Charlotte NC and National real estate market update...
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Showing posts with label foreclosure. Show all posts
Showing posts with label foreclosure. Show all posts
Tuesday, March 8, 2011
Friday, February 5, 2010
Don’t (Necessarily) Say No To A Foreclosed Home - and other reasons to BUY NOW!
Sometimes during our search for real estate in the Charlotte area, we might overlook foreclosed homes--since there are so many great properties available. The forclosure seizure often leaves a stigma on these properties, but one that is fairly misunderstood. Foreclosed homes are often in just as good of condition as any other home on the market. But the benefits of buying a foreclosure home have never been better, thanks to two major factors. Home prices are at record lows and rare government incentives are available for a limited time…But neither factors will last forever!
Record levels of foreclosures hitting the market at the same time in Charlotte is keeping their prices low, and dropping. While their isn’t much wiggle room or bargaining with these properties, they are always deeply discounted… Many at a rock bottom price, and they probably won’t last, so consider buying now. The economy is already beginning to rebound, and the foreclosed homes will not stay on the market for long.
Now to the tax credit…The foreclosure tax credit gives buyers of foreclosed properties a $7,000 tax credit. This credit is to be divided equally between the two years following the home’s purchase. (For married couples filing separately, the credit will be divided into $3,500 per person.) One catch is that the credit is only available for real estate bought as your principle residence – not as investment property. You’d have to use the home as your home for the 24 months following the purchase date in order to receive the full $7,000 credit.
Record levels of foreclosures hitting the market at the same time in Charlotte is keeping their prices low, and dropping. While their isn’t much wiggle room or bargaining with these properties, they are always deeply discounted… Many at a rock bottom price, and they probably won’t last, so consider buying now. The economy is already beginning to rebound, and the foreclosed homes will not stay on the market for long.
Now to the tax credit…The foreclosure tax credit gives buyers of foreclosed properties a $7,000 tax credit. This credit is to be divided equally between the two years following the home’s purchase. (For married couples filing separately, the credit will be divided into $3,500 per person.) One catch is that the credit is only available for real estate bought as your principle residence – not as investment property. You’d have to use the home as your home for the 24 months following the purchase date in order to receive the full $7,000 credit.
Would you like more information about the Mint Hill, Matthews and Charlotte area real estate market?
Check out http://www.minthillrealty.com/
Check out http://www.minthillrealty.com/
Wednesday, December 30, 2009
Tips for Buying Foreclosures in the Charlotte Area
Many Charlotte area residents are considering foreclosed properties either as first-time home-buyers, or as investors. The number of available foreclosed homes is incredibly high--at 1.5 million right now, and more are expected to be available soon. This means great opportunities for bargain hunters, and plenty of possible pitfalls for home buyers as well!
Here are 7 tips for making sure you get a foreclosure that is right for you.
1. Don't get caught up in the "foreclosure frenzy"
Everyone loves a great deal and the idea of getting a home for a bargain, or even for less than it is worth can make people pretty excited--but that doesn't mean you should forget your common sense! Banks put repossessed homes back on the market at below-market prices because quick sales help avoid the expenses of keeping the home up, the property taxes, the insurance, heat and electricity. They need to get these houses off their books (and onto yours!) so they are willing to make a deal.
Those hard-to-believe prices may be golden opportunities, but they may also attract a frenzy of buyers who may bid the homes up until they are no longer bargains. Don't get caught up in a bidding war, and find yourself spending more than you can--or should for a property. Carefully consider what you want to spend, and when the home reaches that point in the bidding process, move on.
2. Contact lenders directly
Buyers looking for an edge, should establish relationships with asset managers at banks. The asset managers may know when new foreclosures hit the market, and can give you a competitive advantage. In the case of a short sale, you should talk directly to the property's asset manager. That way, if the short sale falls through and the bank repossesses the house, the asset manager knows you are still interested, and you could be in a situation where you get the advantage of a quick sale without other bidders.
3. Get pre-approved from "their" bank
If you're trying to buy a property from a certain bank, take the extra step to get a pre-approved mortgage from them. Lenders may be more inclined to accept your bid if they know they are also getting your business in the deal. (And you can always change lenders laters)
4. Consider fixer-uppers
Most bank owned properties, are "sold as is", and many foreclosed homes are in less-than-perfect condition. Since the former owners were often struggling to pay their bills before the foreclosure, they may have neglected routine maintenance, or even the big stuff"--or they chose to trash the property before vacating, removed the majot appliances, fixtures, wiring and other important pieces of a home.
While some lenders will make some repairs before the sale closes, many would rather sell the house to the next available bidder, so be willing to consider a home that needs some work, and just budget the repairs into your overall investment numbers.
