed by all parties!

We have always encouraged our clients to continue showings on their property that is listed with us, even after an accepted offer to purchase has been agreed upon by all parties!

We also encourage other co-operating REALTORS who show our properties, that BACK UP OFFERS are welcome!

Sale Pending Does Not Mean SOLD !

At the beginning of each Listing, we relay to our Sellers, that the REAL WORK in REAL ESTATE TRANSACTIONS begins after the negotiated contract has been signed by all.

Getting the deal to Close nowadays is where professional expertise is vital.

Having a Back Up Offer in Place is good, just in case circumstances come up....things that are not re-negotiable or unforseen, that may cause the First Deal to Die.

A Backup offer is the best shot of Adrenalin to restart Seller Confidence that the Home will Sell and CLOSE.

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This is just one in a series of Posts For Localism By Jeff & Grace Safrin, F.C. Tucker Advantage Realty, Serving Northwest Indiana...on HOMES SOLD IN A MARKET THAT's NOT SUPPOSED TO BE GOOD....

The Journey To CLOSING a Home Sale Can be Difficult, Success is Collaborative WORK - Another NW Indiana Home Sold By The Safrin's

DeMotte, Indiana Home - Jeff & Grace Safrin of F.C.Tucker Advantage Realty Found the Buyers!

You Can ...Put it on The Board - Another NorthWest Indiana HOME SOLD By The Safrin's

13 weeks to Complete a SHORT SALE that almost didn't Close - Lessons Learned

Our Sellers Become Our Buyers!

Safrin's Found The Buyers For This La Porte Indiana Home

Listed AND Sold By The Safrin's - Home and Farm LAND in Northwest Indiana.

Cash Buyers Are Coming Out to BUY REAL ESTATE !

Valparaiso, IN - First Time Homebuyers are out in a Market that's not supposed to be good :)

Reverse Offers in Real Estate - A Paradigm Shift for the Northwest Indiana Market !

Who is NEXT ? Referrals come from asking !

1st BORN, 2nd Wife, 3rd REALTOR...

Tri-Omino Effect on Closing with 3 peat Clients! Another VALPARAISO HOME SOLD by The Safrin's in a Market That's Not Supposed To Be Good !

IN A MARKET THAT'S NOT SUPPOSED TO BE GOOD, Jeff & Grace Safrin Found the Buyer For This Valparaiso, IN Greenfield Creek Home - Why Did it Sell ?

A Step on the Path To Successful Real Estate Transactions...

Jeff & Grace Safrin REALTORS - "Spouses Selling Houses' TM

Please feel free to Contact us @ 219-405-1232 or, click the below to read / subscribe to our email newsletter with valuable Relocation Information.

NW INDIANA remains a Great REAL ESTATE MARKET check our past---> SOLD HOMES !

Thanks for Visiting our Blog! To read more about local NW Indiana events, sports, and more, click our blog link below. For more homes for sale view our Other Listings @ www.safrin.net& client testimonials!

We are Your Local Expertsfor NW Indiana Real Estate.

Call or email us for a RELOCATION Package Today

Disclaimer: The opinions expressed by those providing comments are theirs alone, and do not reflect the opinions of Jeff and Grace Safrin of F.C. Tucker Advantage Realty. Jeff and Grace Safrin and F.C. Tucker Advantage Realty are not responsible for the accuracy or content provided.

F.C. Tucker Advantage Realty

Real Estate Bubbles

Wed, 27 Aug 2008 21:42:21 -0500

All of this talk of the real estate bubble has my head spinning.

It is apparent that the term "Market Correction" has lost its luster in the media. How high and far did we all think this market was going to go? I can visualize the ad now.......

Beautiful 850 SF 2 BR / 1 BA bungalow on .09 acre lot only 92 miles from city center offered for just under: (Drum roll please) $40 Million Dollars!

Hurry because this deal will not last long! You will be asked to participate in a lottery format, give a blood sample, and make a deposit of your first born child!

I have seen people who have gained over 200% in appreciation in a full panic because their home value fell 18%????

Who were the investors that were hurt? The investors who watched the media hype, that's who. They jumped into the market too late, made very foolish decisions, and hired order taker Agents who were just out to make a buck and pay for their new Mercedes.

Then the investors made a few bucks and felt like "The Donald". They began to refinance these homes and started buying more properties without even considering the negative cash flow positions they were putting themselves in. They did not have a business plan and were relying on plain luck.....

