Bryan Crabtree

What do these terms mean to you? A lot of websites, radio ads and print ads claim to have the inside scoop on foreclosures...so what's the "real deal?"

No one has the full inside scoop on foreclosures; they're all different. The only way to find great deals is to do a lot of research. First, many of the great deals that these companies advertise "they have" are simply homes for sale on the courthouse steps. These are homes that are being Foreclosed on. It's simple: the highest bidder on the steps buys the home. But, you have little time to inspect or review the condition of the home, so there is a risk for this potential increased reward.

Short Sale? What a nightmare! Unless you're buying for an investment or have plenty of time to wait, short sales tend to be very long and drawn out. A short sale is basically, where the lender or lenders of a home agree to take a shorter payoff on the mortgage so the home can sell with a clear title. This usually means that the home is being allowed to sell at current market value in a situation where the previous homeowner is upside down. There is a bit of a misconception on Short Sales that you can find a really great deal in this arena. For the most part, this is untrue. Occasionally, you can find a decent deal.

Bank-Owned? Bank Owned homes typically have been foreclosed at the courthouse steps, the bank was the highest bidder, and they now own them. Unless you are working with a Realtor who has sold several bank-owned homes, you probably are at risk here. Buying Bank-Owned homes is a complicated process that can result in a great deal of instant equity. The bank has one objective: sell the home fast and protect themselves. Typically, you cannot write contingent contracts on financing and inspection. So, to get the best deals, you MUST have a Realtor who understands how and when to inspect, what risks to take and when to walk away from a Bank-Owned home. There's also some timing elements that a knowledgeable Realtor will know about how to negotiate a better price. For instance, most banks will not take much less than full price in the first 21 (or so) days. So, if it's a deal, you better bid high, because there's likely t o be several contracts. We sold one this week, that had 4 offers and could have had several more; Do you think it would sell for less than full price? Many people, no matter how good the deal is, lose opportunities bottom-feeding and trying to "steal" a home. What I mean is that they make offers, to try and get an even better deal on a home that will sell instantly (anyway) at its list price. This is called greed. And, it will cost you the deal (almost always). If it's a "great deal" it is still going to sell in this market. Homes are still selling here everyday.

Listen to our radio show Saturday at 8am for a more in depth discussion of these topics. WTMA.com or 1250am, WTMA.

It may be hard to believe, but Forbes Magazine just ranked Charleston, SC (with a population of 666,900) as one of the 25 Strongest Housing Markets in the U.S. (Number 9 actually). It proposed a 1.1% decline in real estate values for 2009 (meaning, according to Forbes, we've almost hit bottom) and a solid bottom by late 2009.

This is a bit of reassuring news for buyers who plan to buy in 2009!!

View homes on our website at housedog.com.

Yesterdays rate cut will have little if any impact on 30-year fixed mortgage rates, which are determined by factors that operate largely outside of the Federal Open Market Committee's reach, says Keith Gumbinger of HSH Associates. "Any change in the rate has little to do with long-term mortgage rates," he says. But in its statement the Fed said it could expand a recently announced program to buy up debt and mortgage-backed securities from Fannie Mae and Freddie Mac that has already driven mortgage rates down to a very attractive 5.28 percent, according to HSH Associates. It also reiterated that it was looking at the possibility of buying long-term Treasury bonds. Both of these announcements could work to bring rates even lower.

It may help you some on the credit cards - prime floating financing and such.

A few weeks ago, I was speaking if only we could get rates down to around 4.5% through government help, it would really help the markets. And, many commented that it wasn't a good thing for the government to be involved in driving rates down. Well, for those capalists (including me), it appears the market has found the mid-4's for rates.

And the word on the street, is that we could see rates below 4% in the near future. Take advantage while it lasts as inflation fears will set in; this will be a nice "shot in the arm" but won't last long.

View our website at Housedog.com for homes in the Charleston SC and Mount Pleasant SC Area.

PHILADELPHIA (Reuters) - Fannie Mae will allow tenants to remain in their homes and avoid eviction even if the building's landlord goes into foreclosure, The Wall Street Journal reported on Sunday.

Fannie Mae, a government-controlled mortgage finance company, previously had said it would not evict tenants during the year-end holiday season.

Despite that pledge, Fannie Mae came under pressure from a legal-aid group that threatened to sue over recent evictions in Connecticut, the newspaper said in its electronic edition.

Fannie Mae plans to sign new leases with renters living in foreclosed properties owned by the company. It also would ensure that its holiday moratorium on new evictions was being followed until the new policy becomes effective in January.