Why Remodeling Your Home Is Worth It

If you are considering selling your home at any point in time, please read through this post because it will be very beneficial to you. Two years in a row now, the cost compared to retained value of remodeling your home has gone up. What does this mean? Basically, it is becoming increasingly profitable to remodel your home in one way or another. Every 20 years or so there is a need for remodeling due to obvious reasons; trends change and styles go out of style. Now is that time! New buyers are putting stress on new types of features. As a real estate agent out in the trenches seeing multiple homes every day, I can testify to the fact that most homes out there need some type of remodeling. The homes that sell quickly and for the highest prices are the ones that have been recently remodeled and updated.

What do I mean by remodeling? Remodeling includes projects such as the following:

- Remodeling the attic for an extra bedroom (Average project cost: $49,438; cost-to-value ratio 84.3%, an increase of 15.6% compared to 2013.)

-Remodeling (finishing) your basement (Average project cost: $62,834; cost-to-value ratio 77.6%, an increase of 10.4% compared to 2013.)

Although these are very beneficial remodeling projects, you may not be willing to spend those amounts at this point in time. If you are considering selling your home very soon, you may want to look more into replacement projects with the best return on investment. Some of the best replacement projects you can do are replacing the windows, siding, roofing, and the garage door(s). However, the most important and cost efficient replacement project:

- Entry door replacement (steel) - this replacement will return approximately 96.6% of the cost into your pocket. There is a low initial cost to replace the entry door and it adds a tremendous amount of curb appeal (Also, the entry door is the first thing the buyer will notice before walking inside and the first impression is CRUCIAL.)

One more aspect to consider which will add a lot of value to your home, as well as having the largest increase in percentage of cost-to-value ratio: back-up generator. These past years have been a flurry of storms, whether it be rain, snow, wind, etc. power outages have been way to frequent for people's liking. A back-up generator, more than anything else, adds security and comfort to a home. It would be well worth the effort to have one installed on your home.

[chart and statistics research found on http://www.remodeling.hw.net/cost-vs-value/2014/trends]

New Hoboken Luxury Development "The Artisan" Sells For Big Bucks

     Hoboken, one of the most exciting and visited nightlife spots in New Jersey, is drawing in more and more upscale renters constantly. Proximity to New York, popular bars and restaurants, city like atmosphere, and a great view of NYC just over the Hudson are all reasons why people want to live in Hoboken. Due to the high rent demand in Hoboken, the need for new upscale development was overdue. That need was realized by Argo Real Estate along with the help of Alpine Development when they teamed up in 2012. 

    

 The result was The Artisan; a 102,000 square-foot mixed use development that was financed by a $16 million loan. What exactly is The Artisan? Located at 1400 Clinton St & 1440 Grand St, The Artisan includes two separate four story apartment towers, joined by a two story base which houses retail space. Amenities of The Artisan include a lounge, fitness center, private courtyard, private parking, and a business bar for all to enjoy. The apartment began their availability in October 2013 and just five months later, the place was fully booked. 

     Five months! That is pretty crazy, however it portrays the true demand for upscale luxury rental living in Hoboken. In that five months, 59 total units were filled with 1 Bedrooms going for $2,500/month, 2 Bedrooms $3,300/month, and 4 Bedrooms $4,700/month. These prices near the lofty monthly rates of NYC itself, and they were snatched up in no time. 

This project was a huge success, once the news broke of the building being rented to full capacity, a Chicago real estate investment firm opened up the checkbook and bought it. 

     

     How much is this development worth? LeSalle Investment Management spent a hefty $33.5 Million to purchase The Artisan. LeSalle, a company that oversees $47.6 billion of public and private property equity and debt investments, is a leading global real estate investments manager. This is more proof, not that any was needed, that Hoboken is thriving and most likely will continue to develop towards the upscale lifestyle.

