Moriah Martin - Lehigh Valley REALTOR®

Lehigh Valley Foreclosure & Short Sale Realtor Blog -Tips for Buyers & Seller's - Written & Created by a Certified Foreclosure & Short Sale Agent.

Finally, ALL THE ANSWERS YOU NEED - Directly from a Foreclosure & Short Sale Specialist - AND If they are not here when you come - JUST ASK and I will ANSWER!

A Blog Filled with Monthly Tips/Tricks/Advice ONLY about Lehigh Valley Foreclosures & Short Sales

Coming Soon. I will have 10 posts created and online by November 15, 2010. (at least)

5 Posts for Buyer's Relating to Buying Foreclosures & Short Sales ONLY.

5 Post for Seller's Relating to Avoiding Foreclosure & Selling as a Short Sale ONLY.

I can not wait to get started.....I will see you soon!

Lehigh Valley Homes and Real Estate: 5 Property Tax Questions You Need to Ask

1. What is the assessed value of the property? Note that assessed value is generally less than market value. Ask to see a recent copy of the seller’s tax bill to help you determine this information.

2. How often are properties reassessed, and when was the last reassessment done? In general, taxes jump most significantly when a property is reassessed.

3. Will the sale of the property trigger a tax increase? The assessed value of the property may increase based on the amount you pay for the property. And in some areas, such as California, taxes may be frozen until resale. In Lehigh and Northampton County areas, Re-assessments are NOT triggers by the sale of a property.

4. Is the amount of taxes paid comparable to other properties in the area? If not, it might be possible to appeal the tax assessment and lower the rate.

5. Does the current tax bill reflect any special exemptions that I might not qualify for?

Other Helpful Information - Things you just gotta know! trust me.

Lehigh Valley Specialty Mortgages: Risk and Rewards
Lehigh Valley Lender Checklist: What You Need for a Mortgage
5 Factors That Decide Your Credit Score in the Lehigh Valley
Top 5 Common First-Time Home Buyer Mistakes

Reprinted from REALTOR® magazine (REALTOR.org/realtormag) with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2008. All rights reserved.

Lehigh Valley Real Estate & Homes - Common First-Time Home Buyer Mistakes

1. They don’t ask enough questions of their lender and end up missing out on the best deal.

2. They don’t act quickly enough to make a decision and someone else buys the house.

3. They don’t find the right agent who’s willing to help them through the homebuying process.

4. They don’t do enough to make their offer look appealing to a seller.

5. They don’t think about resale before they buy. The average first-time buyer only stays in a home for four years.

Other Helpful Information - Things you just gotta know! trust me.

Lehigh Valley Specialty Mortgages: Risk and Rewards
Lehigh Valley Lender Checklist: What You Need for a Mortgage
5 Factors That Decide Your Credit Score in the Lehigh Valley
5 Property Tax Questions You Need to Ask

Source: Real Estate Checklists and Systems, www.realestatechecklists.com
Reprinted from REALTOR® magazine (REALTOR.org/realtormag) with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2008. All rights reserved.

Lehigh Valley Mortgage and Real Estate: Specialty Mortgages: Risks and Rewards

In high-priced housing markets, it can be difficult to afford a home. That’s why a growing number of home buyers are forgoing traditional fixed-rate mortgages and standard adjustable-rate mortgages and instead opting for a specialty mortgage that lets them “stretch” their income so they can qualify for a larger loan.

But before you choose one of these mortgages, make sure you understand the risks and how they work.

Specialty mortgages often begin with a low introductory interest rate or payment plan — a “teaser”— but the monthly mortgage payments are likely to increase a lot in the future. Some are “low documentation” mortgages that come with easier standards for qualifying, but also higher interest rates or higher fees. Some lenders will loan you 100 percent or more of the home’s value, but these mortgages can present a big financial risk if the value of the house drops.

Specialty Mortgages Can:

• Pose a greater risk that you won’t be able to afford the mortgage payment in the future, compared to fixed rate mortgages and traditional adjustable rate mortgages.
• Have monthly payments that increase by as much as 50 percent or more when the introductory period ends.
• Cause your loan balance (the amount you still owe) to get larger each month instead of smaller.

