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Great Time to Buy a Home

June 9th, 2008 9:42 AM

Newsletter

June 2008

Belinda

(508) 446-5693

Should You Consider Buying a Home in the Current Market?
By Deanna Sletten
Photo: © Justin Horrocks / iStockphoto

The current real estate market is definitely a buyer's market. With the high availability of homes on the market and interest rates at historical lows, this is an opportune time for buyers to purchase the home of their dreams at an affordable monthly payment.

If you have been saving to purchase a first home and have a good credit score and very little debt, then this is the perfect time for you to buy a home. Not only will you have a variety of homes to choose from, some that may not have been affordable if the market had been different, but you will also be able to obtain an affordable loan payment at a low fixed-rate interest rate.

Be cautious, however, not to buy beyond your means. Consider all the costs of home ownership, such as upkeep, and taxes and insurance, before you buy.

This is a great time for renters with a stable income to consider purchasing a home. With so many homes on the market, many due to foreclosures, you may be able to find an affordable home that requires very little down. You could even look into purchasing a small home, holding it until the market turns upward, then selling it so that you can move up into a larger home.

Newly retired couples, who have their home paid for and a good retirement, may find this is a good time to purchase a vacation home. With the good interest rates and the lower home prices, they may find a good deal that they otherwise may not have been able to afford.

For those who have money to tie up, this may be a good time to purchase a home as an investment or rental. As a precaution, it is important that you can afford to hold on to the property for a while. Use your purchase as a rental property for a few years. When you're ready to sell it, you'll find you've made a good investment.

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Belinda - (508) 446-5693

Newsletter - June 2008

Belinda, Next Level Realty, 112 Arlington Avenue , Arlington MA 02464
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The material in this publication is provided for your informational purpose only and is not intended to substitute professional advice.
If your property is currently listed with a Real Estate Broker, this publication is not intended as a solicitation.
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Posted by Belinda Arroyo on June 9th, 2008 9:42 AMPost a Comment (0)

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Credit Restoration and Debt Settlement

June 6th, 2008 12:08 PM

Anyone that knows me,can tell you that I am one who gets enormous gratification from helping others. With the economy at an all time low,people can no longer pay their bills. This is why I felt that it was a sound investment to add credit restoration and debt settlement to my resume, along with real estate.Debt settlement entails reducing the amount of your unsecured debt by pennies on the dollar. Credit repair entails removing negatives from your credit report.Thus raising your fico score.Negative credit can keep you from purchasing a home, getting an apartment, insurance,car,even a job. It also results in you having to pay much higher interest rates on anything that you do get on credit. This is a problem that also impacts my business and a lot of other businesses. Its time for you to do something about your negative credit rating.Get started!Contact me if I can be of help.

Posted by Belinda Arroyo on June 6th, 2008 12:08 PMPost a Comment (0)

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IRS and Foreclosures. Information that you need

May 16th, 2008 9:32 AM

IRS Forgives Until December 31, 2009
Thursday, May 01, 2008 - By Thomas M. Mitchell

f being in default and the threat of foreclosure aren't troubling enough, the thought of the IRS coming around after the fact is sure to keep sellers up all night. They have all heard the stories of being tracked down by the tax man to pay taxes on “forgiven debt.” To them it’s like a bad dream turned into a nightmare, all summed up and justified by a bunch of letters and numbers. But not every code section is necessarily a 4 letter word.

Code Sec 108(a)(1)(B),(C) – better known as 1401, means everything to some homeowners in today’s market … but it only has meaning in light of HR 3648. Then again, Section 163(h)(3)(b) is really the key to the whole thing. Make sense to you?

It doesn’t to your homeowners either. Staring foreclosure in the face they want to know if there is anything they can do. Can you sell their house before the deadline? In most cases your answer would be no because they are completely “upside down” but there are cases in which a short sale could work. And when you broach that subject one of the first questions they may ask is “what is our tax liability if we agree to a short sale?”

While the correct response is that you are neither a tax lawyer nor a CPA, you need to be able to let them know that if they qualify there are some options that may resolve that issue. And it all ties back to December 20, 2007, when President Bush signed into law a new measure giving tax breaks to homeowners who have mortgage debt forgiven. With the passage of the Mortgage Forgiveness Debt Relief Act of 2007, a taxpayer does not have to pay federal income tax on debt forgiven for a loan secured by a qualified principal residence.