Condos Take The Spotlight In Housing Recovery

     Even with the housing Recovery in consideration, over the last few years the condo sector has been far from impressive in both growth in sales as well as growth in development. The blame for this, however, is not to be put solely on the housing crash, but the lack of physical buyers that would be interested in this particular form of housing. Condos are most popular among two groups; people looking to downsize and live in a low-maintenance community (Currently this group is the Baby Boomers), and young professionals who are just entering the housing market. 

     Although almost everyone was affected by the economic collapse, these groups of young professionals and Baby Boomers are most relevant in regards to condo growth and development. Over the past few years, following the housing crash, many young professionals were held back financially, whether that meant trouble finding a job, trouble gaining job security, loss in investments, etc. On the same note the Baby Boomers, who were expecting to retire, also had their future affected by job security, loss of investments, etc. Recently, we are seeing indications that these issues are steadily diminishing.

     Condo sales are moving up quickly, especially within the last year, due to the increased demand by none other than....That's right, you guessed it...the Baby Boomers & Young Professionals. According to preliminary data issued by the National Association of REALTORS®, condo and co-op sales in July 2013 were up 23% from July 2012. Although some regions posted larger gains than others, there was at least a 20% gain recorded in every region year over year. In the nation, the average price for condos and co-ops was $209,600 in July, which marks an approximate 15-16% increase year over year. 

    As with anything, when sales & value go up it sparks demand for an increase in production. The National Association of Home Builders refers to an index that measures builder confidence for the sector and the recent reports show a boom in builder optimism during the second quarter of 2013. The focus for builders seems to be high-rise condo complexes. The growing interest in high-rise construction goes hand-in-hand with a slowly recovering housing market for new residential home construction. 

Celebrity Estates! The Tiger Woods Mansion

     The infamous Tiger Woods, one of the most accomplished athletes in sports history. Tiger is not only an accomplished athlete; from sports drinks to clothing lines this man has created an empire. Even after his fairly recent issues that relieved him of many endorsement deals, and the divorce that sent ridiculous amounts of money to his former wife, Tiger's wealth remains intact and will continue to build towards the future.

   
     Tiger's mansion stands among the best out there. At an astonishing $60 Million price tag, this modern estate is perfectly designed for the golf enthusiast; mainly due to the fact that Tiger himself, along with the Tiger Woods Design team, helped to develop the property. Tiger's goal: to replicate the look of a real professional golf course right in his own backyard. The result: Incredible success! The plans began with the land itself, a flat 3.5 acre area that transformed into a family friendly practice facility with tournament conditioned turf and bunkering to replicate various major courses. The rest of the landscaping features a tennis court, gym, diving pool, lap lane, running track, and of course a small golf course for Tiger to practice on.
     The inside of the home is just as intricate as the outside. There are four different buildings that are joined to the main home area, which include a boathouse, golf training studio, a garage, and an oversized guest house. The basement of the home includes amenities such as a cinema, large wine cellar, and of course a game area with all the newest and best toys for Tiger's children. As Tiger is a man of privacy, the entire estate is surrounded by large trees and shrubbery for solidarity and safety.

Top Factors To Consider Before You Buy A Home

   
     Whether you are a first-time home buyer entering the market or a seasoned homeowner jumping into the market yet again, there are a few factors that NEED to be considered before you put your signature down.

Financial Status

     First and foremost you need to be fully aware of your financial status, because knowing your financial boundaries is key. If you need a mortgage then it is best to contact a mortgage representative as soon as your ready to begin your home search. The mortgage representative will go over your finances and come up with a price range that you will be able to afford. If you do not need a mortgage or would like to begin figuring what your financial status is on your own, then here is a list of considerations for determining your affordability; Cash available for downpayment, your monthly income, your current debt, and your monthly expenses. Also, your credit score is a key role in your ability to obtain a mortgage as well as a determining factor in what your mortgage rate will be. Better credit means lower rates, so if you have any issues on your credit history be sure to resolve them before you apply for a loan.