5. Work with a real estate attorney
Once the bank agree to the sale, they will often want to move fast--and the real estate contracts are full of legalese that can be hard to understand. Choosing to work with a real estate attorney is a great solution, even in states where they are not required. A real estate attorney can assist you in making sure the contract is equitable and the property you are buying really is a deal!
6. Wait to make an offer
It may work in your favor to wait before making an offer on a property you really like. Let the house sit on the market a few days, and then talk to the agent--they may give you some kind of clue as to what a good number is compared to bids that have already come in--especially on a home that has LOTS of interest (but don't wait TOO long--a day or two will usually be plenty in a hot market).
7. Have an inspector and/or contractor look at the property
It is true with any home--but especially so with foreclosed properties...it pays to have a professional look at the "structure" and potential problem areas of the home before you make an offer. A professional home inspector and/or a contractor will be able to tell you about foundation cracks, heating and cooling systems, roofing issues and other needed repairs, and what it will cost to make the repairs, and get the home in working condition. A contractor may also be able to tell you what "could" be done in the future to make that home more livable, such as a patio or sunroom, or other additions.
Would you like more information about the Mint Hill, Matthews and Charlotte area real estate market? Check out http://www.minthillrealty.com/
Here are 7 tips for making sure you get a foreclosure that is right for you.
1. Don't get caught up in the "foreclosure frenzy"
Everyone loves a great deal and the idea of getting a home for a bargain, or even for less than it is worth can make people pretty excited--but that doesn't mean you should forget your common sense! Banks put repossessed homes back on the market at below-market prices because quick sales help avoid the expenses of keeping the home up, the property taxes, the insurance, heat and electricity. They need to get these houses off their books (and onto yours!) so they are willing to make a deal.
Those hard-to-believe prices may be golden opportunities, but they may also attract a frenzy of buyers who may bid the homes up until they are no longer bargains. Don't get caught up in a bidding war, and find yourself spending more than you can--or should for a property. Carefully consider what you want to spend, and when the home reaches that point in the bidding process, move on.
2. Contact lenders directly
Buyers looking for an edge, should establish relationships with asset managers at banks. The asset managers may know when new foreclosures hit the market, and can give you a competitive advantage. In the case of a short sale, you should talk directly to the property's asset manager. That way, if the short sale falls through and the bank repossesses the house, the asset manager knows you are still interested, and you could be in a situation where you get the advantage of a quick sale without other bidders.
3. Get pre-approved from "their" bank
If you're trying to buy a property from a certain bank, take the extra step to get a pre-approved mortgage from them. Lenders may be more inclined to accept your bid if they know they are also getting your business in the deal. (And you can always change lenders laters)
4. Consider fixer-uppers
Most bank owned properties, are "sold as is", and many foreclosed homes are in less-than-perfect condition. Since the former owners were often struggling to pay their bills before the foreclosure, they may have neglected routine maintenance, or even the big stuff"--or they chose to trash the property before vacating, removed the majot appliances, fixtures, wiring and other important pieces of a home.
While some lenders will make some repairs before the sale closes, many would rather sell the house to the next available bidder, so be willing to consider a home that needs some work, and just budget the repairs into your overall investment numbers.
5. Work with a real estate attorney
Once the bank agree to the sale, they will often want to move fast--and the real estate contracts are full of legalese that can be hard to understand. Choosing to work with a real estate attorney is a great solution, even in states where they are not required. A real estate attorney can assist you in making sure the contract is equitable and the property you are buying really is a deal!
6. Wait to make an offer
It may work in your favor to wait before making an offer on a property you really like. Let the house sit on the market a few days, and then talk to the agent--they may give you some kind of clue as to what a good number is compared to bids that have already come in--especially on a home that has LOTS of interest (but don't wait TOO long--a day or two will usually be plenty in a hot market).
7. Have an inspector and/or contractor look at the property
It is true with any home--but especially so with foreclosed properties...it pays to have a professional look at the "structure" and potential problem areas of the home before you make an offer. A professional home inspector and/or a contractor will be able to tell you about foundation cracks, heating and cooling systems, roofing issues and other needed repairs, and what it will cost to make the repairs, and get the home in working condition. A contractor may also be able to tell you what "could" be done in the future to make that home more livable, such as a patio or sunroom, or other additions.
Would you like more information about the Mint Hill, Matthews and Charlotte area real estate market? Check out http://www.minthillrealty.com/
Saturday, September 5, 2009
Buying a Foreclosure
If you are considering the purchase of a foreclosed property, down payment and closing cost assistance is available to those who meet eligibility requirements.