Why is this so important? In most instances, debt that is forgiven or cancelled by a lender must be included as (ordinary) income on the seller’s tax return and is taxable. There are a number of terms within the bill that are central to the issue, such as “Acquisition Indebtedness” – and you need to know them.

And don’t forget December 31, 2009. That’s the date when this tax break expires. It only applies to debts discharged from January 1, 2007 to December 31, 2009. And tell your sellers that “being insolvent” as a result of bankruptcy doesn’t count. The Short Sale is a powerful tool in the hands of a qualified real estate professional.

posted by Belinda Arroyo 5/16/08

Posted by Belinda Arroyo on May 16th, 2008 9:32 AMPost a Comment (0)

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Buying a Foreclosed Home- What you Need to know

May 7th, 2008 11:40 AM

By Jeff Cox, Special to CNBC.com |

There are thousands of Americans losing their homes every month, and banks eager to recoup some of their losses, this is perfect time to buy a foreclosed property--if you know what you're doing.

David Zalubowski / AP

The foreclosure market offers a slew of temptations, the most alluring and basic being the opportunity to get a great house at a low price.

But the road to that new cut-rate luxury McMansion is fraught with landmines. They include undiscovered liens, daunting maintenance issues and even the potential to overpay that makes the process one to enter only with eyes wide open and a team of experts close at hand.

The Three Stages of Foreclosure (click here)

"I'm seeing millions of dollars of defaulted paper coming onto the market on a daily basis and this would probably be about the best time for anyone to buy either a foreclosed home or a non-foreclosed home, depending on the city you're living in," says Steve Hochman, president of Friendly Note Buyers and author of "How to Sell Your Real Estate When Real Estate is Not Selling."

__________________________________
CNBC Special Report:

Spring Real Estate Guide

__________________________________

Foreclosures -- when banks or lenders actually take possession of the property -- have been soaring over the past year. The states with the biggest foreclosure rates include economically depressed areas like Ohio, Indiana and Michigan, as well as those where the housing boom was biggest: California, Florida and Nevada.

"There are some places such as Florida that are in a desperate situation that can't possibly come out of this problem for at least five years," Hochman says.

The way to capitalize on the trend is through basic diligence. Making sure you do your homework before going to an auction or approaching a bank that has foreclosed on a home -- the two principal ways to acquire such properties -- makes all the difference in how successful the experience will be.

A basic checklist:

Foreclosed properties are part of the public record, and newspapers of general circulation periodically publish a list before they go up for sheriff's sale. Watch the notices closely for properties near you. Word of mouth also can be a big advantage and allow you to get a jump on anyone else interested in the home.
There are various Web sites that can help locate foreclosed properties, but most require a fee. Foreclosures.com, for instance, charges $49.95 a month, while foreclosuredeals.com charges $39.95 a month.
When identifying a home you'd like to purchase, check out other properties in the area. What's the going rate?
Hire a home inspector. Even the best-looking properties can have problems that range from poor heating and ventilation to a cracked foundation. Know what you're getting into.
A real estate attorney also is advisable in order to make sure the title is clear. In states that have deed of trust laws, buyers should get a writ of possession ensuring that the previous owners cannot re-enter the home.
If you choose to hire a Realtor, make sure it's someone who's not afraid to get in the pits and fight. Hochman advises that even a bank's so-called final offer probably isn't really the lowest price it will take. "I think that the most common error is not offering a low enough price," he says. "The banks are in no position to hardball. They need to get rid of it. The impact on the bank is more than the public sees or generally understands."
Visit a bank and get pre-qualified so you know what you can afford.
In the current market climate, most pros agree that this is not the time to buy a house to flip because real estate prices aren't likely to go up significantly anytime soon. Bidders instead should be seeking a place to live. Hochman does feel, though, that the steep dropoff in prices will stop by June.

