Marty & Jaclyn Reiswig - Specialty: First-timers

You know that short sales have become a national problem when the Senate steps in. For the uninitiated, a short sale is a way to avoid foreclosure. The homeowner sells the house for less than the unpaid balance of his mortgage, with the lender's approval.

Short sales, in theory, are a win-win. The homeowner avoids foreclosure, the lender receives more for the property than they would if they foreclosed, and the buyer gets a great deal. Not to mention that short sales don't drag down the value of neighboring homes to the extent that foreclosures do.

But in reality, short sales are such a headache that many buyers avoid them like the plague. The majority of real estate agents polled said that short sales take from 4 to 9 months to close. Many buyers don't have the luxury of that much time. We personally have walked away from more than one short sale in our own house searches--we just didn't have the patience.

And the reason for the lengthy waiting periods? Unresponsive banks. Thus the action by the Senate.

The proposed bi-partisan legislation would give banks a 75-day deadline to respond to written offers from buyers. There is even a penalty of $1000--to be paid to the buyers--should the bank fail to comply with the language of the bill.

Moe Veissi, president of the National Association of Realtors, weighed in that due to the current time-consuming and inefficient process, many homebuyers walk away from deals that could have saved homeowners from foreclosure. "As the leading advocates for homeownership, realtors are supportive of any effort to improve the process for approving short sales."

This legislation is, to us, a welcome sign that some folks in Washington are taking common-sense measures to help the economy. Heck, we may even contact our senator and encourage him to support this bill. Speeding up the short sale process can only help the housing market recover--and that's something we can all get behind.

If you need some help selling your home, give Marty a call at 720-891-9000. He'd love to help.

We've been beating this dead horse for a while now: inventory is so low right now that there is stiff competition for homes, especially equity sales (non-short sales/foreclosures.) And now we've got a story to prove it:

Some folks who regularly read our blog decided to give it a shot and put their house up for sale. They got it all cleaned up and staged, and Marty took care of scheduling a good photographer and marketing. In one week on the market, they had 32 showings and received two offers. They went under contract (with the better offer) just one week to the day after the house hit the MLS.

We expect the number of available homes to increase as we move into the spring. That's good news for buyers. But if you're thinking of selling, it's a good idea to beat the rush and hit the market soon.

Give Marty a call at 720-891-9000 if you'd like to talk some more about why now is a great time to sell.

Beginning in April, the FHA will increase the cost of up-front mortgage insurance premiums. The increase will apply to new single-family 30-year loans. The new, higher rate is part of an effort to replenish the agency's insurance fund. Read the full story here.

Many first-time home buyers utilize FHA financing. If you're one of them, or if you're considering purchasing a home (which is a great idea considering the historically low interest rates and overall low housing prices), you may want to find a lender and complete your application before the end of March. That way, you will beat the deadline and avoid the new, higher mortgage insurance premiums.

Just a friendly heads-up!

Sellers: Pricing it Right is Key

Foreclosure filings in Colorado's metro areas have now fallen for 14 months in a row. The number of foreclosure filings last month was lower than any other January since 2008. It was also 28.2% lower than January of 2011. Read the full story here.

It's unknown exactly how the recent legal settlement regarding the handling of foreclosures will affect this trend--only time will tell.

But for now, we're taking these numbers as a good sign. Fewer foreclosures means fewer people losing their homes, as well as fewer distressed properties dragging down the values of neighboring houses.

Here's hoping that 2012 sees the market upswing we've all been hoping for!

Don't take this exit.