This is why we should not buy into the media hype as an investor in today's market.

Or maybe we should......It is just a matter of rewiring our brains on how we process this information. Another way to define a Buyers Market is that = Inventory is ON SALE!!!!!

If you are a real investor and want to make money, you are licking your chops right now. You need to find an Agent who is looking out for you and not just trying to make THEIR mortgage payments.

WHAT IS THE DEAL WITH SUB PRIME LENDERS ANYWAY?

What were they thinking?

Was this another future ad?

Do you have a 350 credit score and make at least $15K a year...NO PROBLEM!!! We have a program for you.......**Borrow up to $500,000 at a first year payment of $199 per month! We care about you and your family and want to give you the American Dream of Home Ownership.

** Second year payments increase to $5,000 with a $550,000 balloon payment due in year 3, but don't worry; you will be well on your way to foreclosure by then and it will not matter. We do not really care because we have leveraged our bets in the Asian markets, believe your home will be worth triple, and you will be too stupid to sell it out of pride! We will make a profit regardless of whether you make your payments or not.

Agents/Brokers I would suggest that we all learn more about the Mortgage industry and work hard to consult with our clients on the best loan programs for their investment strategy. We need to stop looking at ourselves as selling properties, and more as a concierge service for Clients.

As Bob Dylan once said, "The Times They are a Changing"...then he did a Victoria Secrets commercial......interesting....... I think he gets it....

Why Does The Mainstream Media Want To Scare Us So?

Wed, 27 Aug 2008 21:38:20 -0500

Listen to the evening news and you feel like going into the street and throwing a going away party for most of your neighbors. The impression is that most of us will be homeless in the next few months because the banks will be foreclosing on our mortgages. The economy will be grinding to a halt because so many of us are not capable of managing our money, or we were tricked into bad loans that are about to re-price at higher interest rates.

Upon hearing of the 1919 Chicago Withe Sox "Black Sox" baseball scandal, a young baseball fan was quoted as saying "Say it ain't so." Well, it ain't so!

More than mortgage trickery and poor personal management are to blame for the rising foreclosure rates, but fortunately here in the Midwest, we haven't been subjected to the additional circumstances. Combined with some questionable loan practices, and some individuals who can't manage their finances, two other factors are involved.

First, particularly on the coast, we have seen double digit increases in home values over the past five years. This rate of increase was not sustainable. Prices finally bubbled, and the price bubble burst leaving those who bought in "the last days" with properties that were devalued over night. In some instances, properties lost 25% of their value.

Second, because of the rapid value increases, many investors bought with the intent of selling at a profit over a very short timeframe. Since the property had no shelter value (it wasn't going to be used as a primary residence), and since these investors were involved in many transactions, their losses are multiplied. Indeed, there is a problem that will be shaken out of the economy and the market over the next two years, but not so much here in Southern Indiana, and probably not as severe a problem as you are being led to believe.

Consider current and historic foreclosures. In the Midwest, historically, the foreclosure rate is about 7/10 of 1 percent, that's .7%; less than 1 in 100. The media tells us "The Foreclosure Rate has Risen To 176% of Normal," GASP!!! Actually, with a rise of 176% we see that mathematically (.7 x 176% = 1.23%), the number of foreclosures has risen to 1.23 in 100. Doesn't seem so bad now, does it?

The media also blows another statistic out of proportion in the hope to scare you into watching tomorrow. They might give an example of a financial institution foreclosing on a $1 million dollar property. Sounds like a huge loss, right? They make it sound like the bank just lost $1 million. But wait! The bank may have loaned $1 million (so they may have a risk of 1 million), but they get the house, right? At some point they are going to sell the house, let's say for 80% of its value or $800,000. So really, the bank only lost $200,000. A lot of money, but not nearly what the media leads us to believe. And actually, the bank had been putting back a few dollars every month in case one of its mortgages went bad, so they have $75,000 held in reserve to cover any loss they have. They apply the $75,000 toward the $200,000 loss, and their actual loss is $125,000. Still a big number, but not nearly as bad as the $1 million you were led to believe. It takes a lot more losses of $125,000 to ruin the bank.

Things aren't as bad as they seem. We are being misled, in hopes that fear will encourage you to tune in tomorrow for "Scared Stiff: How to Change Your Life for the Worse Through Exaggeration".