Real Estate Agent
     Not everyone will utilize a real estate agent, however I would highly recommend it. From negotiating to utilizing the best vendors, real estate agents can help for a smoother process with less stress and a more beneficial outcome for you. Also, as a buyer you will not be covering any of the commission costs towards the agent because the seller is responsible for that. There are countless reasons to use an agent BUT you need to be very carful to pick the right agent for the job. There are bad apples in every bunch so you need to do your research; search online, ask family and friends for recommendations, and do not be hesitant to interview a few different agents before you make your choice. The agent will be working with you throughout the entire home buying process, so make sure you choose an agent that you can get along with. Also, make sure the agent you choose is familiar with and knowledgeable in the area you are searching.

Location
     Once you have chosen the town or city you will be moving into, the next step is figuring out what part of that town or city is most suitable for you. Make some time to drive through different neighborhoods during all different times of the day and week in order to get a feel for all the areas. Keep an eye out for factors such as traffic patterns, noise levels, and social behaviors. If you happen to see some of the locals outside do not be afraid to stop by and ask their opinion on the area as they would know best.

Utility Costs
     Utilities can really add up for a home and you need to know every expense that you will be incurring to make sure you do not get stuck in an unfavorable situation. Question the seller not only on the amount of yearly expenses but on their frequency of use as well. Not every person lives the same way; the current seller could say that the utilities are low, but the reason for that could be that the seller does not make much use of the utilities. If low utility costs are a main focus of yours then you may want to search for homes with updated, high efficiency appliances.

Resale Value
     The resale value of the home is typically something that is overseen by the buyer, however it is definitly one of the most important aspects of a home purchase. A home is typically the largest purchase you will ever make, therefore you need to make sure you are making a sound investment. Do as much research as you can to develop an estimated future value.

Escalation Clause: A Buyer Tool That May Be Valuable In Today's Housing Market

     As I mentioned in my previous post "Looking For A Home? What To Know & What To Expect" I explained the state of the housing market right now and what you should be expecting as a buyer looking to purchase a new home. Today's housing market is faced paced and if you hesitate at all you may lose the home you are hoping to close on. The "Escalation Clause" may be a useful tool in this type of market, but be careful when utilizing it because it may add more complication then necessary.
     What is an escalation clause? Well, it is quite a simple concept actually and may be the difference between obtaining or losing your dream home when you are in competition with another offer. An escalation clause (Also referred to as "escalator" clause) allows the buyer to submit an initial offer price (x), and if the seller receives an offer higher than that price, the buyer is willing to raise their offer to (y). The three main factors of an escalation clause include the original offer price, the amount that price will be escalated above another competitive offer, and the maximum amount the offer price can reach. 
     Here is an example of what an actual escalation clause would look like: Mr. Buyer submits an offer on a home for $400,000. Mr. Buyer's real estate agent adds an escalation clause that, in the case of a higher competing offer, will raise Mr. Buyer's offer in increments of $1,000 above the competing offer. Mr. Buyer's escalation clause has been set to only be able to reach a maximum of $415,000. So, if a competing offer comes in at $405,000, Mr. Buyer's offer will automatically go to $406,000 due to the escalation clause. If a third offer comes in at $410,000, then Mr. Buyer's offer will increase to $411,000. The amount will not be allowed to exceed $415,000, therefore if one of the two competing offers is raised to $416,000, Mr. Buyer will no longer be in contention for the home. Also, if no competing offers are submitted on the home, Mr. Buyer's original offer at $400,000 will stand.
     Although the concept is simple, using it in a real life situation may be more difficult than you think. Not all sellers will be comfortable with an escalation clause contract because it diminishes the possibility of a true bidding war. It also can be a risky move for the buyer because you are literally putting all your cards on the table and showing your hand. If a buyer is to offer a contract with an escalation clause and no other competing offers come in, the seller's agent will know exactly what the buyer is able and willing to spend on the home and the buyer loses all negotiation power. Therefore, the buyer NEEDS to be very confident that multiple offers will arise on the property in question.
     Every single situation is unique, please consult your real estate agent before deciding to use an escalation clause.

