Wake Foreclosures and Investment Guide

Beginning June 15, real estate agents working with distressed homeowners whose loans are backed by Fannie Mae and Freddie Mac should expect to receive a decision on a short sale offer within 30-60 days.

The GSEs issued new guidelines Tuesday that fall under the Servicing Alignment Initiative rolled out last fall and aim to bring greater transparency to the short sale process and expedite decisions related to these pre-foreclosure sales.

Not only is a short sale an effective foreclosure alternative when home retention is no longer an option, but it keeps homes occupied and helps to maintain stable communities, according to the Federal Housing Finance Agency (FHFA).

Addressing real estate practitioners’ No. 1 complaint about short sales, FHFA directed Fannie Mae and Freddie Mac to establish a new uniform set of minimum response times that servicers must follow in order to facilitate more efficient short sale transactions.

The GSEs’ new short sale timelines require servicers to make a decision within 30 days of receiving either an offer on a property under the companies’ traditional short sale programs or a completed Borrower Response Package (BRP) requesting short sale consideration, whether it’s through the federal government’s Home Affordable Foreclosure Alternative (HAFA) program or a GSE program.
If more than 30 days are needed, servicers must provide the borrower with weekly status updates and come to a decision no later than 60 days from the date the BRP or offer was received.

According to the GSEs, this 30-day add-on will provide some leeway for servicers who may need more time to obtain a broker price opinion (BPO) or a private mortgage insurer’s approval for a short sale. All decisions must be made within 60 days.

In the event a servicer makes a counteroffer, the borrower is expected to respond within five business days. The servicer must then respond within 10 business days of receiving the borrower’s response.

The GSEs plan to use the new short sale timelines to evaluate servicer compliance with the Servicing Alignment Initiative.

Edward DeMarco, acting director of the FHFA, says the GSEs new borrower communication and timeline requirements for short sales “set minimum standards and provide clear expectations regarding these important foreclosure alternatives.”

GSE servicers must comply with the new minimum communication time frames for all short sale evaluations conducted on or after June 15, 2012, although servicers are encouraged to begin implementing the new requirements sooner.

“I applaud Fannie and Freddie for finally coming out with real guidance with real world timelines for their servicers,” commented Anthony Lamacchia, broker/owner of McGeough Lamacchia Realty Inc., which specializes in short sales. “There is no question that this will help short sales and the market as a whole.”

Last year Freddie Mac completed 45,623 short sales, a 140 percent increase since 2009. Fannie Mae’s short sale completions shot up by 101 percent over the same period, totaling around 79,800 in 2011.

more than 30 days are needed, servicers must provide the borrower with weekly status updates and come to a decision no later than 60 days from the date the BRP or offer was received.

According to the GSEs, this 30-day add-on will provide some leeway for servicers who may need more time to obtain a broker price opinion (BPO) or a private mortgage insurer’s approval for a short sale. All decisions must be made within 60 days.

In the event a servicer makes a counteroffer, the borrower is expected to respond within five business days. The servicer must then respond within 10 business days of receiving the borrower’s response.

The GSEs plan to use the new short sale timelines to evaluate servicer compliance with the Servicing Alignment Initiative.

Edward DeMarco, acting director of the FHFA, says the GSEs new borrower communication and timeline requirements for short sales “set minimum standards and provide clear expectations regarding these important foreclosure alternatives.”

GSE servicers must comply with the new minimum communication time frames for all short sale evaluations conducted on or after June 15, 2012, although servicers are encouraged to begin implementing the new requirements sooner.

“I applaud Fannie and Freddie for finally coming out with real guidance with real world timelines for their servicers,” commented Anthony Lamacchia, broker/owner of McGeough Lamacchia Realty Inc., which specializes in short sales. “There is no question that this will help short sales and the market as a whole.”

Last year Freddie Mac completed 45,623 short sales, a 140 percent increase since 2009. Fannie Mae’s short sale completions shot up by 101 percent over the same period, totaling around 79,800 in 2011.

WASHINGTON (Reuters) – The relentless decline in home prices is nearing an end and prices should rise for the first time in seven years in 2013, but a possible new wave of foreclosures could threaten the recovery, according a Reuters poll of economists.

