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Before buying a foreclosure you need to know what to look for. Do not just assume that because a house is a foreclosure that you are getting the home at a bargain. You will need to do just as much due diligence with your research as you would when you are buying any other property. There are also some unique issues and risks that need to be considered when purchasing foreclosures. Below are some tips on what to look for to ensure you are making a sound investment in a foreclosure: Some foreclosures accept bids and some are on the condition of sight unseen. Others you can go to the property but can not see the interior. In such cases you are gambling on the condition of the house. This can be a very risky move. If you are able to inspect the house before making an offer, do so thoroughly. Some homeowners, when faced with foreclosure, sell off appliances or cabinets to get some extra money. Some are bitter and purposely destroy parts of the home. Others still have not had the money for p

For you first-time home buyers out there… Don't forget about the $7500 tax credit when you file your taxes this year. Designed to help stimulate interest in the housing market, this temporary provision provides a first-time home buyer (someone who hasn't owned a home in the last three years) a tax credit of up to $7500 for homes purchased between April 8, 2008 and July 1, 2009 . Basically the tax credit, which must be repaid over 15 years, is an interest-free loan from the government to help you offset the costs of home ownership. But here's the best part. The law allows qualified taxpayers to take the credit against either their 2008 or 2009 taxes. This means, if you qualify, you can buy a house this year before July 1st and receive the credit on the 2008 tax returns you're filling out right now! Imagine having an extra $7500 in cash to pay bills or credit cards or even pay for renovations on your new home. If you choose to utilize the credit on your 2009 returns, your

As foreclosure rates continue to grow, more and more sellers are turning to short sales as a way to avoid foreclosure. Some of you may be thinking, "What is a short sale?" and "How does a short sale work?" In a short sale, the seller negotiates with their mortgage lender to accept a price that's less than the amount they owe on the property. As part of this arrangement, the lender typically agrees to forgive the rest of the loan. As a result, the seller doesn't have to go though a foreclosure, the buyer picks up a property at a discount, and the lender avoids taking on the burden of unloading the property. Sounds good right? Well, there are a few things that you should be aware of... Sellers need to be aware of the fact that a short sale may still damage their credit, though probably not as much as a foreclosure. Also, lenders typically will only agree to a short sale if the seller is behind in their payments and has received a default notice. There is a

There are many factors to take into consideration when answering this question. One of course is interest rates, which have already reached historic lows (at least in the last 20-25 years) and continue to drop even lower. This won’t continue to happen forever! The foreclosure inventory continues to grow, keeping the majority of the prices low. Prices on homes right now are the lowest they have been in years. The programs that are available to first-time home buyers make it easier than ever to get a mortgage. Many of the programs offer low to no down payments, assistance with closing costs and options for the seller to contribute toward costs. Combine these three factors with the new home owner tax credit that the government has bestowed on first time home buyers ($7500 in your pocket) and it creates a an ideal situation. Put simply, there are a lot of good reason to buy right now! Many people believe that this is the golden age for buying real estate because everything is in the buyer’

The Housing and Economic Recovery Act of 2008 is a $300 Billion rescue plan aimed at helping struggling homeowners avoid foreclosure. Although the bill is several hundred pages long and contains a number of far-reaching provisions, here are the top three changes that may benefit you: 1. Tax credits . First-time home buyers who purchase their primary residence between April 8, 2008 and July 1, 2009 are eligible for up to $7,500 in tax credit, provided they haven't owned a home in the last three years and fit certain income parameters. The credit is generous, but it is actually an interest-free loan that is paid back over 15 years at $500 per year when taxes are filed. 2. Larger loans at lower rates . This is a great benefit for homeowners with "jumbo" mortgages, which range between $417,000 and $625,000. If you are considering purchasing a home in that price range, this provision may be ideal for you. Please call or email to schedule a meeting to discuss your options. 3.

Buying a home vs. renting is a big decision that takes careful consideration, as most mortgage consultants & realtors will agree. But the rewards of home ownership are great. For many years, purchasing real estate has been considered an extremely profitable investment. It is an achievement that offers a sense of pride, financial stability and potential tax advantages. Yes, there are certain responsibilities associated with owning a home. Landlords will often argue the benefits of renting, and for obvious reason. If you are renting, you're helping them make their mortgage payment. The numbers are staggering if you look at it this way. If you are paying $1,000 per month for an apartment, and you know your rent will increase 5% every year, then over the next five years you will pay your landlord $66,309. If you are currently renting a house, you may be paying much more than that each month. Either way, you gain no equity by shelling out this monthly housing expense and you certain

Most investments pay interest only on the amount you invest. However, Real Estate appreciates on the full value of the property even though you have invested only the amount of your down payment! Historically, Real Estate has shown a consistent growth in value, even when many other investment choices were less stable. Real Estate Makes Sense! Profit from Rental Income - let your tenants pay your mortgage! Increase Your Equity with Improvements - any improvements you choose to make increases the value of your investment Deductible/Depreciable/Deferrable - no investment reduces your taxable income better than real estate! Stable - minimal volatility & minimal risk Build Your Net Worth - as your mortgage is paid down, your equity in the property increases and adds to your net worth Live in Your Investment - one of the few investments that can put a roof over your head if you desire How much has your financial situation improved in the past five years? How much will it improve in the n

FICO® scores were developed by Fair Isaac & Company, Inc. for each of the credit repositories - (Equifax) Beacon®, (Experian formerly TRW) Experian/FICO and (TransUnion) Empirica®. They are simply repository scores meaning they only consider the information contained in a person's credit file; they do not consider a persons income, savings or amount of a down payment for a mortgage. Basically, the scores were designed to assess risk or a person’s likelihood to pay back a loan. The portion of the credit file considered and the weight (as provided by Fair Isaac) are as follows: Previous credit performance (35%) Trade line information specific to payment history Current level of indebtedness (30%) Current balance compared to the high credit Time credit has been in use (15%) Opening date Types of credit available (15%) Installment loans, revolving accounts, debit accounts Pursuit of new credit (less than 5%) Inquiries In their booklet, "Understanding your FICO® score" (av

Selling your home can be an exhausting experience. Last minute walk throughs, inconvenient calls, price adjustment and the possibility of being stuck with two mortgages are real concerns. If you are not completely prepared you could end up losing hundreds, even thousands, of dollars in profit. The difference between a profitable smooth transaction and a break even, miserable experience is often a fine line. In the majority of cases it comes down to the subtle know how of your real estate agent. By utilizing the knowledge of a well-trained real estate agent, you will ensure the quick, profitable sale of your home. Here are 10 important points that sellers should take keep in mind: Refusing to Make Profit Inducing Repairs - It always costs you more money to sell ‘as is' than to make repairs that will increase the value of your home. Even minor improvements will often yield as much as three to five times the repair cost at the time of sale. Your agent will be able to point out what re

Avoiding common mistakes can make the home buying process simpler and less stressful. Keep the following in mind to help improve your home-buying experience: Do Your Homework - Enter the market well-prepared by researching location, school district, deed restrictions and taxes. Don't Try To Make a Shrewd Investment - Focus on finding the best place for you and your family to live rather than trying to predict the real estate market. Location, Location, Location - Consider what part of town you would like to live in and avoid homes located on busy streets. Don't Overlook an Inferior Floor Plan for an Attractive Exterior - Choose a great floor plan over a great exterior because you'll spend far more time inside the house than outside. Don't Overlook How the Home Will Function For Your Family - Consider features that are most important to your family and choose a home that will meet those needs. Always Have the Home Properly Inspected When Buying a Resale - Hire a state-li