Know Your Neighborhood

Of course, every market is different, and knowing your own region,locality is important.

posted by Belinda Arroyo 5/7/08

Posted by Belinda Arroyo on May 7th, 2008 11:40 AMPost a Comment (0)

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Important information about interest rates

April 22nd, 2008 11:14 PM

Real Estate buyers are usually highly focused on the purchase price of a property. This is a legitimate concern. The purchase price is one of the most important considerations in a real estate transaction. But at the same time home buyers too frequently treat interest rates as a secondary concern. Many buyers will stress over $300 or $400 in negotiations over purchase price. But when told that interest rates dropped half a point, home buyers will often respond with a shrug.

This is frequently because it is easy to understand the difference between paying 200k and 195k for a house. But it's harder to appreciate the difference between an interest rate of 6.5% and 6.0% for a house. But interest rates can have a large influence on mortgage payments. Using a mortgage calculator first let's look at the difference between the mortgage on a 200k and the mortgage on a 195k house assuming a 6.5 percent interest rate.

200k (6.5%) Mortgage $1264.13 per month
195k (6.5%) Mortgage $1232.53 per month

The difference ends up being $31.60 a month.

Now let's look at the difference between an interest rate of 6.5% and 6.0% on a 200k house.

200k (6.5%) Mortgage 1264.13 per month
200k (6.0%) Mortgage 1199.10 per month

The difference ends up being $65.03 a month or $780.36 a year. A simple half point drop lowered the mortgage payment by 5.4 percent.

Interest rate changes are not that uncommon. We wrote a tool that graphs mortgage rates over time based on the interest rates provided by Freddie Mac. In the middle of 2007 we saw interest rates of 6.7%. At the beginning of 2008, interest rates were down to 5.75%. What is a little more interesting is when we switch the toggle on our tool from the interest rate to the mortgage on a 200k house based on the interest rate for that date http://www.escapesomewhere.com/blogim/mortgage_rates_broker.jpg. From the middle of 2007 to the beginning of 2008, we saw a drop in the monthly mortgage payment on a 200k house drop from $1290 to $1170, a difference of 9.3 percent. This is why when buyers say they are waiting for prices to drop 5%, it might be a good idea to tell them that the actual mortgage they would get on a house has already dropped by more than 5 percent.

In light of all the mortgage issues over the last few years, it highlights why home buyers should shop around for interest rates. All too frequently home buyers will go with the first mortgage person they meet under the assumption that everyone has roughly the same rates and that a half point isn't really that big of a difference. As we have seen above, a half point can make a significant difference in someone's mortgage payment.

In summary, home buyers should still focus on price because it will always be an important part of the real estate transaction. But if home buyers start to look at interest rates more closely, they will end up with more success in their real estate purchases and lower mortgage payments.

posted by Belinda Arroyo

Posted by Belinda Arroyo on April 22nd, 2008 11:14 PMPost a Comment (0)

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Do's and Dont's in buying your first home

April 19th, 2008 6:39 PM

For most people, buying a home is the most significant investment of their lives. And in spite of the doubt and confusion clouding both the financial markets and news headlines, 2008 presents many genuine real estate opportunities – especially for first-time buyers. On average, housing inventory is up, prices are stable and historical data demonstrates that purchasing a home has proven a sound long-term financial investment. However, first-time homebuyers are often understandably anxious when it comes time to making what could be the largest purchase in their life. DO:

DO utilize free online tools to arm you with as much knowledge as possible.
DO take time to access and closely review your credit score. A sound financial track record and solid credit score can help lock in a loan and lower interest rates. Checking your records with a fine-tooth comb in advance will also ensure that you catch any errors ahead of time, as well as help you better understand how lenders may perceive you.
DO explore mortgage pre-approval. Getting this early green light will help others involved with your purchase that you are serious about home ownership – and well-qualified.
DO line up your “all-star” team of professionals before game day. A team of experienced professionals will be key to making the home buying process simple and seamless. Start by interviewing and selecting a sales associate who you “connect” with. That sales associate should also be able to help you identify suitable lawyers, mortgage lenders, home inspectors and others who play a role in the process.
DO anticipate your future needs and buy for lifestyle. Try to anticipate how long you’ll live in your next home and plan for major lifestyle changes when possible. What may make a perfect starter home for a couple might not work as well when children come into the picture. Remember, people move for lifestyle reasons and your first home will likely not be your last.
DO hone in on your housing priorities. Your ideal home may have a porch, a pool and five full baths. But before you start looking, make sure to separate your “must-haves” from your “nice to haves,” so you know where you can compromise to meet your budget.