The median forecast of 24 economists polled by Reuters was for the S&P/Case-Shiller 20-city home price index to end the year unchanged. That was the same finding back in January for this house price gauge, which covers 20 cities.

“We are expecting a gradual improvement, but if we get a big wave of new foreclosures coming to the market, price declines could be even greater,” said Yelena Shulyatyeva, an economist at BNP Paribas in New York.

The survey forecast the S&P/Case-Shiller home price index rising 2.0 percent next year, up from 1.5 percent in the January survey.

The housing market’s collapse pushed the economy into its longest and deepest recession since the 1930s. Historically, housing has led the economy out of recession, but it has been the weakest link in the recovery that started in mid-2009.

While residential construction accounts for a mere 2.3 percent of gross domestic product, home prices have an oversized reach in the economy, influencing a wide range of consumption decisions by households.

House prices have so far fallen about 32 percent from their peak at the end of 2005, and an estimated 11 million Americans now owe more on their homes than they are worth.

A resulting tide of foreclosures has held back the housing market’s recovery.

The survey predicted about 1.5 million foreclosed properties will come on to the market this year. While there is no comparison for this figure, most analysts believe the foreclosure wave has either peaked or is close to topping out.

Given that foreclosures and the accompanying fear of further price declines are the main obstacles to any housing market recovery, few analysts say that further purchases of mortgage backed securities by the Federal Reserve will help.

Fed officials meet on April 24 and 25 to debate whether further steps are needed to drive borrowing costs lower to spur stronger economic growth.

Mortgage rates are already near record lows and house affordability is the best in history.

“The problem with the housing market is not necessarily that mortgages are expensive,” said Millan Mulraine, a senior macro Strategist at TD Securities in New York.

“It’s more the expectation that prices may continue to fall and cause a lot of potential buyers to sit on the sidelines to wait for more attractive entry points. I don’t think there is lot more mileage to be achieved from MBS purchases.”

Further MBS purchases by the U.S. central bank, however, could help keep mortgage rates low as the economy’s recovery gains momentum.

The survey forecast the 30-year mortgage rate averaging 4.00 percent in 2012, down from 4.15 percent in the January poll.

Although job growth slowed in March, the labor market is expected to continue strengthening this year.

That should help to lift home sales. Sales of previously owned homes are expected to register an annualized 4.70 million unit annual pace in both the second and third quarters of this year before topping at 4.80 million units in the fourth quarter.

That compares to a rate of 4.60 million units and 4.70 million units in the second and third quarter respectively in the January survey.

“This gradual healing is encouraging, but we must tread carefully as the housing market is still far from a robust recovery,” Michelle Meyer, an economist at Bank of America Merrill Lynch in New York.

(Reporting by Lucia Mutikani; polling by Snehasish Das and Aakanksha Bhat; Editing by John Stonestreet)

Do you live your life by a set of rules or a certain life philosophy?
I’m sure you do to some extent. You know, “Treat others as you want
them to treat you?”

Now your rules may not be written down, but you follow them
regardless. Your life rules were probably formed by trial and error
over years of lessons learned through various successes and failures.

So the question you’ve got to ponder is should you have a philosophy,
or a set of rules for business? I’ve developed a philosophy for business
over the years in the trenches. Here it is…

1. Our business(es) should be designed to enhance our lives. Most small
business owners operate under an opposite philosophy. Their lives revolve
around their businesses.

2. Consistent lead generation is as important for business as breathing is to life.

3. The most productive use of our time is creating “sales assets” for our businesses.

4. The quality of leads generated is more important than the quantity of leads
generated.

5. In building complete businesses with multiple front-end and back-end income
streams.

6. Systems are the key to consistent income, wealth and freedom.

7, Resourcefulness is most important quality an entrepreneur can develop.

8. Money follows speed. Take action quickly on good ideas.

9. Pay attention to all successful businesses and copy what you see working in other
industries inside your business.

10. We must consistently track, monitor and measure. This applies to lead generation,
lead conversion, and client retention.

11. Most people believe in constant and never ending improvement. However, constant
and never ending TESTING is better.

12. Time is more important than money.

13. Our health is our most important asset.

14. Uninterrupted time away from business is critical for success and happiness. This
means we have to shut our cell phones off and disconnect from the internet frequently.
Everything will be okay. Really it will.