The 5-year, 0% percent interest deferred loans are currently up to as much $14,900. The loans may be forgiven at 20 percent per year for each full year you own and live in the property. At the end of 60 months (or at the time of sale, refinance, or non-owner occupancy), you must be current on the mortgage to qualify for forgiveness of the loan.
The details:
- Borrowers cannot have owned a home within the last three years.
- Income limits for Mecklenburg County start at $55,850 for a 1 person household and go up to $75,000 for a four person household
- Sales price cannot exceed $210,000
- $14,900 is given as a ‘silent second’ (no interest accrues, no payments made)
- The funds can be used for down payment / closing costs
- The loan is forgiven after five years of the homeowner occupying the home as their primary residence
- 8 hours of classroom home buyer counseling from a HUD-approved housing counselor are required
Details can be found here: http://www.nchfa.com/Homebuyers/HBbuyingforeclosure.aspx
If you have any questions, or have a client who you believe may qualify, please call or email me. There is a limited amount of money NCHFA has to go towards this program and I want your clients to receive it!
Have a wonderful weekend and call if I may be of assistance at 704-564-0807
Rich Ferretti
Mint Hill Realty
Want more information about the Mint Hill, Matthews and Charlotte area real estate market?
Check out www.minthillrealty.com
The 5-year, 0% percent interest deferred loans are currently up to as much $14,900. The loans may be forgiven at 20 percent per year for each full year you own and live in the property. At the end of 60 months (or at the time of sale, refinance, or non-owner occupancy), you must be current on the mortgage to qualify for forgiveness of the loan.
The details:
- Borrowers cannot have owned a home within the last three years.
- Income limits for Mecklenburg County start at $55,850 for a 1 person household and go up to $75,000 for a four person household
- Sales price cannot exceed $210,000
- $14,900 is given as a ‘silent second’ (no interest accrues, no payments made)
- The funds can be used for down payment / closing costs
- The loan is forgiven after five years of the homeowner occupying the home as their primary residence
- 8 hours of classroom home buyer counseling from a HUD-approved housing counselor are required
Details can be found here: http://www.nchfa.com/Homebuyers/HBbuyingforeclosure.aspx
If you have any questions, or have a client who you believe may qualify, please call or email me. There is a limited amount of money NCHFA has to go towards this program and I want your clients to receive it!
Have a wonderful weekend and call if I may be of assistance at 704-564-0807
Rich Ferretti
Mint Hill Realty
Want more information about the Mint Hill, Matthews and Charlotte area real estate market?
Check out www.minthillrealty.com
Friday, July 17, 2009
JUST LISTED: 1039 Counselors Drive
GREAT DEAL!
Pre-Foreclosure Home: Approved for Short Sale
Listed at: $159,000
Just Listed: 1039 Counselors Drive in Monroe, NC. MLS # 872975.
This 3 bedroom, 2.5 bath home is located on a cul-de-sac and features a large bonus room. The open floor plan has a fireplace and has french doors leading to a patio and large backyard
Want more information about the Mint Hill, Matthews and Charlotte area real estate market?
Check out http://www.minthillrealty.com/
Tuesday, August 26, 2008
Existing home sales rise...What it means for you
Sales by homeowners increased more than expected in July, as median prices fell 7% from July 2007. But supplies still rise to a record high, pushing prices even lower.
CNN Money reported this week that sales of existing homes rose more than expected in July, but prices continued to fall. Partly this is because of an increase in foreclosures. Sales volume is increasing because pricing is getting more aggressive, but these lower prices are causing overall sales numbers to be lower than last year.
So what does this mean to you? If you are selling your house, it means that your lower price may attract more attention from hungry buyers. You have plenty of competition, but there are people out there looking for a great deal. If you are looking to buy—this is a great time to make that investment, and there are even additional incentives:
resident Bush is responding to the struggling housing market. The President signed the Housing and Economic Recovery Act late last month. The bill includes a temporary tax credit of up to $7,500 for first-time home buyers who haven't purchased a home in three years. To qualify buyers must earn less than $75,000 - or $150,000 for a couple - after which point the tax credit begins to phase out.
Want more information about the Charlotte area real estate market? Check out www.richferretti.com
Thursday, May 22, 2008
Are some cities bust-proof?
You may be surprised to find out that there are some cities, Manhattan, Austin Texas and our own Charlotte North Carolina that have been weathering and even growing in the current market.
The real estate downturn has spread across the country ever since the credit crisis first began eight months ago. But there are some areas where that seem to be immune to the crunch or at least resilient—places like Charlotte, NC.
This is a natural cycle and right now we have a healthy buyer’s market as well as positive property value growth. This area has done really well, because it never got over-inflated, the economy here is strong and there are many great places to live.
While there have been changes, less new builds and increased sale sell times, Charlotte continues to show promise as a city which can not only survive but grow in the coming months.