DON’T:

DON’T fall in love with the first house or neighborhood you see. That grand colonial with the picturesque view may win your heart at first glance, but don’t fall in love too fast. You need to keep an open mind to make sure you find the right fit for all your needs. At the end of your search, it may turn out that the riverfront ranch that’s closer for your commute is a better bet all-around.
DON’T buy beyond what you can afford. It’s easy to fall into that all-you-can-eat attitude when it comes to your first home purchase. You “want it all” when it comes to size, amenities, location, etc. But remember that your eyes may have a larger appetite than your wallet. Make sure that the down payment, closing costs, monthly expenses and taxes are truly within your income and savings range before you sign on the dotted line.
DON’T treat your home the way you treat your stock portfolio. It’s unrealistic and unwise to expect your housing investment to appreciate as quickly as you’d hope for your high-risk bonds. Buying for lifestyle, as opposed to trying to turn a quick profit, will help ensure that you are viewing home purchasing and ownership in the right context.
DON’T try to time the market. By the time most consumers sense a major real estate or financial market shift, the tables have typically already turned. Instead of waiting for a slim and unreliable window of time – and potentially missing out on the perfect home – buyers should focus on their own lifestyles and buy when the time is truly right for them.
DON’T jump into an exotic or confusing mortgage. When it comes to downpayments and mortgages, if it sounds too good to be true, it probably is. Be sure to read carefully through every aspect of the proposed agreements to fully understand your end of the bargain. For instance, what seems like an attractive rate now may balloon exponentially a few years down the road. So arm yourself with information and don’t be afraid to ask questions.
DON’T underestimate the value of a trustworthy real estate agent’s on-the-ground expertise. While being a savvy buyer and doing one’s homework will help on the road to homeownership, a local expert with years of negotiating experience is invaluable when it comes to scouting out the perfect home – and closing the deal.

Posted by Belinda Arroyo on April 19th, 2008 6:39 PMPost a Comment (0)

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Flip this house-you tube

April 10th, 2008 3:36 PM

http://www.youtube.com/watch?v=3aG5G38GzhU

Posted by Belinda Arroyo on April 10th, 2008 3:36 PMPost a Comment (0)

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Spring is the perfect time to buy a home

April 4th, 2008 8:56 AM

RISMEDIA, April 4, 2008-For home buyers, this might be called the “perfect spring,” when conditions have come together to create a rare and excellent opportunity to buy a home, says Diane Turton, broker of record at Diane Turton, Realtors. In fact, for the first time in 30 years, home buyers can take advantage of low mortgage rates, combined with a large selection homes that are realistically priced.

By acting now during the spring selling season families can find a home, complete the sale and move in just before the new school year. Also, there is still time purchase a vacation or second home and enjoy this summer at the shore.

“The advantages of buying a home this spring are crystal clear,” said Turton. “The wisest and most serious buyers are in the market today.”

Even though it is a perfect home buying time, knowing your options, getting prepared and bringing in the right help will make the home buying experience successful.

Following are guidelines from Turton that will help make this the perfect season to buy a home:

- Get a handle on your expenses, plan a budget and start a fund for your down payment. Although it is possible to get a mortgage with only five percent down - or even less in some cases - you can usually get a better rate and lower overall cost by putting more money down.
- Do your homework to determine how big a mortgage you can afford. Your mortgage lender can assist you with this process or you can do the work yourself with online mortgage calculators.
- Retain a good real estate sale associate who is experienced, an excellent negotiator and knows the local housing market. A real estate transaction is complicated and is difficult to complete alone. In most cases, buying a home requires completing disclosure forms, inspection reports and mortgage documents as well as getting insurance policies and taking care of many details. Finding someone who can guide you through this process will help avoid delays and costly mistakes.
- Know what kinds of other professionals you will need to make to complete the transaction. Some of these professionals include a real estate attorney, home inspector, appraiser, title company expert, tax advisor and various environmental inspectors and specialists.
- Determine your closing costs. From homeowners’ and title insurance to well water testing, there are many costs, both large and small, that a homebuyer will be expected to pay at the signing. The sales agent can provide an accurate estimate of these costs, so there are no surprises as the transaction approaches a close.