15. Mistakes, setbacks and challenges help us become better entrepreneurs.

16. Life is short and it’s important to laugh, play and have fun. Building a business is
really a big game. Don’t take things too seriously.

I have shared this with you, because I’m hoping it might help you with your business!

Best,

- Rob Minton
RenegadeMillionaireStrategies.com

P.S. If you’re not sure what a sales asset is, check out this video I recorded a year or
two ago about sales assets and how important they are for business. The video is here:

http://go.webvideoplayer.com/view/Qp6WXeqc3vwrPORACHJK24351

Author & consultant Ed Neering

Most of the news lately about real estate has been dismal: Home prices are swooning, foreclosures ballooning.

There is, however, one bright spot: the rental market, where demand is up and rents are rising. That’s partly because those foreclosures have turned more than 4 million former homeowners into renters, but also because many other prospective homeowners, worried about losing their jobs or housing prices falling a lot further still, are reluctant to buy now.

As with many investments, the best time to get in is when most others are sitting on the sidelines. To figure out whether you can benefit by investing in rental property, here’s what you need to know.

THE CASE FOR BUYING NOW

Many factors make this a great time to invest. Mortgage rates are at a 40-year low, and homes in many areas are ultra-cheap. Meanwhile, demand for rentals has risen in more than 500 cities, according to recent Census data. That, in turn, has enabled landlords to charge more. Hotpads.com, a real estate research firm, reports that rents nationwide jumped 11.6% in 2010, to $1,320 a month.

You’ll need that rental income to tide you over until home prices bounce back; in fact, the typical investor today plans to hold for 10 years, according to a survey by the National Association of Realtors.

If you can hang on that long, you’ve got a good shot at solid gains, especially if you’re financing the home purchase. “Whereas leverage is dangerous when buying stocks, it can be a good long-term strategy with real estate,” notes real estate investor and Columbia University adjunct finance professor Marshall Sonenshine.

The big catch: “Can you afford to hold the property that long and not need the equity for your kid’s college fund?” says Sonenshine. Or whatever other pressing need might crop up.

You’ll also face some tough financing rules. Most banks now require a down payment of at least 20% to 25% and evidence you have enough cash to cover six months’ worth of mortgage, tax, and insurance payments.

HOW TO FIND A GOOD DEAL

Investment real estate is like produce: It’s best bought locally. “Buy something you can get to in 10 minutes,” says Seattle real estate investor Bill Snyder.

Familiarity with the neighborhood also limits nasty surprises like a noisy bar or a nearby development competing for renters.

Work with a local realtor who has experience with rentals and can help you assess how attractive a given home will be to tenants.

And while prices on multifamily dwellings haven’t dropped as much as they have on single-family homes, don’t ignore plexes: Intake from a few rents instead of just one will boost your cash flow; a single vacancy won’t hurt as much; and you could benefit from economies of scale for things like appliances and painting. But stick to buildings with four units or fewer to avoid stricter financing requirements, such as a bigger down payment and higher mortgage rates.

Once you’ve identified candidates, crunch the numbers. The goal: to make sure your rental income will at least cover your loan payments, plus a 20% cushion to handle repairs, vacancies, and property management.

To figure out what you’ll garner in rent, ask sellers for recent leases, says Snyder, and double-check their numbers by perusing sites like Rentometer and Craigslist for similar rentals in the neighborhood.

Assume your mortgage rate will be at least a half-point higher than rates on owner-occupied properties. Factor in insurance and property taxes, and bank on a 5% vacancy rate. Otherwise, “one empty month can kill you,” says Ellie Berlin, a broker with Houlihan Lawrence in Larchmont, N.Y.

KNOW WHAT YOU’RE IN FOR

Brush up on your people skills: Owning rentals also means responding to tenant complaints, like the 2 a.m. phone call about a broken toilet. Want to palm off the grunt work? You can hire a handyman (around $45 an hour) or a management company (8% to 10% of monthly income plus a half-month’s rent for filling vacancies), but the luxury will eat into cash flow.

To find your own tenants, creative ads on Craigslist are your best bet. Run credit and reference checks (National Tenant Network, at ntnonline.com, can help). And invest in small touches to make your place stand out, such as cool lighting fixtures or antique door hardware. Those will pay off when it’s time to sell too. If your interested in getting a list of foreclosure and discounted homes: go to www.HollySpringsForeclosures.com

In native cultures, medicine men wield power because of the community’s belief that they have magical powers.