So what if you aren’t looking to move? Smart investors can get in on some great opportunities right now. Since Charlotte remains a hot-spot people are still moving here at a record-pace. That said, many are coming from areas of the country where they are having problems selling their homes. This causes an increase in time a house here will be on the market and will lower the sale price. As the market strengthens around the country, there will likely be an influx of newcomers in the coming years. An investor who can sit on or rent out a home may stand to make a tidy profit.
Charlotte is one of the best cities to live in the US. The economy is good, the weather is near perfect and the people are welcoming—and it is still a great place to buy (and sell!) real estate!
Read more about bust-proof real estate markets.
The real estate downturn has spread across the country ever since the credit crisis first began eight months ago. But there are some areas where that seem to be immune to the crunch or at least resilient—places like Charlotte, NC.
This is a natural cycle and right now we have a healthy buyer’s market as well as positive property value growth. This area has done really well, because it never got over-inflated, the economy here is strong and there are many great places to live.
While there have been changes, less new builds and increased sale sell times, Charlotte continues to show promise as a city which can not only survive but grow in the coming months.
So what if you aren’t looking to move? Smart investors can get in on some great opportunities right now. Since Charlotte remains a hot-spot people are still moving here at a record-pace. That said, many are coming from areas of the country where they are having problems selling their homes. This causes an increase in time a house here will be on the market and will lower the sale price. As the market strengthens around the country, there will likely be an influx of newcomers in the coming years. An investor who can sit on or rent out a home may stand to make a tidy profit.
Charlotte is one of the best cities to live in the US. The economy is good, the weather is near perfect and the people are welcoming—and it is still a great place to buy (and sell!) real estate!
Read more about bust-proof real estate markets.
Want more information about the Charlotte area real estate market? Check out www.richferretti.com
Monday, May 5, 2008
Charlotte Home Values
The housing market is on everyones minds these days, and not a day goes by that we don't read or hear something in the news about housing values, foreclosures, or mortgages. Allen Norwood of The Charlotte Observer did an opinion article recently about home values in Mecklenburg Country. And while there is a silver lining here in Charlotte in that overall our market is holding or growing--something no other city in the country can say--we of course have areas that are doing better than others. In Norwood's article he compares the Mecklenburg areas and also says:
The statistics are available online at www.carolinahome.com.
Average home prices are down across the country, according to the respected Case-Shiller report – but up slightly in Charlotte.
The statistics are available online at www.carolinahome.com.
Want more information about the Charlotte area real estate market? Check out www.richferretti.com
Sunday, April 13, 2008
Charlotte Realty: All doom and gloom or is there a silver lining?
If you read the Charlotte Observer today - you may think the Charlotte real estate market is all "doom and gloom." And while we are experiencing a higher-than-usual amount of foreclosures, I am here to tell you that Charlotte has a comparatively strong real estate market.
Essentially, like all over the country, people got into mortgage situations that they could not handle. For whatever reasons: bad decisions, mortgage brokers pushing adjustable rates, the economy, it has all come to a head over the last few months, and Charlotte is not immune to that.
Now, despite the national, (and growing global) problems with the real estate markets, Charlotte has in fact, remained strong--even grown, but that doesn't mean that there aren't a higher percentage of foreclosures than we are accustomed, or comfortable with.
So what does this mean for you? If you are looking at moving to Charlotte within the next 6 months to a year, it means you should get your house ready, and on the market ASAP. Other markets are having record-long selling cycles, and you need the time to sell yours. You should think long and hard before buying a new home here before your current house is sold. You may get caught with 2 mortgages, and I believe this is the case for a high percentage of the foreclosures here in Charlotte.
Now, if you are nearing a foreclosure situation right now, do what you can to avoid missing payments. Once you have missed several mortgage payments in a row, it will become increasingly difficult to refinance. Look at ways to cut expenses, or borrow money until you can refinance. If the house you are in is not one that you can continue to pay for, look to sell as soon as possible - even if it is at a loss. This will sting in the short-run, but is better than being without a house and having to go through bankrupsy. Cut your losses before things get worse.
Now, If you are in a good financial situation, this is a perfect market for considering investment property, or for getting a good deal on a new home. Foreclosures are not only often a great bargain, but so are the other homes in the Charlotte market. Historically Charlotte has drawn newcomers because of our healthy economy and good housing prices, and that is still true. Additionally, we are in a strong buyer's market. If you can and want to buy - this is the time!
I would be happy to discuss the Charlotte real estate market and if now is a good time to buy for you - please comment below.
- Rich Ferretti
Want more information about the Charlotte area real estate market? Check out www.richferretti.com
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- Charlotte North Carolina Real Estate Professional. Visit our site www.RichFerretti.com