Posted by Belinda Arroyo on April 4th, 2008 8:56 AMPost a Comment (0)

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Franklin Ma. #10 IN NATION

March 26th, 2008 8:29 PM

100 Best Places to Live and Launch a Business
Greetings!
Congratulations Franklin!

Franklin is ranked #10 in the United States for Best Places to Live and Launch a business.

Franklin Ranked #10

CNN Money.com and Fortune Small Business Magazine have ranked Franklin in the top percent of places to live and launch a business in the United States. This is a great honor and recognition for Franklin as well as the region.
Fortune Small Business Magazine will be presenting the United Chamber of Commerce with a Recognition Certificate in April as commemoration for this outstanding honor.

CNN Money.com Article

Posted by Belinda Arroyo on March 26th, 2008 8:29 PMPost a Comment (0)

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The death of the home equity line

March 5th, 2008 11:28 AM

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The Death Of The HELOC...Millions Of Homeowners Feeling Fear And Panic

by Tim and Julie Harris

By Julie & Ron Harris

Most major lenders are freezing access to Home Equity Lines of Credit (HELOCs) . Millions of Americans use their HELOCs as their families security blanket to weather any unplanned financial storms. If you were planning on using your HELOC for spring home improvements, medical bills or college tuition, chances are the money has been, or will be shut off.

Most major lenders have been working together in collusion. Behind closed doors, these lenders have created a secret plan to cut off access to your home equity lines of credit.

You must be aware that the lender retains the right to cut off or reduce your line of credit at their sole discretion. Lenders are now arbitrarily reassessing properties and then locking out access for homeowners when the lenders believe the property has negative equity.

What can you do about this when you are affected?

Nothing.

From Countrywide, (this is part of a letter sent to home owners):

'Important message about your loan: At Countrywide Home Loans we are committed to helping customers sustain homeownership. As part of the commitment, and in keeping with its sound risk-management and responsible lending practices, Countrywide Home Loan is reviewing and analyzing home equity lines of credit in its servicing portfolio.

As you know, home values in many areas of the country have declined. We believe that the decline in the value of your property, from its original appraised value at the time your loan was made is significant. In accordance with the terms of your Home Equity Credit Line Agreement and Disclosure Statement (Agreement), we have elected to suspend further draws against your account as of the Effective Date above.'

More Than 122,000 Have Already Lost The Right To Borrow From Their Credit Lines And We Are Just Getting Started.

On Friday, the Los Angeles Times reported that Countrywide notified many homeowners they've lost their right to borrow against their credit lines:

'Tens of thousands of homeowners with home equity lines of credit are getting a rude surprise: They've been told by their lender that they can no longer take money out on their credit lines because sinking home prices have left them with little or no equity.

Among the lenders taking such action is Countrywide Financial Corp., which sent 122,000 letters to customers last week telling them they could no longer borrow against their credit lines. In some cases, according to the company, the borrowers are now "upside down"—the total debt on the home exceeds the market value of the property.

Calabasas-based Countrywide, the nation's largest mortgage lender, says it uses computer modeling that factors in changes in home prices to determine which customers will have their money tap shut off.'

Countrywide is not alone. This is a partial list of the Mortgage Lenders who are sending HELOC freeze letters now.

Bank of America - HELOC Freeze

Countrywide - HELOC Freeze

Chase - HELOC Freezes

CitiGroup - HELOC Freeze under review

National City - HELOC Freeze

Suntrust - HELOC Freeze

USAA Federal Savings - HELOC Feeeze

Washington Mutual - HELOC Freeze

If there was any question that consumers were feeling the financial pinch before...just wait until they are told that their homes are worth LESS than what they owe. In the words of Countrywide..."Significantly Less." What effect will this have on the economy...think this will make consumers feel more confident about housing?

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Posted by Belinda Arroyo on March 5th, 2008 11:28 AMPost a Comment (0)

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