To reinforce their mystique, these crafty connivers invent words and phrases that their followers can’t understand. The idea is something like: “If you don’t understand what I’m saying, how can you doubt my power?”

Modern-world medicine men—brokers, doctors, and lawyers—do the same thing. Like their primitive predecessors, they often wield power over their clients by verbally intimidating them.

Sometimes they do so to save time. By talking over their clients’ heads (but with authority), they can often prevent their clients from asking questions that require long and complicated answers.

Sometimes, they use jargon to trick their clients into doing something that they would probably not do if they understood the business at hand.

And sometimes, they speak cryptically to maintain what they view as a desirable superiority over their clients.

Now, before you send me angry letters about unfair generalizations I am making about some groups of professionals, I’d like to be the first to say that I realize that this sort of behavior is not ubiquitous. Not all doctors, lawyers, and brokers are verbal bullies. But, I have worked with many doctors and lawyers and brokers for a long time, and I can tell you this: verbal intimidation exists. It’s so common that for many it is an essential professional tool.

You should never let anyone verbally intimidate you. This is true for all your personal relationships, but it is also true for all your business relationships. Today, we are speaking about your professional relationships—the relationships you have with doctors, lawyers, and brokers.

I used to allow brokers, doctors, and lawyers intimidate me. Whenever I used them, I acted like it was my job to please them…and not the other way around. When I talked with them, I was always on my best behavior…always grateful, always self-effacing.

I felt that since I didn’t understand medicine, law, or finance, I was in no position to tell them what to do. Nor could I evaluate the advice they gave me. I was a know-nothing. They were omniscient. All I could do was be a good boy and hope to be treated kindly.

This was a very costly mistake. It induced me to undergo medical treatments, to spend big money on contracts that were overly complicated, and to make investments that I instinctively knew would never be profitable.

It took me a long time—over twenty years—to get tired of being taken advantage of. I probably wasted more than a million dollars because I allowed myself to be bullied.

Nowadays, I am diligent about standing up for myself with professionals. In every interaction I have with them, I remind myself that I am their boss and they work for me.

If you think you might have the same problem I had, here are some ways you can gain control of all your professional relationships:

Change the way you think about professionals.

Many people (consciously or not) put professionals on pedestals of reverence. They accord them respect and courtesies they don’t give to plumbers, say, or other tradesmen. As a result, they are reluctant to question the advice they get, or worse, they feel compelled to follow it out of some sense of submissive gratitude.

The truth is, doctors, lawyers, and brokers are nothing more than tradesmen. They have knowledge and skills that they sell. To earn their fees, they must work hard and well for you.

Make yourself “the boss of you.”

Promise yourself that, starting today, you will not let them bully you—and that you will actively and consciously “be the boss.”

Rather than think, “Gee, he’s such an expert,” think, “I am paying this guy good money. He better prove to me he is an expert or I will fire him.”

And when you get advice, instead of thinking, “I had better do what he says or he may be mad at me,” think, “This guy may know his field of expertise, but he doesn’t know me. I am the best and sole judge of what is best for me. Only I am qualified to decide what I should do.”

Evaluate the professionals you are using.

Think of the professionals you work with and rate them according to the following three criteria:

1. Do they make you feel like you are in charge?

A good professional relationship is one where the client is the boss and he feels like the boss. You should be able to figure out how you feel about the professionals that you use instantaneously.

If you don’t feel in charge, then you aren’t.

If you don’t feel you can speak frankly about any fears and concerns you have, then you are not in charge.

If you don’t feel free to criticize them, then you are not in charge.

Here’s what you need to understand: the only way you can feel like the boss is if the professional feels like you are the boss. If he doesn’t—if he thinks you are just another schmuck who needs his help—then you will never be in charge.

2. Do they give you advice that is easy to understand?

A good professional feels obliged to communicate clearly with his clients. That means translating the arcane language of his profession into advice that can be readily understood.

You can determine whether your broker, doctor, or lawyer has a commitment to communication by asking:

Do I feel like I spend enough time with him? Or do I feel like he is usually busy and I’m taking up his precious time?

