One of the most prevalent, hard-hitting issues affecting the real estate market today is foreclosure. Most people, while terrified of this word, do not understand the specifics, the process, and the anatomy surrounding the concept. While it may be a worrisome topic, it does not have to incite the terror associated with it; simply familiarizing yourself with the facts can help you rest easier. Whether you are a College Station or Bryan homeowner worried about default, a homeowner who simply wants to understand the basics, or a potential home buyer looking for a deal on a home, this information is absolutely invaluable.
For starters, rules governing foreclosure originate from the lien note and the mortgage. The lien note, also called the promissory note, is the first source. This is the document that a borrower signs pledging to pay the amount of the note according to the terms and conditions. This also contains the borrower's personal liability to repay the balance of the note if a foreclosure sale generates insufficient revenue. The mortgage, also called a Deed of Trust, is the second source I cited. When this document is signed at closing, a borrower is granting the lender a security interest in the property; it is the collateral for the loan. 
When homeowners default on their mortgage, their property is considered to be in the state of pre-foreclosure. Typically, lenders will respond quickly to the first late payment. It is preferable for them to work out a solution than to begin the foreclosure process. For this reason, a homeowner in this position would be wise to respond to the lender's letters or attempts at contact. Many options can be discussed; perhaps a lender would allow for partial payments, interest only payments, or a new program that may allow for smaller monthly payments.
The next step in the foreclosure process is called a short sale. This is where a secured real property is sold, but produces less money than is owed the lender. In this situation, the lender is essentially cutting its losses by agreeing to a negotiated sale, rather than experiencing the delay and expense of a foreclosure. Even though the lender is not on the title, at this point in the default, the lender is positioned to call the shots.
Default is the final step on the road to foreclosure. Once a default occurs, the lender may declare the full amount due and payable. For residential loans, the lender must give the homeowner 20 days written notice to either pay or make good on the payments in default. The law requires that this notice must be sent by certified mail, return receipt requested. Once this is done, the property is requested to be sold. The trustee will send a note to the debtor, and also file this note at the courthouse and in deed records. This alerts the public that the property will be sold on the first Tuesday of the month (occurring 21 days after the notice was posted and filed).
On the appointed date, a public sale will be held at or near the county courthouse. The consumer who purchases a property at a foreclosure sale is considered buying "as is." That means any repairs, liens on the home, etc. must be paid by you. That said, purchasing a foreclosed property in Bryan or College Station is an extremely profitable move during these soft market times. If you have any questions about the foreclosure process, would like help with a short sale, or want advice on purchasing a foreclosed home, feel free to contact me.
Clay Lee - Realtor
Century 21 Beal, Inc.
(979) 255-1839
Timeless Service, Quality, and Experience Guaranteed
________________________________________________________
When I am selling a Bryan/College Station home, I always offer tips to the seller concerning how to put their home in the best light for showings. First impressions are lasting impressions. And in soft market times, it is important to show your listing at its best advantage.
It is an industry fact that staged homes sell faster. When your home has been properly staged, you will have true confidence that the first impression will be a positive and lasting one. The main point of staging is to showcase the benefits of the house in the best possible light. It will make your home appear like a model home so that potential buyers can envision themselves living there. Additionally, a properly staged house appears to be in move in-ready condition. This means that potential buyers will be able to visualize their belongings and themselves in your home much more easily, which is exactly what you want.
Another benefit of a staged home is that it projects an image of being well-maintained and cared for. The underlying psychological message that is sent to the potential buyer is that it is worth more, and that they will not have to worry about inheriting costly problems to which they will have to attend and repair.
The key points to staging a home are: de-cluttering, de-personalizing, updating old/unattractive fixtures, painting, furniture arrangement, and accessorizing - so that you display your home in its best possible shape.
Generally, the following are always on the list for seller reminders of what the buying public wants to see when previewing the home. First and foremost, the exterior should be repainted or power washed as it is the first impression. (While you're focusing on the exterior, remember to power wash the driveway, sidewalk, etc.) Paint is equally important on the interior; rooms that are painted light, neutral colors show the best as they make a room appear airier, larger, and more inviting.
Some smaller, but very important tasks to complete before showing your home are:
Additionally, I've listed below some common flaws in a home that I look out for:
These are the main tips I offer to my Bryan/College Station clients when we are working together on selling their home. If you are interested in detailed staging or design tips, I am always happy to help; just give me a call! Continue to visit my blog daily for the best local, expert real estate advice!
Clay Lee - Realtor
Century 21 Beal, Inc.
(979) 255-1839
Timeless Service, Quality, and Experience Guaranteed
________________________________________________________
Home inspections have always been important for and requested by the smart buyer; now more than ever, an inspection is becoming an absolute necessity. Whether you are looking to purchase a luxury home, a mid-priced home, or a low-priced home, an inspection is equally important. And if you are one of the many consumers interested in taking advantage of the rising number of foreclosures occurring in College Station and Bryan, take note!
Home buyers must ensure they know exactly what kind of house they are purchasing, and this can best be achieved through an inspection. Not only do inspectors need to carefully examine the systems and structural components of the home, they can identify items that need to be repaired or replaced. Were the floors, ceilings, and walls well-built? An inspector will examine everything in great detail, including doors, driveways, sidewalks, windows, gutters, and lights.
Further, they can estimate the remaining useful life of major systems such as electrical, plumbing, heating, and air conditioning. A thorough test will ensure the utmost working conditions of your new home.
