Andy Hodes

By Angel Sherlin of Greater Chattanooga Lending, Guest Mortgage Author

While there were no quiet days in the mortgage market during the week, the enormous swings in rates seen recently were absent. The sparse economic news did little to change the outlook for future economic growth and inflation, and the net result of a series of medium sized daily rate movements was a slight drop in mortgage rates for the week.

The most notable economic news during the week was the release of the minutes from the March 18 Fed meeting. According to the minutes, the three quarters point rate cut was made to help avoid a worse than expected downturn in economic growth. The Fed forecasted that rate cuts and government stimulus packages will lead to faster economic growth during the second half of the year. Falling home prices and turmoil in financial markets were cited as the two most significant reasons for the slowdown. Two of the ten voting Fed officials wanted a smaller rate cut due to inflation concerns. Investors are now evenly split between an additional quarter point or half point rate cut at the next meeting on April 30.

In the housing sector, the February Pending Home Sales index fell a little more than the expected from January, and the index was down -21% from one year ago. Pending Home Sales are a leading indicator of future housing market activity, so the next Existing and New Home Sales reports may show small declines. The National Association of Realtors (NAR) latest forecast predicted that conditions will remain flat for the next few months, but that activity will pick up during the second half of the year. The Chief Economist of the NAR expects that higher mortgage loan limits will lead to increased sales later in the year.

By David Israel, Business Manager - Andy Hodes & The Scenic City Team

As we move away from the winter weather in Chattanooga, even though we still have the possibility of another frost, the days are getting longer and the sun is shinning brighter. This is the time to start a spring cleaning of your home. No, I am not talking about your normal spring cleaning, I am talking about -

"5 Great Tips for Seller's - Let The Sunshine In".

1. Clean the Windows- It is bright and sunny outside, bring some of that natural light into your home. If you notice that the windows are a little dirty, there is an easy way to clean those windows. Mix a solution of of one part vinegar to nine parts water, plus a drop of dishwashing liquid. Spray on and wipe with newspaper to avoid streaks, yes, start saving those newspapers; re-use them to clean your windows. Having your windows professionally cleaned is less expensive than you think.

2. Bring out the Color - Start getting ready to put out flowers, if you haven't already. This is a good time of year to start thinking about putting in some colorful flowers. Remember, your buyers will one get a first impression of your home once. Make sure you don't skimp or over plant.

3. Cut the Grass - After several months of not having to cut grass in the Greater Chattanooga area, the time has come to get back out into the yard. You need to step up your schedule of cutting the grass while your home is listed. If you normally cut your grass or have a professional do it, add another cut every month into your schedule. The last thing you want is a perspective buyer to come for a showing and see that the grass isn't maintained. Their first thought will be "if the grass isn't maintained, what about the rest of the house".

4. Clean the Outside - It has probably been a while since you polished your door knob or cleaned your railings. These are important items to keep maintained while your home is on the market. I cannot stress enough how important these little items are in the "big picture" of getting your home sold.

5. Place a new WELCOME Mat - Nothing says welcome like a fresh welcome mat. You don't have to spend a lot of money, however, you want your buyers to feel welcomed! You can purchase nice and inexpensive door mat at Lowe's or Home Depot.

With tons of houses for sale on the market, it's always a great investment to keep your home in tip-top shape. Buyers are looking for that "perfect" home and you've got it; just let the sunshine in and get it sold.

By David Israel, Business Manager Andy Hodes & The Scenic City Team

Nestled on Hawk Hill in Downtown Chattanooga is AT&T Field, the home of the Chattanooga Lookouts. The Chattanooga Lookouts are the AA Minor League Baseball Affiliate for the Cincinnati Reds. Starting Thursday, April 3, 2008 the Chattanooga Lookouts start their new season with a new manager.

Individual tickets are $2 to $8, making for a reasonably priced afternoon or evening of family entertainment. The concession stands have typical ballpark fare such as hot dogs, peanuts, and cotton candy. If you prefer a sitdown meal before or after the game, restaurants are plentiful just within one block from the ballpark.

Gameday promotions, weekly postgame fireworks shows, and the annual visit from the Famous Chicken always attract large crowds.

Who knows? You might even get to watch a baseball player before he becomes a star in the Major Leagues. Prince Fielder, Jeff Francoeur, and Miguel Cabrera are three of many current Major League Baseball stars who have played at AT&T Field.

I ran into a friend a few days ago, let's just call her Norma, who lost her great job several months earlier; her new job pays much less. Norma was struggling to barely pay all her bills, including a big mortgage. She asked if I could quickly sell her home so she could look for a place to live that would fit her new budget.

After a few questions I quickly determined that Norma couldn't sell her home for a price high enough to pay off her mortgage. We call this being "upside down"- a bad place to be if you need to sell quickly. Norma said that if she couldn't sell it, that she'd just walk way and let the bank foreclose. I suggested trying a "short sale" of her home instead, which could be a real win-win for her AND her lender. Norma wanted to know more.