When he sends you documents, does he often attach a cover letter that explains, in layman’s terms, what the documents say?

Do you frequently feel lost or confused when he gives you advice? This should rarely happen… and when it does, you should feel free to ask questions and get clear, understandable answers. Do you feel that way?

3. Do they understand and care about your concerns and needs?

A good professional doesn’t treat all his clients exactly the same. He understands that each has his own specific concerns, worries, problems, and needs. A good professional takes time to understand this and tailors his advice accordingly.

If you feel like you are getting cookie-cutter advice, or if you feel like he doesn’t really care who you are, then he is not doing his job.

What to Do to Make Things Right

How do you now feel about the professionals who are working for you? Are you feeling a bit upset? Have you realized that you may be getting less from them than you deserve?

If so, here’s what I suggest. Call or email the offending party and say you want to have a 15-minute meeting about your “professional relationship.” If they ask why, say that you want to talk about whether “the value I’m getting is worth the money I’m paying.”

If he refuses to have the meeting, then you don’t need to put another thought into it. He isn’t doing his job. Get rid of him.

If he does give you a meeting, go in prepared. In just a few simple sentences (that you have prepared beforehand), tell him exactly how and why you are unsatisfied. Don’t be judgmental. Express your concerns as statements of your future expectations. In other words, don’t say, “You talk in an intimidating way.” Say, “I want crystal-clear explanations of all your advice and full and clear answers to all my questions. Can you provide me with that?”

That’s really all you have to do. If you end up “firing” someone, don’t spend a moment regretting it. Just go out and find someone new and better.

And find that person by interviewing them. In the first meeting, list your expectations and ask them if they can meet them.

Be the boss. It is your body, your business, and your money.

This is one of the reasons I don’t like 401k’s. I really wish people would take the time to learn as much as they can about financial education. This is a great video 60 minutes did. Enjoy

Would You Partner With Tebow?

You don’t need to follow sports to know who Tim Tebow is.

For the unfamiliar, Tebow is the quarterback for the Denver Broncos in the National Football League. They made him the quarterback after they started the season poorly, and he won six games in a row to help them make the playoffs. They lost in the second round, but it was unexpected for them to make it as far as they did.

Along the way, Tebow was a polarizing person. Some people loved him, and some kept saying that he isn’t good enough to be an NFL quarterback. The Broncos changed the way they play offense to suit his strengths and hide his weaknesses, and that made him stand out even more.

He became associated with “Tebowing,” a gesture made famous by his kneeling and giving thanks to God (he is very religious). He had tons of articles written about him and was the subject of sketches on “Saturday Night Live.” All the while, it seemed as though people kept looking for things to criticize about him.

That will happen when someone is outwardly expressive about his faith. Adding to Tebow’s persona is the fact that he is a self-proclaimed virgin and is outspoken about being a nice guy. And you know what they say about where nice guys finish.

I recently read an article on Inc.com with the headline “Why you should hire Tim Tebo.” It went on to explain that he’s a winner, a proven leader, a team player, etc. So I started thinking about what employers look for when they make hiring decisions and took it a step further.

Would you be a business partner with Tim Tebow? Would you be his friend? Would you consider working for him, instead of being the one who hires him?

I firmly believe that the people you surround yourself with have a major impact on you. Surround yourself with positive, interesting, challenging people, and you are more likely to be more positive, interesting and productive yourself. I think this is the case whether it’s friends, co-workers, business partners, or other people.

And from what I’ve read and heard about Tebow, he would be a good person to associate with. He’s loyal, he has respect for others, and he’s committed to being the best he can be. I like the fact that he seems to know that he’s considered to have flaws, and he doesn’t shy away from the criticism. I read that the University of Florida, where he played in college, has a plaque hanging at its stadium with something called “The Promise,” which Tebow made following a loss.

The plaque reads:

The Promise

To the fans and everybody in
Gator Nation, I’m sorry.
I’m extremely sorry. We were
Hoping for an undefeated season,
That was my goal, something
Florida has never done here.

I promise you one thing, a lot
Of good will come out of this.
You will never see any player in
The entire country play as hard
As I will play the rest of the
Season.

You will never see
Someone push the rest of the
Team as hard as I will push
Everybody the rest of the season.
You will never see a team
Player harder than we will
The rest of the season.

