Buyer’s often find themselves watching a property for a price reduction. Although getting the best deal possible when purchasing Dallas real estate is important, it is not the only factor that determines monthly payments on a home. Rising interest rates nearly diminish the positive aspects of waiting for prices to drop. 

Most people are familiar with the basic trends in real estate that have been affected by the United States economic crisis. The listing prices of homes have been steadily declining over the past couple years. This has put people looking to purchase Dallas real estate at an advantage over those trying to sell. People have best described this as a buyer’s market due to the low property prices and reasonable interest rates. However, the decline in prices is stabilizing while interest rates are beginning to inch up. It is becoming more and more popular for investors to make offers on properties, sometimes sweeping the property away from home buyers. Could buyers begin loosing their advantage? Today, properties that are correctly listed at a reasonable asking price are not being reevaluated and reduced as often. These are some of the factors that prove lower Dallas real estate prices are not always worth the wait. 

(more…)

In order for you to qualify for a short sale when selling your Plano home or DFW area home, you must show proof of a financial hardship. Proof must be in the form of a signed letter submitted to the mortgage company along with additional support documentation.

Acceptable Financial Hardships

A hardship is a material change in your financial situation that is or will affect your ability to pay the mortgage on your Plano TX home. Acceptable hardships are:

1. Loss of job
2. Business failure
3. Damage to property
4. Death of a spouse
5. Death of family members
6. Severe illness
7. Inheritance
8. Divorce
9. Mandatory job relocation
10. Medical bills
11. Military service
12. Payment increase or mortgage adjustment
13. Insurance or tax increase
14. Reduced income
15. Separation
16. Too much debt
17. Incarceration

Also, you must be financially insolvent for the lender to consider accepting a short sale. This means you owe more on your Plano TX home than you have in liquid cash or assets that could be used to buy-down the mortgage. A short sale is not a ‘get out of your mortgage Free card’. You must be in financial distress.

If you or someone you know are in a distress situation, don’t hesitate. Call me at 972-562-0896! Every moment counts. I am a Certified Distressed Property Expert, specializing in Short Sales and I can help save your your home and your family!

North Dallas home owners who are behind on their mortgage payments have options other than foreclosure. Below are possible strategies to avoid foreclosure.

Short Sale
Lender agrees to sell the property for less than the loan balance for homeowners facing a hardship.

Mortgage Loan Reinstatement
Paying all missed payments, late fees, and legal fees that are due up to the date the loan is re-instated.

Forbearance or Re-Payment Plan
Negotiating a repayment plan to pay the monies due over a period of time.

Mortgage Modification
The interest rate is lowered on the existing loan to lower the payments.

Refinance
The loan is replaced with new financing at lower interest rates. Sometimes the homeowner’s credit is too badly damaged for this option.

Short-Refi
Refinancing with a reduction in the principal balance, as well as the interest rate.

Rent the Property
Lease the property to keep up with mortgage costs.

Deed-in-Lieu of Foreclosure
Referred to as a ‘friendly foreclosure,’ with the homeowner giving the deed back to the bank.

Service members Civil Relief Act (SCRA)
Temporary relief provided to service members.

Bankruptcy
Bankruptcy stops foreclosure giving the homeowner time to reorganize his debt.

As a trained Certified Distressed Property Expert, I have the skill and knowledge needed to help assess your individual situation so you can choose a strategy to avoid foreclosure based on an educated decision. Give me a call for a private consultation. I can help save you, your family and your home.

Recent statistics show over 12 percent of all United States mortgages are in default, meaning more than 8,760,000 families are in distress situations and facing possible foreclosure of their homes.  If you are a Plano TX home owner in distress, I can help. As a Certified Distress Property Expert (DCPE), I have the experience and training to help families in distress.

Foreclosure is not the only option for Plano TX home owners. A short sale may be able to save you, your family and your home. When I suggest a short sale to many Plano TX and DFW area home owners, they often ask, “What is a short sale?”

A short sale is when you owe an amount on your property that when combined with closing costs and commissions is higher than the current market value.

A short sale can take place when a negotiation is entered into with your mortgage company or companies to accept less than the full balance of the loan at closing. A buyer closes on the property and the property is considered ’sold short’.

A short sale is a very involved process that takes time, patience, good communication skills, organization and professionalism. I have the skills necessary to help you save your home.

If you or someone you know is behind on your payments or have a hardship situation, give me a call for a private consultation. Together we can look at your options and plan a course of action to save your Plano TX or DFW area home. My team covers the entire DFW Metroplex

One man’s loss is another man’s gain. This is the case with Dallas home buyers who are interested in buying a home built by luxury home builder Toll Brothers.

Recently, Toll Brothers started offering a 3.99 percent fixed-rate mortgage for loans $417,000 or below for 30 years with no points.This rate is well below the national average of slightly less than 5 percent and lower than most other builders are offering.

The plan is to entice Dallas home buyers to get off the fence and sign on the dotted line, but it remains to be seen how many sales the lower interest rate will generate. 

A $400,000 30-year fixed rate loan at 3.99 percent versus a loan at 5% will save you $240 per month on your mortgage payment and save you a total of $86,382 in interest overall…quite a savings!

Other builders haven’t immediately followed suit, but “it’s definitely something that if they haven’t considered it already, they will,” said Brent Anderson, vice president of investor relations for Meritage Homes Corp., which doesn’t have a mortgage subsidiary.

Centex Corp. and Lennar Corp. have bought down mortgages, offering buyers 3.5 percent for the first two years. The rate then locks in at 4.5 percent.

Are you a Dallas home buyer wanting to take advantage of this opportunity? Please call me at 972-562-0896 and I will be happy to help you find the Toll Brothers home of your dreams.