Looking For A Home? What To Know & What To Expect

     Today's Real Estate market is very complicated IF you are unaware of what is going on, so I will give a little breakdown of what I have personally been seeing out there in the market as well as the research I have been doing day by day. 

WHAT TO KNOW

     Right now it is a Seller's market, which means that the seller's have the upper hand when it comes to negotiating and closing on a price. Why do the sellers have the advantage? Think of a simple supply/demand model in which the buyers are the demand and sellers are the supply. If there were the same amount of buyers and sellers then the market would be in equilibrium, but currently there is a lot more demand (buyers) than supply (sellers), therefore the sellers hold the advantage. 

     There are a few reasons for the higher demand, one of which is the mortgage rates. Recently the mortgage rates have been extremely low, especially when compared to the historical averages. Mortgage rates bottomed out a few months ago at just under 3.5%, currently the rate sitz around 4.5% but is expected to hit the 5% mark when we enter into the new year 2014. Another reason for the higher demand is the rising home prices. Buyers would obviously purchase a home at a lower value if they could. Home prices have been increasing consistently month over month for the past year which, in combination with the mortgage rate situation, is causing the urgency to buy a home now. 

     On the other side of the coin, the low supply in the market today is being caused by sellers and banks together. There are a lot of people who would like to list their home for sale right now but the biggest issue seems to be gaining back lost equity from the housing crash. Many homeowners are thinking that they will wait until they gain all their money back before they sell. Although we can all understand this thinking, it is not necessarily the best option. Why not sell your current home and gain equity in a new home? As I mentioned earlier, home prices are rising, so if you were to move into a new home now, you could look at it as an investment and watch your new home increase in value. 

     The other cause is the banks. During the housing market crash, many homeowners sunk underwater on their mortgages and were forced into foreclosure. Well, now that all those homes have been foreclosed upon, the banks are simply holding all of their inventory for the same reason mentioned above, waiting on the home prices to come back up. How can the banks afford to hold on to all these homes? They can because our administration decided to bail out the banks right after the crash and give them a ton of money. When this was done, the banks were given the monetary leniency to hold their inventory. Expect a change in the bank situation soon though. Banks have been holding on to these homes for a while watching the home prices rise, but it is not cheap to do so. As we all know, homes cost money to keep in working condition and the banks can only hold on for so long before they start losing money. Therefore, expect to see more bank owned properties entering the market and helping to fill up the low inventory. 

WHAT TO EXPECT

     Now that you have an idea of why things are the way they are with the market, you need to know what to expect when you go to purchase your next home. Due to the large amount of buyers and shortage of inventory, there will most likely be more than one person interested in the home you are interested in. I have been seeing many multiple offer situations as well as sellers receiving offers ABOVE asking price. Bidding wars are very common right now so be prepared to go up against other offers. If you are very interested in a specific home DO NOT low ball the offer or ask for the extra ordinary; you will most likely lose out on the home. When searching for a home, KNOW YOUR PRICE RANGE! Do not look at homes 10k, 20k, 30k above your price range and expect to get a deal because you will only be wasting your time. Understand that the final negotiated price will not be to far from the listing price. Also, to make sure a home's listing price is relevant to the fair market value, MAKE SURE your agent does a good job pulling comparable sales to double check what the market is indicating the home is worth. Also, do not stop looking for homes once you have decided to make an offer. In a market as tight as this one with a limited amount of inventory you do not want to lose out on any valuable time. So, what I have been instructing my clients to do is this; once we submit an offer we do not stop searching for more possibilities, we will have a list of more homes together and ready to view as soon as possible. That way, if our offer does not go through, or we lose out to another offer, we will already be set-up with appointments so we do not lose out on the other available homes.

