Josh Schlesselman

I'm hoping to get some constructive critisism from some of the most savvy techy agents out there! I have just put the finishing touches on my site JoshSellsVirginia.com. I currently have PR 1 but some of my interior pages have PR 2. Any thoughts or critiques on content, layout, and functionality would be appreciated. Also interested in reciprocal and three way link exchanges. Thanks in advance!

Hampton Roads is comprised of seven different cities. It's one of the largest military areas in the country, which is why the real estate market here is so stable. Buyers and Sellers enjoy the benefits of getting good value for the money on purchase or sale of their home here locally. We are below the national average for foreclosure rates, roughly about 3%, and market home pricing stability, right at about a 5% market correction. For more detailed information about the area or anything concerning real estate, please visit JoshSellsVirginia.

Specializing in Hampton Roads Real Estate

Virginia Realtor® for Virginia Beach Real Estate, Chesapeake Real Estate, Norfolk Real Estate, Portsmouth Real Estate, Hampton Real Estate, Newport News Real Estate.

Early this month, mortgage finance company Fannie Mae, stated that they will loosen guidelines and allow investors to finance a maximum of 10 loans. When the financial crisis in September happened, they went from allowing 10 loans for any individual down to four. Due to increasing demands for policy reviews, Fannie decided to reinstate the original guideline.

Since their September takeovers, Fannie and competitor Freddie Mac have loosened some underwriting rules and set policies for their loan servicers to rework more delinquent debt to aid the slumping housing market and lower their foreclosure costs. The companies, which own or guarantee almost half of the $12 trillion of U.S. residential debt, also have tightened guidelines and boosted fees for some loans to reflect their higher risks.

There are some restrictions with the new policy reinstatement. First, borrowers must have a strong credit history, and up to six months reserves in the bank. Investors with five to 10 properties will need six months of reserves for their other properties, compared with two months for borrowers with fewer homes, according to the notice. Fannie also changed its definition of the payments to include homeowner association dues, cooperative fees and other loans secured by the properties, along with the first mortgages, taxes and insurance. There will also be higher fees with these loans, and rates above normal.

All in all, despite the new changes, it's refreshing to have the ability to have more than four mortgages. The change will definitely help the housing markets all across the country, and allow the investors and homeowners the ability to buy up some of the surplus homes available for sale. For more info on this topic or any other, visit my site at JoshSellsVirginia.

A recent survey was just put out by NAR (National Association of Realtors) that said 20% of the most recent sales were REO (Real Estate Owned) or bank owned property. That's an astounding percentage! Since these types of properties are becoming more and more common, I want to go over the pros and cons for those interested.

REO's essentially are post foreclosed homes, and lenders are not in the market to hold or own these types of properties, so they out source them to a select group of real estat agents or in some cases auctions to get them sold. Some of the drawbacks of purchasing REOs are that they are usually in need of repairs. When owners are faced with losing their homes, they really don't focus on maintaining the property the way they should, and in some cases, take out their frustrations of losing their home on the house itself. So be expected to do some repairs, at the very least, cosmetic repairs. In most cases, the lenders cannot sell the homes for what is owed, because of condition and the marketplace, so they are taking a loss to list them at or below current market value. The drawback is that it is more difficult to negotiate a steal or a real good bargain, and in some cases, lenders will only pay so much of your closing cost and will almost never do any repairs. Another item of concern can be the properties deed or title. When you get into a contract on a particular property, it may have previous judgements or liens on it from the prior owners, which can take time to correct, or in some cases, may break the deal altogether. Some lenders will do a preliminary title search upon putting it up for sale, but that's not always the case. Lastly, going back to negotiations, it will take a longer period of time to negotiate terms, as usually it's not just one person's decision from the seller's stand point.

With all the negatives out of the way, let's focus on some of the positives. The biggest and most oblivious benefit for buyers to entertain purchasing an REO property would be the price. They are typically listed at a very bargain price, mainly to entice buyers to purchase so that the banks or corporations don't have to hold them for long term. As previously mentioned, they may need some repair, but if your handy or don't mind painting, then it is usually worth the sweat equity. Another plus for purchasing a home in need of repair is that it usually helps the community your planning to live in. Nobody wants to live near a vacant distressed home that has the potential to attract break-ins. So in essence, your helping to improve your neighborhood. In some cases of mid to major repairs needed, you can secure an FHA 203k loan program. With this loan, it allows you to finance the renovations into the home loan, so if you don't mind finding good quality contractors, and facilitating the rehab process, you can have a custom renovated home that mirrors exactly what your wanting in a home, and if you get a great enough deal, still have plenty of equity in the property when it's all said and done. Bottom line, if you find the right property at the right price, and don't mind doing some extra steps, you may secure a really good deal and get a great home. You have to look past the cosmetics needed, and if you do, you can get a bargain home.

If your interested in knowing more about REOs or foreclosed homes, please contact me or visit my website at www.joshsellsvirginia.com.

As we all know, the real estate market has been in a buyer's market for the last couple of years. Last year, we experienced the mortgage meltdown crisis and all the media hype that has followed. Many people ask whether the bottom is yet to come or if we have hit it yet.

There is no simple answer to this question as it is a very complex and variable situation. There are indicators however of certain trends that we may want to pay attention to. One of the most oblivious indicators is the supply of real estate vs. the number of qualified buyers. Another factor that we must pay attention to is the overall economy and how it's impact is effecting potential buyers from homeownership. Financing is another contributing factor which will directly impact a buyer's ability to get a loan. Let's look at these factors in closer detail:

First and foremost, the current inventory is a huge determiner. Keep in mind that each market in the country is different, and there is not one answer for all. Here locally in Hampton Roads, the markets have been in much better shape than others nationally. A large factor to that is our strong military presence. Over the last months, our supply of listings has been shrinking. This could be looked at in a couple of different views. First, it could be a lag in the market due to end of year and holiday season, or secondly, it could be viewed that due to the interest rate cuts and time, that the buyer pool has increased and available listings cannot keep up with buyer demands, in effect dropping the number of available homes. Time will be the deciding factor, but real estate is a supply and demand cycle.

The economy has been in decline for the last year. We began to feel the effects of a recession long before the government had announced the recession. At this point in time, if we go back to when we first felt the recession, it's been about a year. The average national recession lasts roughly 12 months, or one year. This recession however is not just limited to the United States, it has affected the world globally due primarily because our economies are tied together in so many aspects. The average global recession lasts 18 months. If we have been in a recession for a year, and the average global recession lasts 18 months, then we have about another 6 months before we see improvements. Keep in mind, that this is just speculation at this point based upon past trends.

Financinghas been topsy turby for the last 6 months. When the first wave of foreclosures hit, most lending institutions gave a knee jerk reaction and have tightened lending requirements dramatically. Once this process had occurred, the listing inventory went out of control, making the real estate market even slower than it had been. Due to this unforeseen issue, the Federal Reserve decided to cut rates. After several rate cuts, they dropped interest rates to historic lows once again. In doing so, they have helped many people once again be able to qualify for a mortgage and afford their homes. However this time, the risks we had previously with ARMS and Interest Only programs are out the window. Also, as mentioned, qualifications have been tightened.

With all of these indicators, I have personally come to the conclusion that the bottom is here, or may have already passed. These indicators have shown me that real estate is making a recovery, and only more time will completely cure the ailment. There have been many speculation reports that summer of 2009 will be the turning point, and based upon my conclusions for Hampton Roads, Virginia, I agree. One caveat I hold to this decision will be the impact the new presidential administration will have on our taxes and economy. To view local market trends, please visit www.joshsellsvirginia.com