Another added benefit is that inspectors can also delve into the history of your potential future home. Though it sounds like a dramatic and uncommon problem, an increasing number of homes put up for sale (generally foreclosures) are being ousted as former methamphetamine labs. The main incidence is that many of these were rental homes, with landlords who were unaware of what was occurring until it was too late. A home inspection is a wise choice as it provides real estate agents and consumers with priceless knowledge and a realistic level of protection during the home-buying process.
The information gathered during an inspection can also benefit the buyer in ways that will be rewarding for years to come. Most buyers who have had a home inspection completed will gain a better familiarity with their home. The location of shut off valves, pump switches, heating and cooling filters, and breaker panels is all found in a comprehensive home inspection. The inspector will generally identify and map these items for the future dwellers.
The bottom line is, spending a few hundred dollars could end up saving you thousands of dollars in the long run. When you make a written offer on a home, you should insist that the contract state that the offer is contingent on a home inspection conducted by a qualified inspector. You will have to pay for the inspection yourself, but it could keep you from buying a house that will cost you far more in repairs down the road.
As foreclosures continue to enter the College Station and Bryan market at a drastic pace, it is important that buyers keep this advice in mind. Use a reputable and professional Realtor as well as an experienced and trained home inspector. If you have any questions about the home buying process, or would like a referral to a quality College Station or Bryan home inspector, please contact me.
Clay Lee - Realtor
Century 21 Beal, Inc.
(979) 255-1839
Timeless Service, Quality, and Experience Guaranteed
________________________________________________________
As cited in yesterday's article, almost 60 homes in College Station and Bryan have had their asking prices slashed in the recent months since the Homebuyer Tax Credit expired. Though we are certainly seeing the effects in our own community, this is a national trend that continues to grow with the passing summer months.
For example, Trulia.com reports that Southern California (one of the most expensive real estate areas in the nation) has seen its real estate landscape littered with high-profile price drops. Nicolas Cage's English Tudor in Bel-Air has been reduced an amazing 50% to $17.5 million. Suzanne Somers' home, which started at $35 million over two years ago was eventually slashed to $12.9 million.
Granted, we are not seeing such drastic price cuts locally as we do not have listings of that amount or popularity here in College Station. The listings in our area range from mid-priced luxury homes to those on the low-end. Unfortunately for College Station home sellers, these are the properties most affected by the popped housing bubble. This is due in large part to the fact that sellers of these properties have had to compete with the increasing number of cheap foreclosures entering the market. Now sellers of homes on all market levels are forced to face the reality of the current real estate situation.
Bear in mind, this does not mean that sellers can't get a good deal. On the contrary, a seller who works with an enthusiastic agent will certainly be able to achieve their goals in any type of market. When determining an asking price, a good agent starts by evaluating the prices of comparable recent sales in the area rather than looking at the prices of active listings. (This ensures a satisfactory deal for both seller and buyer; the seller will be much more likely to complete their transaction in this climate, and the buyer will be getting a fair deal based on current trends.) For reference, take a look at my recent posts based on the list vs. sold price in College Station neighborhoods; I examined both Pebble Creek and Indian Lakes to show how the current trends affect home sales in our town.
The important thing to remember is that a slow market does not equate to an impossible one. If you are a seller in College Station or Bryan concerned with getting a good deal on your home, please contact me so that we can discuss the basics. I can be reached anytime at (979) 255-1839.
Clay Lee - Realtor
Century 21 Beal, Inc.
(979) 255-1839
Timeless Service, Quality, and Experience Guaranteed
________________________________________________________
Home shoppers who missed the April 30 deadline for the Homebuyer Tax Credit ($8,000 tax refund for first time buyers) may be getting the better end of the deal after all. For a variety of reasons, home buyers could now save much more than the $8,000 tax refund.
For starters, in some neighborhoods and price ranges, sellers are dropping their prices because buyers are now harder to find; this has to do in part with the homebuyer tax credit expiring. During March and April, home sales increased drastically since buyers were scrambling to make the deadline for the tax credit. Since this has expired, home contracts and building permits have dwindled, leaving sellers with fewer buyers and the need to cut their prices. In fact, in Bryan and College Station alone, 59 sellers have reduced the asking price on their homes since May 1st.
Additionally, some builders and real estate agencies began offering promotions after the tax credit ended in an effort to reel buyers in. Further, summer prices on homes are traditionally less expensive as home buyers would like to move during the summer before school starts up.
And as an extra incentive, interest rates have dropped enough since the credit deadline that, over the life of a loan, a homeowner could easily save more than the amount of the credit. Though a drop of half a point since the end of April may not seem like much, it is huge in reality. Consider this: the buyer of a $180,000 home borrows $173,700 in mid-April at an interest rate of 5.125%. They would end up paying $377,442 over the next 30 years. That is $15,000 more than they would pay if they borrowed last week at an interest rate of 4.75%.
Though the homebuyer tax credit was highly publicized, it was certainly not the best deal of the season, nor was it the best time to buy. With the right agent to help your search, you could find your dream home at a greatly reduced overall price. Allow me to aid you in your search, whether you are casually looking or ready to move next week. Call me at (979) 255-1839.
Clay Lee - Realtor
Century 21 Beal, Inc.
(979) 255-1839
Timeless Service, Quality, and Experience Guaranteed
________________________________________________________
 |
|
|
College Station's #1 Luxury Lifestyle & Real Estate Expert for over a Decade!
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2012 ActiveRain Corp. All Rights Reserved