Real Estate Fraud Scammed Miami Heat Players

     A multi-million dollar real estate scam that has affected numerous residents of Florida, has reportedly conned a few Miami Heat players as well . Haider Zafar, the alleged criminal behind the fraud, is a Pakistan native and legal U.S. resident who previously lived in Ohio, but now resides in southern Florida. The main accuser, Patwinder Sidhu, is a businessman out of Washington, D.C. who was scammed out of $10 million between the years 2008 & 2010. No Miami Heat players were mentioned in the criminal complaint; however, Andrew Fine, an International Investment Attorney who testified in court said that some Heat players and other Florida residents invested $8 million with Zafar. Apparently only one Heat player was mentioned in court and that was Mike Miller. The other two names, Rashard Lewis & James Jones, were given up by a person with knowledge of the case, however that person requested to remain anonymous due to the fact that it is an ongoing investigation.
     Zafar is accused of telling Sidhu that his Uncle was the defense minister of Pakistan and had the responsibility of buying property for Pakistan's government. It continues by stating that Zafar told Sidhu he could buy land in Pakistan and later sell it to the government for a profit. Zafar has pleaded not guilty to all charges of his 135 count indictment but was denied bond by U.S. District Judge Edmund A. Sargus because he was determined to be a flight risk and danger to the community. "The longer the potential sentence, the greater the risk of flight," the judge said, according to The Columbus Dispatch.

Job Market Holding Back Housing Market

The housing market is boosting the job market however, the job market is not reciprocating. The rising home sales has successfully boosted the residential construction employment rate by 4.5% from last years figure. Compared to the national employment growth rate of 1.7%, the residential construction employment rate is significantly higher. Jed Kolko, chief economist at Trulia, has states that the unemployment rate is holding back demand for housing. Kolko specifically focused on the 25-34 year-olds, stating that only 75% of that population group is employed because of the continuously weak job market. 

“Job growth remains sluggish for young adults — who are key for household formation — and job growth is lagging in the “clobbered metros” hit hardest in the housing bust. That means the job market isn’t improving enough to give a strong boost to housing demand.”

The group stated above (25-34 year-olds) is crucial for the housing recovery because they are the first-time home buyers who need to be entering the market right now with the purchase of a home. However, it continues to be a struggle for this age group to gain any real momentum in their job security and acquire any potential to save money towards the future. Is it the government regulations and complicated tax structure that is holding them back? Is it the fact that we are still recovering from an economic collapse? Or, is it simply that the NEW generation of working class in this country is focused more on spending and partying, rather than woking and saving? Whatever the reason may be, something needs to change and we need to find a way to boost the job market and create more opportunities for job growth so people can earn the money they need, rather than figuring out more ways to hand out more free money. 

"EMPOWERHOUSE" The Future Of Living

   
The term "energy efficient home" just acquired an entirely new concept, and that is the "Empowerhouse". Engineered and developed by students at Stevens Institute of Technology, Parsons The New School for Design, and Milano School for International Affairs; the Empowerhouse won the Department of Energy's Solar Decathlon competition for its cost effectiveness. The Empowerhouse, located just outside of Washington D.C., has basically NO carbon footprint by using approximately 90% less energy for heating and cooling.

     The home is a 1,000 sqft duplex with 12 inch think walls and triple glazed windows. For proof of the homes efficiency it was given the passive house certification test and passed. To test the home a giant blower fan was positioned in one of the doors while all the other doors and windows were closed. The fan slowly sucked out all of the air until the house was pressurized at 50 pascals and then the amount of air that creeped its way back in was measured. The results on a typical home will have a reading of 7 air changes per hour which basically means that in one hour, all the air in the home is replaced 7 times. To pass the passive house certification test means you have recorded a reading of 0.6 air changes per hour. 

“That means that all the little leaks put together are smaller than a postage stamp,” said Orlando Velez (Manager of the Housing Services for Habitat for Humanity of Washington D.C.) “And if you wanted to, you could heat your home with a hair dryer quite easily.”

