Tammy Lehman

HUD announced on January 14, 2009 their latest efforts to prevent foreclosure by launching their "Keep Your Home, Know Your Loan" campaign which will kick off in Chicago, Detroit, Los Angeles, Miami, New York and Phoenix. For more information click http://www.hud.gov/news/release.cfm?content=pr09-005.cfm

This is a call to action to help families in risk of losing their homes. If you are at risk of losing your home call (877) HUD-1515

#1 Myth Sellers Are Desperate; Really only 1 in 10 sellers are desperate. Yes a seller who is being relocated will be more desperate than others. The other 9 sellers may be sellers who are selling to move down to a smaller home due to kids moving away or even sellers who are selling to move up due to a growing family. Really each sellers circumstance are different and unless you really know or ask what their reason for selling is, it doesn't necessarily mean they are desperate just because they are trying to sell their home.

#2 Myth Stupid to Buy Before Prices Have Bottomed Out; Truth is that home prices have been stable for 18+ months. Not to say that some homes are not continuing to drop this is really a very small percent of available homes on the market. Prices on foreclosed homes will continue to fall until the house sells. Every 30 days a bank owned home will be reduced until it sells. The fact of the matter is that when prices will start to rise they will rise very quickly. When that happens it is almost always too late because demand will increase immediately and most homes will be picked over at the point.

#3 Myth Today Buyers Need 20% Down To Get A Loan; Truth is FHA only requires 3 1/2 % down. Sellers can even pay the 3 1/2 % buyers closing costs. Yes these loan will require PMI but it is such a little amount usually only 1% of the loan. With today's low rates in the mid to low 5% that still is a very affordable loan.

#4 Myth It's The Worse Time To Sell; Truth is that this really depends on where you live. Some markets like Phoenix, San Diego & Detroit are on the upswing. The bonus is that if you are selling to move up to a larger home you are going to more than make up for the losses you may realize on your home sale.

#5 Myth Shop Around for Best Rate; Truth is your current lender will most likely give you the best deal because they don't want to loose you as a customer try them 1st. Also your local mortgage broker knows the availability of specific loan programs in your area. It is important that you compare interest rate, APR and closing costs not just rates with each lender.

With all the foreclosed properties in the area. Which almost always need some for of work. Whether it be just paint and carpeting or the larger projects like replacing kitchens, bathrooms, roof replacement, replacing appliances and furnaces. I though some of you might be interested in learning about FHA's 203K Rehab Loans.

http://www.hud.gov/offices/hsg/sfh/203k/203kmenu.cfm

Good News

Residential Home Sales are up 7.3% over October 2007. Chelsea, Saline and Ypsilanti are showing the most gains according to the Ann Arbor Area Board of Realtors.

Condo sales are up 31% for the region compared to October 2007 numbers.

In Ann Arbor alone the residential sales price is up 8% over October 2007 numbers.

What does this mean? It means that inventory is shrinking, homes are being priced correctly and incentives are finally driving sales in an upward direction.

In October 2007 the average sale price of a home in Ann Arbor was $306,580 in October 2008 the average home price is $330,804.

What does this mean for the rest of us? Homes will start to show an increase in surrounding communities next.

What is involved with the short sale process?

Defination: A short sale is a legally negotiated agreement between the lien holders and the mortgagor, that allows a mortgagor to sell a home for less than the amount owed on the note.

Benefits of a Short Sale: Short sales can be a win win for everyone. A win for sellers who are able to sell their property without losing their home in a foreclosure. A win for buyers because it can allow them to purchase a property at a substantial savings. And a win for the lien holders because it will prevent them from having to take a foreclosed home into inventory.

What is needed to negotiate a short sale?

1) Home needs to be listed for sale with an experienced REALTOR. A REALTOR who can successfully negotiate a short sale is absolutely imperative in the success of the sale. It is unbelieveable how many REALTORS have homes listed for sale that have absolutely no clue how to negotiate a short sale.

2) Once a sales contract is negotiated the following items need to be sent to all lien holders;

a) Bottom Lined Sales Contract

b) HUD

c) Letter of Authorization

d) Hardship Letter

e) Financial Statement

3) Persistance and Patience

I have negotiated a short sale in as little as 17 days from start to finish and as long at 94 days. Short sales can be done in a timely manner all you have to do is be persistant and patient.

In 2007 the Mortgage Forgiveness Act put an end to taxing mortgagors on the loss given. Thank you President Bush for realizing that mortgagors loosing their home don't need the extra burden of paying income tax on the loss given.