Search all Dallas homes for sale

There has been much publicity about the first-time home buyers income-tax credit passed by Congress last fall. But how does this tax credit work and how will it help Dallas home buyers?
 
To qualify for the tax credit, the home buyer cannot have owned a home in the previous three years. The home must be a principal residence and purchased between April 9, 2008 and July 1, 2009.

The credit is equal to 10 percent of the purchase price, up to $7,500. Single taxpayers with modified adjusted gross income (MAGI) up to $75,000 and couples with MAGI up to $150,000 will qualify for full credit. Singles with MAGI up to $95,000 and couples with MAGI up to $170,000 will get a reduced amount. Those with higher incomes don’t qualify.

If the amount of tax a home buyer owes is less than the amount of the credit, they get to keep the difference in the form of an IRS refund.

There is the catch, however, the home buyer must begin to repay the credit in two years in increments of about $500 a year over a 15-year period for those who received the full credit

Home buyers who sell their home before the credit is repaid must pay off the loan with any profits. If they sell the home at a loss, the loan is forgiven. 

The tax credit is due to expire in mid-2009. The National Association of Realtors® is lobbying Congress to extend this date, as well as, make the credit available to all buyers and to eliminate the repayment requirement. 

If you are Dallas home buyer, the tax credit may be just what you need to give you the cash needed for a down payment or closing costs. You just need to plan the repayment into your budget. Texas offers numerous first-time home buyer loan programs you might want to consider. Visit TexasHomeCentral.com or give me a call. I am glad to discuss your options with you. 

Search all Dallas homes for sale.

There is so much negative press about the lending industry these days, many Dallas first time home buyers are scared to death to even consider buying a home. They hear stories that someone’s mortgage payment went from $1,000 to $1,800 almost overnight. They are afraid of the fine print and don’t know who they can trust. 

A study conducted by the University of North Carolina School of Social Work determined that loans with low monthly payments result in borrowers who stay current. They also participate in their communities and vote.

The problem is subprime loans, says Roberto G. Ouercia, director of the Center for Community Self-Help, a nonprofit that partners with Fannie Mae and the Ford Foundation to lend mortgage money to low-income borrowers. The study found that borrowers with subprime loans are four times more likely to fall behind. 

Subprime loans are loans to borrowers with questionable credit, usually 680 credit score or lower, and at higher interest rates. 

Dallas first time home buyers have other, less scary, mortgage options: 

The Texas First Time Homebuyer Program provides below market interest rate mortgage loans eligible families and individuals who are purchasing their first home or who have not owned a home in the past three years. 

There are currently two types of loans are available under this program. An “Unassisted Rate” loan offers our lowest interest rate available and does not provide funds for down payment and closing cost assistance. For borrowers needing assistance with their down payment, an “Assisted Rate” loan is offered to income-eligible borrowers that provides grant funds up to 5% of the mortgage amount. These loans are offered at a slightly higher interest rate. 

The Mortgage Credit Certificate (MCC) Program increases a family’s disposable income by reducing its federal income tax obligation. The tax credit is valid for the life of the loan as long as the borrower occupies the property as their primary residence. 

If you are a Dallas first time home buyer and need more information on sound, reliable financing options, visit TexasHomeCentral.com. You can also give me a call for more personal assistance. 

Search all Dallas homes for sale.

In response to the Federal Reserve’s cut in the federal funds rate to near zero, Freddie Mac reports that the 30-year fixed mortgage rate fell to 5.14 percent during the week ending Dec. 24–the lowest since the survey’s inception in 1971. Interest on 15-year fixed loans fell to 4.91.

What does this mean for Dallas home buyers? 2009 will be a great year to buy a home. With foreclosures continuing to rise in Texas, prices will continue to fall.

Home values are currently at 2003-2004 levels, coming down significantly from their high point of a few years ago. If you-or friends and family members you know-are contemplating seeking financing for a new home, now is the time to act.

With a first time home buyer tax credit of up to $7,500 and low or no money down programs available for many people today, now is a great time to buy a home.

Search all Dallas homes for sale.

There’s been a lot in the news recently about the government takeover of government-sponsored enterprises Fannie Mae and Freddie Mac. But what does that mean for the Dallas real estate market?

These agencies guarantee more than 40 percent of the nation’s mortgages and own or guarantee more than $5 trillion worth of mortgages, so assuring their continued operation is crucial in the current economic environment. 

The government’s actions aimed to restore confidence and bring stability and continued liquidity to the nation’s mortgage market. Interest rates came down immediately after the takeover, and it’s likely that this will keep them low for some time to come. 

Buyers benefit from lower rates, and sellers benefit from the increased demand created by buyers entering the market.

Learn more about Dallas real estate by visiting TexasHomeCentral.com or giving us a call, 972-562-0896.

Search all Dallas real estate and homes for sale.

President Bush signed into law this week The Housing and Economic Recovery Act. This is the most sweeping change to housing reform since the New Deal of 1934. It is designed to assist more Americans invest in home ownership and shore up the faltering housing and mortgage markets. Like any legislation, it comes with the good and the bad. I encourage you to write your Congressmen to see if we can get legislation to revoke some of the bad. For example, effective October 1, 2008, FHA will increase the minimum required down payment from 3% to 3.5% for Dallas home buyers. The legislation also calls for the elimination of seller down-payment assistance programs such as AmeriDream and Nehemiah by October 1, 2008.

As of July 14, 2008, upfront MIP premiums became risk-based on credit scores and the annual premium increased across the board. Instead of the original plan of making FHA loans more affordable for potential Dallas home buyers; the new legislation is doing the exact opposite and makes it more expensive.

Details of the Housing and Economic Recovery Act:
Here are some key provisions of the Housing and Economic Recovery Act that most affect Dallas home buyers:
(more…)