Short Sales Should be named Long Sales

If you have traveled down the path of trying to buy a short sale process you know it can be a lengthy and frustrating endeavor.  Although there can be price benefits to purchasing a short sale property, it may or may not be worth the hassle.  A short sale is a property being sold for less than the current mortgage balances.  There may be more than 1 lender involved since many homeowners took advantage of (2nd) home equity lines of credit etc.  The lenders involved are being “shorted” the payoff due on the property.  Any offer is subject to 3rd party approval (the lenders being the 3rd party).  Depending on the lender and how backed up they are it could be weeks to months before they even respond to a offer.  This leaves the buyer in limbo for an undetermined amount of time.  Interestingly, many properties I have seen that were offered as short sales and were never sold and eventually foreclosed on, end up back on the market priced considerably less as foreclosures than they were as short sales.  A wise buyer might wait if there is plenty of like kind inventory.

Assume a Mortgage? It’s back!

While not used very often in the last few years, I think we will start seeing more mortgages being assumed since FHA loans are making a comeback.  Any FHA mortgage can be assumed, the new buyer just has to qualify for the existing financing.  This may save the new buyer some up front mortgage fees and if the rate it good, it could work out well for everyone!

Down Payment Assistance

Some of you may know that the Portland Development Commission (PDC) offers down payment assistance for purchases in their designated Urban Renewal Areas.  If you have been looking to buy a home in the Lents or Interstate Corridor areas, their budget had run dry; but never fear, come June 15th more funds will be available.  These funds can be accessed by qualifying under their income guidelines as a low interest loan along with your primary loan.  This is an excellent way to get into a home without paying private mortgage interest, and giving you extra cash to put into your new investment. 

Click on the links for more info:

Loan Program:

http://www.pdc.us/housing_services/programs/financial/down_payment_assistance_loan.asp

Urban Renewal Area Maps:

http://www.pdc.us/housing_services/resources/publications/inv_detail.asp?id=796&ty=48

Contact us if you want more information about how you can buy a home with no down payment.

LP Quality or Quantity?

Those of you who have been around a while have heard of the issues surrounding LP siding manufactured between 1985-1992.  Homes that had that LP siding installed around that time have been shown to have siding failures.  Spitting, swelling, rot and mold have occurred in many instances.  For a time LP offered reimbursement for the costs of the siding to replace failed systems, that money has since run out and anyone who didn’t submit a claim in the beginning is just out of luck. 

Well, history does have a way of repeating itself.  LP’s newest failed product is Veranda Decking and Railings.  Another composite material used to build decks and masquerading as real wood this product manufactured after January 2005 is subject to another claim process.  Premature splitting, cracking etc. has caused this material to be a safety hazard since most people have the habit of standing on or leaning on their outdoor decks and railings.  Think you might have this product?  Check out the info on their link: http://www.deckingnotice.com/  File your claim early, you won’t want to miss out on the money this time around!

HUD Home Bargains

As a certified HUD Broker, I can sell HUD owned foreclosures.  If you are not familiar with these properties you might be in for a big surprise, especially if you are in the market to buy.  While they can sometimes need a little work, they can be a bargain.  HUD comes into ownership because they foreclosed on an FHA backed loan.  Not wanting to be landlords, they clean them up and put them back on the market at an attractive price.  Generally, most homes are posted for sale first to owner occupants, and if they don’t sell in the first week or so, they are opened up to investors.  That’s their way of promoting home ownership.  The great thing about buying from them is there are few surprises and they are not emotionally attached to these homes.  It is strictly about the numbers for them.  Once you submit a bid you know if you got it the day after the deadline or within 24 hours on business days-no fooling around.  Some homes even offer FHA financing with only $100 down!  How can you beat that?  Let me know if you want more information on these opportunities!

View available properties at http://www.hmbiweb.com/listings.html

GIVE A LITTLE-TAKE A LITTLE

Every new homeowner needs to put their stamp on their home.  That is part of the fun of remodeling, making it your home!  Although the task may be daunting, depending on how many years have gone by since the last remodel-never fear.  Don’t love the 70’s swag lamp in your living room, or the pink toilet in your (only) bathroom?  Even these gems can find a home at the Rebuilding  Center.  Located on N Mississippi just north of Fremont, this warehouse of used home parts (treasures!) is the place for you.  You might be amazed at who might be looking for that dated item you just took out of your new home.  Plus it’s a well organized marketplace of replacement parts for those hard to find items.  Replace doors, hardware, faucets, etc.  Good for the environment, prices are reasonable and tax deductible donations are also good for your pocket book too! 

Check out their website link on my blogroll.

$8000 TAX CREDIT FOR FIRST TIME HOME BUYERS!

If it isn’t enough that the interest rates are below 5%, first time home buyers can take advantage of a $8000 tax credit in 2009.  Makes me wish I were a first time home buyer again… A step up from last year’s $7500 tax credit (loan) that had to be repaid.  It’s practically like the government is paying you to buy a home!  And don’t think you can wait until the last minute to take advantage.  My guess is if you wait past September or October there will be a waiting line to take advantage of this program-slowing down loan processing and your closing date.