     Now to answer the questions that I am sure most people are wondering, what is the price tag on this housing innovation and how much will you actually save in energy costs? Well, the cost is approximately $200,000 for each half of the duplex and the estimated energy savings is almost $72,000 over the length of a resident's 30-year mortgage. A lot can be done with that amount of money freed up for your future. 

“I just remember thinking, we did it, a non-profit, affordable house developer can do this, even using volunteers with no construction experience,” said Velez. “And then I started thinking, what’s everyone else waiting for?”

Energy Efficient Home Could Lead To Bigger Mortgage

One of the biggest considerations when it comes to mostly anything now-a-days is the environment. Energy efficiency is becoming more and more relevant and it is now encroaching on the mortgage industry. Energy efficient homes are homes that have additions such as solar panels or high efficiency appliances in order to save energy costs for the home. A new bipartisan bill in the Senate is proposing that home buyers who purchase energy efficient homes should qualify for a higher amount with their mortgage. This new act, which is labeled the SAVE ACT, would allow lenders to factor in energy savings to the value of a home.

"It's about energy efficiency, it's about savings, it's about increasing the borrowing power for the borrower. I think it's a win-win for the industry," said Sen. Johnny Isakson, R-Ga., a co-sponsor of the bill.

If approved, any lender with loans backed by Fannie Mae, Freddie Mac, and the Federal Housing Administration (which accounts for approximately 90% of the market) would account for expected energy cost savings. Another aspect the bill would affect is appraisals. The bill would require lenders to add the value of expected energy savings into the value of the home being appraised.

Change Of Address Scams

      When someone goes through the exciting process of buying a new home, one of the final steps to completing the move is to officially change your address. Now, after going through such an extensive home buying process, many people will quickly try and get the change of address done by going to the internet and searching what they should be doing. BE CAREFUL! There are scamming companies out there right now who will charge you anywhere around $17-$24 to process this request. Your local United States Post Office will process this request for $1, and if you have the time to stop by the post office they will process your change of address for no charge.

"Some people report they are charged a dollar at first [on these other sites], but then a short time later, there's another charge for additional services they did not knowingly purchase," says Miranda Perry with Scambook.com

There seems to be one site in particular that is drawing a lot of attention for this scam. There have been approximately 150 customer complaints filed with the Better Business Bureau about: Change-My-Address.com. This site advertises, “USPS(R) Change of Address Form. Fast & Secure Mail Forwarding.” Although a spokesperson for this company has come out and said that they state in several places on the website they are not affiliated with USPS, why go through all this hassle. Please save yourself any trouble and simply visit the USPS Website (CLICK HERE FOR THE OFFICIAL USPS "CHANGE OF ADDRESS" REQUEST FORM). Once you go there you can submit your request for $1 or to save any cost at all just visit your United States Post Office and fill out the change of address request free of charge.

