Alison Moss - Cincinnati Real Estate

Cincinnati Metro launched six hybrid mass transit buses today on Earth Day. To celebrate the occasion there was a parade of the new buses from Eden Park to Downtown. This story was featured on CNN. It is great to see national news covering positive stories about Cincinnati.

Cincinnati Real Estate: Options for Delinquent Homeowners

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Cincinnati Real Estate: Short Sales

The Cincinnati Enquirer ran an article today on the rising number of short sales occurring in the current real estate market. Short sales are transactions that occur when a bank or lender agrees to accept less than what's owed on a home loan to avoid foreclosure.

Why would a seller consider a short sale in lieu of a foreclosure? Although it is still damaging to a seller's credit and can drop their credit score by as much as 300 points, it can be preferable to try to settle with the lender without incurring the substantial carrying costs and legal fees for the lien holders and property owner while properties move through the foreclosure process which can take multiple months. Fannie Mae recently adjusted their guidelines to dictate only a two year waiting period for a short sale seller to buy another primary residence, while they extended the waiting period for foreclosures to five years.

For buyers short sales can be a good opportunity to purchase a home for below market prices. These homes are less likely than foreclosures to be distressed because the homeowners is still occupying the property. Buyers beware that while there are great deals to be had, the short sale process can be long and frustrating. Some properties can take several months to close due to the number of parties involved.

If you are experiencing financial hardship, live in the Cincinnati area, and are considering a short sale or foreclosure of your home, please discuss your options with your accountant or attorney prior to making the decision to short sell or foreclose. If you need recommendations of professionals in the Cincinnati area, please contact me.

Cincinnati Real Estate: Banks Blacklist Condos

A number of lending institutions and banks are blacklisting condo developments, refusing to write loans to prospective buyers, according to Marketplace. South Florida has been particularly hard hit by this, adding additional strain to the overbuilt condo market. However analysts say other banks are drawing up similar blacklists on projects in Nevada, Michigan and California as well.

Making matters worse is that Fannie Mae has made getting a condo loan even tougher, requiring a higher percentage down payment than in years past. Before Fannie will write a mortgage in any new condo building anywhere in the U.S., 70 percent of units should be sold. It used to be just 51 percent.

This lending practice is discouraging development, and if banks follow suit it could put a halt to all condo development, because in this economy the likelyhood that the first 70% of buyers will not need financing is exceptionally rare.

In Cincinnati this could have a serrious impact on the new developments taking place in areas such as the gateway Quarter, and Downtown. As condo buildings come open for purchase it is my hope that the institutional lenders will recognize the strength and stability of the Cincinnati real estate market when they are reviewing loans applications.

Additionally condos have been a typical first purchase for first time home buyers, and those looking to downsize. Both of groups are looking for efficient and economical housing and if mortgages are not available to buyers looking at specific buildings it will distort the housing market artificially.

Homeowners Insurance: Is your coverage sufficient?

Do you have adequate insurance coverage for your home? What you paid for your home a few years ago is less than what you would have to pay now to rebuild the same home. Keeping your homeowners insurance coverage updated is extremely important especially in the case of a total loss where reconstruction would be necessary. You should reevaluate your coverage every year or immediately following any home improvements or remodeling. Be sure to have full replacement cost if possible as well insurance on the contents of your home and valuables (itemized if necessary). My insurance company USAA recommends insuring your home up to 125% of its current value in the event that the rebuild cost is greater than the policy limit.

Good coverage for Cincinnati Real Estate is especially important due to all of the elements that your homes encounter through the snowstorms and extreme cold in the winter to the high humidity and strong spring and summer that we will soon be facing.

Here are the construction costs per USAA Magazine Spring 2009 comparing construction costs from 2002 versus 2007