In economic times when home prices keep going up, we don't hear too much about short sales, but now that we're in a buyer's market with increasing inventory and declining home values, short sales become more prevalent. More and more people need to sell - and sell now - but they owe the bank more than their home is worth. There's no need to walk away and have a foreclosure ruin your credit for years to come.

Lenders typically place a lien on your home and property that gives them the right to foreclose and take the property back if you don't pay them on time or in full. A short sale (also known as a short payoff) occurs when your lender agrees to accept LESS than the full loan amount owed so you can go ahead and sell your home and get out from underneath your mortgage. Many times the lender will accept the partial payment as payment in full; sometimes the lender will still require that you repay the shortage after the sale - but the bank allows the sale to close without a lien.

The most frequent question I'm asked about short sales is, "Why would my lender agree to a short payoff?" The answer is simple economics; foreclosures are expensive with banks typically netting less than it would through a short sale. A seller also comes out of the process without a damaging foreclosure noted on their credit report and, many times, without having to pay back the short fall. Short payoffs - or charge offs by the bank - are noted on consumer credit reports, but is much less damaging to your credit than a foreclosure or bankruptcy.

In order for you to qualify for a short sale, you'll need to prove a financial hardship to your lender, but first get your house listed with a Realtor who understands the short sale process. The Realtor will list your home and help find a buyer with the best possible offer. The offer, along with proof of your financial hardship, some information on the local real estate market and a broker estimate of your home's value and some pictures are all packaged and sent to the bank for its approval.

I prefer to use an intermediary, like Short Sale Headquarters, that specializes in negotiating short sales with lenders - its fees are actually paid by the lender! A company like Short Sale Headquarters specialize in presenting the case to the lender and getting the deal done. Many times lenders don't respond well to the seller or their Realtor making the services of an intermediary invaluable. Also, in a short sale situation, a seller is usually not allowed to walk away from closing with any money - all proceeds go to the lender.

Norma listened carefully and thanked me for giving her a great alternative. Now we can put her home on the market at a realistic price to get a great offer that her lender is likely to accept. Once this is behind her, she'll truly live happily ever after!

Categories: Chattanooga Real Estate News, Flavors of Chattanooga, Things to Do in Chattanooga

By David Israel, Business Manager - Andy Hodes & The Scenic City Team

As Spring Break comes closer and school is out for the kids, have you planned your time wisely and economically? There are several things to do in the Chattanooga area with your kids, rather than taking a vacation out of town. It is more economical and the whole family might learn something new about your own hometown.

"Below you will find 6 great things to do that can fill an entire weekend on less than 1/3 of a tank of gas."

With gas averaging almost $3.18 per gallon, why drive out-of-town, there are great local places and attractions. These are only suggestions, use your imagination to discover more of Chattanooga.

1. Go to a local restaurant that you have not been to before. There are so many choices here in Chattanooga from your local BBQ joint like Sticky Fingers to 212 Market Street, which by the way I have eaten at 3 times this week during several committee meetings.

2. Go see a local attraction, park your car in St. Elmo and take a ride up Lookout Mountain on the Incline Railway. See the view from the top of the mountain. Walk over to Point Park, one of the great U.S. National Parks. Take a stroll with the family and enjoy the rich history that surrounds the Chattanooga area. Walk back and take the Incline back down. If you have never done it, you will love it. If you have, I am sure it has been a while and you will get a kick out of the experience.

3. Drive up Lookout Mountain and visit Ruby Falls or Rock City. Both of these places are local treasures and you can spend an entire day just visiting these two spots.

4. Take the kids to the Tennessee Aquarium, see both the fresh water and salt water buildings. In between buildings go across the street for lunch at The Mellow Mushroom for some great pizza and to give your feet a rest. Then head back to the aquarium to see the 2nd building. It will be both an educational experience and an enjoyable one for both you and your children. My wife and I are members and we take advantage of visiting on a regular basis. The volunteers in the building are very knowledgeable and helpful so that your experience is an enjoyable one.

5. Check out the Tennessee Valley Railraod Museum and relive the golden age of railroading. Take the classic Missionary Ridge Local or take an all-day excursion to Summerville, Georgia, or see the beautiful Hiwassee River Gorge. The Tennessee Valley Railroad Museum, is the largest operating historic railroad in the Southeast!

6. Visit the historic Chickamauga Battlefield in North Georgia. You can pack a picnic lunch for the entire family and take the seven mile auto tour through the battlefield. There are many places to stop, get out and walk around, it is also a great place to bring your bikes for a short or long bike ride. There are open fields to run around, fly a kite and have a picnic.

These are only a few ideas of the incredible amount of fun you can have in Chattanooga. We also have the arts community, museums, restaurants, attractions and so much more. You can check out our links on our blog for more information and more ideas. With the weather we are having this winter (feels like Spring), there is an abundance of indoor and outdoor activities that can keep you busy for an entire week. Go out and see Chattanooga!