SeattleMargo.com

For home owners that are currently in a FHA home loan there might be some good news coming your way if you have lived or purchased before May of 2009.

FHA is also taking steps to make these streamline loans more widely available by adjusting the premium structure for all Streamline Refinance transactions that are refinancing FHA loans endorsed on or before May 31, 2009.  These changes will ensure that borrowers benefit from a net reduction in their overall mortgage payment while still ensuring FHA has the resources to pay any necessary claims.<

Why is this such a great time to own a home? This is the perfect storm if you are currently renting, what makes the perfect storm for a renter – home values have declined to a price point that is close to 2003, and with the mortgage rates at serious historical lows the buying power you have to own a home is like you just purchased in 1995.

Home values in the Green Lake – Seattle, WA area for a home that is of a normal 3 bedroom 1.5 bath home with roughly 1600 square feet in 1995 depending on the exact location you would have paid 165,000.00 – 205,000.00. In today’s market of Jan. 2012 you will spend around 285,000.00 – 435,000.00, again depending on exact locations.

So if you are a renter – this is the perfect storm:

1.        Home Values Down
2.        Mortgage Rates at all-time lows
3.        Housing Supply – lots to choose from
4.        Buyer’s Market – so you now can shop around and sellers will negotiate terms, price and incentives.

See Historical Chart for Mortgages for the Year 1995:

Based on the buying power of today’s interest rates you effectively are able to purchase your home as if it was 1995! Answer these questions!

• ·         What was the popular song in Jan. 1995?
• ·         Who won the Super Bowl on Jan. 29^th 1995?
• ·         What Bombshell Beauty Married on Feb. 18^th to a motley Rocker?

See how time goes fast and looking forward where will you be in 17 years?

Here is a great artical from Paul Muolo who wrote a post about buying a home like it was 2003.

Most have us have seen the news that President Obama has used his Executive Authority and has handed down his decision to make this program benefit more homeowners that are seeking help and want to stay in their homes. Most homeowners that we have talked with see serious hurdles and frustrations when dealing with the banks when they see that they are on a Fannie Mae or Freddie Mac owned loan and have met all the specific criteria. Even though all of these criteria items are met they are still be turned down.

Here are the major changes that are true benefits for homeowners:

Are you out looking for a home around the Autumn time?

When the home buyer is out looking around in this time of the year you will see some left overs from the summer season, what typically will this mean for you? Well, often you will have a better chance to snag that home you have been keeping an eye on and might just be out of reach in price!

"The property was foreclosed, so all of those other liens are wiped out. You don't need title insurance."

I hear this all the time. And it is wrong. While it is true that most liens are wiped out by a trustee's sale; a number of liens may survive. If we assume that the trustee did their job properly and gave notice to all junior lien holders that were entitled to notice under statute then most liens and junior deeds of trust are eliminated. Any party that is entitled to notice of the pending trustee's sale that didn't receive that notice is not eliminated - in other words: you can't wipe out someone's secured interest in the property without telling them what you are doing.

Additionally, there are a small number of liens that survive the trustee's sale, even if they are subordinate to the deed of trust that is foreclosed. – Read More

Being a full time agent in the Seattle, Bellevue, Redmond, Ballard area I am asked how long will this market take to correct? I have noticed lately that the home values have come close to a bottom of the market. However what we are seeing is that homes where folks are underwater and in pre-foreclosure or greater than 60 days delinquent on their mortgages has increased in this local market.

When you are looking or facing the realization that one of your options is to do a short sale, it is imperative to have an experienced real estate agent assist you, often times they have built relationships with attorney's that specialize in this this field and they will counsel you. The real estate agent then needs to be well versed and know strong negotiation skills, as there are many intricate steps handling all the moving parts in this time of hardship on the homeowner. We understand this and are glad to point you in the right direction to help you.

Banks are seeing the true benefit of a Short Sale vs. Foreclosure - times have changed over the last few years!

Now with the costly lawsuits, properties being vacated for much longer times after the bank has foreclosed and all the back log of inventory the banks are more willing to work with the homeowner that truly wants to short sale. There are many reasons for the bank to work with the person who is seeking to do a short sale, typically the homeowner still lives in the home and the owner is helping to maintain the integrity of the inside as well as the outside of the home.

By moving in this avenue to short sale the home banks are mitigating the financial losses. When a homeowner is ready to look into the short sale process typically the bank wants the property listed with a real estate agent, on the open market to all perspective buyers, hoping this will net the bank more money and be a benefit to both homeowner and bank.

When the bank is looking at the bottom line they also want to see the homeowner doing everything they can to help reduce the loss, so being proactive is key to your success.

Short Sale is easier on your FICO Credit Score and does not damage you as badly as what a foreclosure will.

One of the Rating Agencies - Moody's has found that Short Sales help lower liquidation losses.

Short sales (where the lender agrees to accept less than the mortgage amount due on the sale of a property by a seller) have never been easy to complete. We are not suggesting that they now will be easy. However, there is mounting evidence that the banks are seriously favoring short sales over the option of foreclosure. Here is the evidence that has led us to this conclusion.

Here in our Seattle Area we at www.SeattleMargo.com have seen an increase of more BPO's (BPO definition - go to bottom of post for more info) being completed and receiving more short sale approvals if the recent few months.

Banks Net More Money on a Short Sale

RealtyTrac’s latest data tells us that a short sale sells at approximately a 10% discount. A foreclosure sells at approximately a 35% discount. Obviously, the bank will net more by agreeing to short sale than they would by bringing the home to foreclosure.

Banks Are Beginning To Pay Short Sale ‘Bonuses’