ARMs Coming Back Into The Picture

   With the recent upswing in the mortgage rates, the option of an ARM is starting to be explored a lot more with current borrowers. The mortgage rates recently spiked, going from 3.5% in April to over 4.5% as of now in late July which is having a significant impact on peoples' buying power. I know that a few of my clients just recently had to lower their price range by 10 to 20 thousand in order to adjust to the rates. At the same time the 30-year fixed rates are experiencing this small surge, ARMs have been keeping fairly steady, fluctuating between 2.7% and 3.1%. Yes, those rates look very appealing right now; but at what cost? For those of you who do not know what an ARM is, I will explain. ARM stands for "adjustable rate mortgage" which means exactly what is says; the rate is not locked in for the length of the mortgage and periodically adjusts according to an index that reflects the cost of the lender to borrowing on the credit markets. This closer focus by borrowers on ARMs is starting to get some people nervous, but why?
     Well, ARMs are often accused of having a hand in causing the housing bubble. Their low rates and low initial payments are very appealing, HOWEVER that is not the whole picture. You are assuming a hefty risk when entering into an ARM and you need to be prepared for the future. Prior to the housing bubble many home buyers went with an ARM and once the higher reset payments went into effect many were forced to default on their loan. In recent years, fixed rate mortgages have reached record lows, staying steady at 3-3.5%. With rates like that in fixed rate mortgages, it didn't make sense to take on the risk of an ARM, but now with the recent spike, ARMs are back in the spotlight. Earlier this month, the share of ARM activity jumped to its highest level in 5 years (since July 2008, according to the mortgage bankers association.)
     ARMs are based off short term interest rates which are still seeing numbers near record lows. Although, economists are expecting to see an increase in these short term rates fairly soon. Borrowers choosing an ARM will be able to purchase a more expensive home then if they were to go with a fixed rate mortgage, but at what cost? If the monthly payments rise to much because of the variable interest rates, it would be like digging yourself into a hole that you eventually cannot climb out of. The purpose of me writing this is not to scare you away from ARMs as it may be the right choice for you. Just keep yourself informed and make sure you consult with a mortgage expert before jumping into something you may not completely understand.

C21 Adds New Search Option For Buyers' Convenience

     Not surprisingly, one of the most important factors for buyers is the quality of the school system they will be entering their children into. As a real estate agent I know first hand that one of the most popular questions from buyers with children is, "How is the school system" or "Which area has the best schools?" Seeing the significance this factor holds to a large amount of the buyer audience, Century 21 has just added a "Search by Schools" option on their website (century21.com). This option offers buyers a much more convenient method to search for a home location within specific school boundaries. 

“Selecting the right school is an important part of the decision to buy a home,” says Bev Thorne, Century 21 Real Estate LLC chief marketing officer. “We have now made the search easier by delivering data to consumers precisely as they want it.”

     Once buyers are on Century 21's website, they have the options of searching schools by location in a specific state, county, city, or even near a street address. The search options for the buyer go very in depth, including options such as student-teacher ratios, grade levels, public/private, or charter school types. Once the buyer has set all their search criteria, they can simply set a new listing alert and as soon as a new home pops up in their search area they will be notified. If you are a relocation buyer or simply do not know enough about the school systems to make a decision, Century 21 also provides a list of all the top rated schools right there so you do not have to wander the web for information you cannot always trust. 

Responding To Foreclosure Summons

Hey Everyone,
     I would like to welcome a guest poster Stephen K. Hachey, a real estate lawyer located in Florida. I am always looking to keep my readers informed on every aspect in real estate and I felt that Stephen's professionalism and knowledge on pertinent real estate law topics would be very beneficial to my blog, enjoy the read everyone!

     In 2012, nearly 2 million homes in the US were foreclosed on. Although this number has gone down compared to previous years, homeowners are still finding themselves being served with foreclosure summons.
If you’ve defaulted on your mortgage long enough, your mortgagor (or bank), will begin the law suit that the bank will file against you. This takes place roughly after 3 to 6 months of payments have been missed.
     Each state has different foreclosure measures but all fall within two categories: Non-judicial foreclosure and judicial foreclosure. Non-judicial foreclosure does not require a court proceeding and takes less time than a judicial foreclosure, which involves a judgment for money owed by the borrower and in most cases, leads to the auction of the home.
Even though you may have defaulted on your mortgage, being served with a Notice of Intent does not necessarily mean you will lose your home. You can negotiate with the bank and work on a Short Sale, apply to modify your mortgage, or simply pay the loan up to its current dues.
In the event that alternative action cannot be taken, you have between 15 and 30 days, depending on your state, to file an answer with the court. The lender will make allegations in association with your default. The best way to delay the foreclosure process is to answer all allegations thoroughly. Statements that you accept will allow the lender no further action against that evidence. However, if you deny statements that are brought up in the summons, you must provide supportive information as to why you are denying them. This will force the lender to provide additional information against you, which in turn will give you more time before the auction of your property.
You may be able to fight the foreclosure in court. A commonly used defense is that the bank participated in unlawful practices in association with your mortgage payments. If you decide to contest the allegations that the bank brings to the attention of the court, you will delay the foreclosure. However, court costs and possible attorney costs will need to be paid and it does not guarantee that you will halt the foreclosure.
     The Notice of Intent to Sell is the final attempt for the lender to collect the mortgage balance before the property is sold at auction. At this point, a judgment has already been made in favor of the lender. Failure to respond to the Notice of Intent to Sell will allow the property to go to auction.
The home is sold for the minimum price at auction. If the house does not sell, the bank becomes the owner by default. Then, the lender can take possession of the property and evict the resident. The entire process can take anywhere from 8 months to a year.
     