Common Types of Specialty Mortgages:

• Interest-Only Mortgages: Your monthly mortgage payment only covers the interest you owe on the loan for the first 5 to 10 years of the loan, and you pay nothing to reduce the total amount you borrowed (this is called the “principal”). After the interest-only period, you start paying higher monthly payments that cover both the interest and principal that must be repaid over the remaining term of the loan.

• Negative Amortization Mortgages: Your monthly payment is less than the amount of interest you owe on the loan. The unpaid interest gets added to the loan’s principal amount, causing the total amount you owe to increase each month instead of getting smaller.

• Option Payment ARM Mortgages: You have the option to make different types of monthly payments with this mortgage. For example, you may make a minimum payment that is less than the amount needed to cover the interest and increases the total amount of your loan; an interest-only payment, or payments calculated to pay off the loan over either 30 years or 15 years.

• 40-Year Mortgages: You pay off your loan over 40 years, instead of the usual 30 years. While this reduces your monthly payment and helps you qualify to buy a home, you pay off the balance of your loan much more slowly and end up paying much more interest.

Questions to Consider Before Choosing a Specialty Mortgage:

• How much can my monthly payments increase and how soon can these increases happen?
• Do I expect my income to increase or do I expect to move before my payments go up?
• Will I be able to afford the mortgage when the payments increase?
• Am I paying down my loan balance each month, or is it staying the same or even increasing?
• Will I have to pay a penalty if I refinance my mortgage or sell my house?
• What is my goal in buying this property? Am I considering a riskier mortgage to buy a more expensive house than I can realistically afford?

Be sure you work with a REALTOR® and lender who can discuss different options and address your questions and concerns!

Learn about the NATIONAL ASSOCIATION OF REALTORS® Housing Opportunity Program at www.REALTOR.org/housingopportunity. For more information on predatory mortgage lending practices, visit the Center for Responsible Lending at www.responsiblelending.org.

Other Helpful Information - Things you just gotta know! trust me.

Lehigh Valley Specialty Mortgages: Risk and Rewards
5 Factors That Decide Your Credit Score in the Lehigh Valley
Lehigh Valley Homes and Real Estate: 5 Property Tax Questions You Need to Ask

Common First-Time Home Buyer Mistakes TOP 5

Reprinted from REALTOR® magazine (REALTOR.org/realtormag) with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2008. All rights reserved.

Lehigh Valley Homes & Real Estate - Lender Checklist: What You Need for a Mortgage - Perfect for Home Buyers in the "just looking" Stage.

When you are in the "just looking" stages of Buying a Home is when you should start gathering all the documentation that will be needed to help you get a lehigh Valley Mortgage on your new home.

• W-2 forms — or business tax return forms if you're self-employed — for the last two years for every person signing the loan.
• Copies of at least one pay stub for each person signing the loan.
• Account numbers of all your credit cards and the amounts for any outstanding balances.
• Copies of two to four months of bank or credit union statements for both checking and savings accounts.
• Lender, loan number, and amount owed on other installment loans, such as student loans and car loans.
• Addresses where you’ve lived for the last five to seven years, with names of landlords if appropriate.
• Copies of brokerage account statements for two to four months, as well as a list of any other major assets of value, such as a boat, RV, or stocks or bonds not held in a brokerage account.
• Copies of your most recent 401(k) or other retirement account statement.
• Documentation to verify additional income, such as child support or a pension.
• Copies of personal tax forms for the last two to three years.

Other Helpful Information - Things you just gotta know! trust me.

Lehigh Valley Specialty Mortgages: Risk and Rewards

5 Factors That Decide Your Credit Score in the Lehigh Valley

Lehigh Valley Homes and Real Estate: 5 Property Tax Questions You Need to Ask

Common First-Time Home Buyer Mistakes TOP 5

Reprinted from REALTOR® magazine (REALTOR.org/realtormag) with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2008. All rights reserved.