     This post was written for Stay Real Estate by Stephen K Hachey. Stephen is a Florida real estate lawyer at http://floridarealestatelawyer.org/ specializing in loan modifications, short sales, foreclosure and much more. He is also the owner of his own practice, the Law Offices of Stephen Hachey, PA. This article is for general informational purposes only and does not establish an attorney-client relationship. Please contact a licensed attorney in your state of residence. For more information on our services, please visit our website at www.floridarealestatelawyer.org/.

Check Out My Website!

Hey everyone!
Please check out my website, I added a link to it at the top of my blog page. It is in the title bar labeled "MY WEBSITE". It is packed with a ton of features as well as local market information, current available listings, another way to contact me!, links to all my social sites, and much much more!

Thanks for all the support

AVAILABLE NOW!! STUNNING COLONIAL!! Bridgewater Twp, NJ

$749,000
3 Yohn Dr, Bridgewater Twp
MLS#: 2980046 <-- CLICK HERE FOR MORE INFO!! 
Status: Active
Style: Colonial
Rooms: 9
Bedrooms: 4
Full Baths: 2
Half Baths: 1


Remarks: Beautiful, Stunning, like-new,solid well bulit brick face Colonial home on a very private cul-de-sac neighborhood. A Bright & spacious Open floor plan and a Grand two story Foyer entrance 


IF YOU ARE INTERESTED PLEASE CONTACT ME!!

Mortgage Rates Begin Their Rise!!

     I have been following the mortgage rates throughout the past year and making periodic posts here on my blog in order to inform you of the incredible opportunity to obtain a mortgage at such a low rate. I also have been mentioning that these rates, although magnificent, will not remain this low forever. The mortgage rates have been hovering around 3.5% for quite some time and I had estimated an increase to 4% by the end of the year based on the reports I had been reading. However, it seems the mortgage rates began the up-swing earlier than I expected, moving much closer to 4% and also obtaining the highest levels in a years time; according to Freddie Mac's weekly mortgage market survey. The 30-year fixed rate mortgage, which is the most popular choice among home buyers, has jumped nearly half a percentage point since the beginning of this month. The mortgage rates went from 3.35 percent to 3.81 percent just this week.

"Fixed mortgage rates followed long-term government bond yields higher, following a growing market sentiment that the Federal Reserve may lessen its accommodative policy stance,” says Frank Nothaft, Freddie Mac’s chief economist. “Improving economic data may have encouraged those views.”

MY ADVICE!!!

     Although the mortgage rates are on the up-swing, we NEED to remember that, historically, the mortgages rates are still tremendously low. Personally, I have not experienced a market with very HIGH mortgages rates, therefore I will throw in some advice from my Broker who has been in Real Estate for almost 30 years, "anything under 7% is a very good position to be in." Therefore, we are still in a good position to obtain a mortgage, if anything this is just a sign that you NEED to make a move now in order to lock in a great rate for your future. The rates could take another dip down to 3.5 or they could jump to 4.5 but you cannot base your future on an assumption. If this is the time to buy for you then, as they say, strike while the irons hot!

Best of luck with your home searches and if I can be of assistance (which I know I could be) then please do not hesitate to contact me. I am available to answer any questions you may have.