God Bless.

Say what you will about his religious devotion or his ability to throw a football, but you can’t deny his commitment both to his own contributions and to making those around him better. You can’t question how he holds himself accountable as a leader for his team’s failure. And you can’t help but feel like he’s a guy who will learn from, and be motivated by, his mistakes.

Later in the year he made that promise, Tebow’s team won the national championship.

So he gets made fun of. He’s called a bad quarterback. Even his bosses on the Broncos won’t commit to Tebow as the long-term quarterback of the team.

But he’s a winner. He’s steadfast in his beliefs. He is a hard-worker, a positive person and motivated to bring success to those around him.

That’s not a bad guy to be around.

RICH DAD TIP
“Those who work the hardest and are paid the least suffer the most from the constant erosion of money’s value. Since money has an ever-declining value, a financially wise person must constantly seek ways to create value and produce more and
more money.”
I would recommend signing up to http://www.RichDadWorld.com for Free Content on raising your Financial IQ.

By Ed Neering Holly Springs Real Estate

Despite all the negative media coverage in the real estate market, more than half of all homeowners not only say that they are confident that they know the value of their homes but also emphasize that the properties are worth more now than when they bought them. According to a national Rasmussen telephone survey, most homeowners are “confident” that they know what their home is worth, and about a third (29 percent) believe that the property has lost value since they made the purchase. However, only 44 percent believe that their home is worth more than the amount they still owe on their mortgage.

While the survey itself is interesting, it also demonstrates just how awry homeowner perceptions are of the real estate market. While 56 percent of homeowners believe themselves to be underwater, in November 2011 a Core Logic study indicated that 22.1 percent of homeowners were actually underwater. Furthermore, Core Logic analysts predicted that this number would continue to fall throughout 2012, although the decline will be due, at least in part, to a spike in foreclosures in the New Year. Even if you use the more cynical Zillow’s numbers instead, the number of homeowners actually underwater hovers around a third rather than the 56 percent who believe themselves to be submerged.

These negative perceptions and assumptions about one’s personal housing situation can lead to life-changing decisions, such as the decision to do a short sale or even default on a loan. Furthermore, they impact homeowners’ participation in the real estate market and are certainly limiting other fiscal and budgetary decisions in ways that may not be appropriate or necessary if the homeowner only knew the actual condition of their mortgage and their equity – or lack thereof. Given how significant an impact perception has on the real estate market, what should be done with these numbers? Is the tidal wave of pessimism sweeping the country’s homeowners truly warranted? For a list of local Foreclosures go to www.HollySpringsForeclosures.com

I ran into a fellow real estate professional the other day who had sold a listing I was somewhat familiar with. He told me the story of how the deal for this home unfolded, and I was struck by how this one deal showed both the ups and downs of the current real estate climate.

The buyers were a relatively young couple, looking to buy their first home together, although they owned a small condo the young man had purchased a few years ago. By the other agent’s account, they are excited to be spending the holidays in their first home. I believe that homeownership is still very much a part of the American dream, and hearing about this couple in their own home for the holidays reinforces it for me.

The agent told me something else that his clients shared with him: “They know that in a normal market, they probably wouldn’t have been able to swing it.”

They bought the home for about 15 percent less than what it had sold for in 2004, he said, but that purchase price included a nice chunk of change that the seller put toward their down payment and closing costs. Everybody ended up happy, but the truth is that without a motivated seller, they might not be enjoying this home for the holidays.

Motivated sellers, of course, are more plenty now than they were, say, four or five years ago – one factor in the current real estate climate that helped the buyers. Actually, another factor helped, too.

The agent told me that this particular home was in the same neighborhood as another home the buyers absolutely fell in love with. The first home, which they considered their dream home, was sold on the day they attempted to put their offer in. They were a little down about that, but when the agent showed them a similar home in the same neighborhood, they jumped on it and their offer was accepted.

They are glad they did, and the situation underscores another aspect of today’s market: With the inventory of homes for sale and the choices available to buyers, it’s not that difficult to find more than one that you love.

It made me think that in addition to affordable purchase prices and low interest rates, the number of quality properties on the market AND the number of motivated sellers can be counted as reasons buyers have it so good right now.

The deal also illustrates some negatives about the market.

The seller, as it turns out, came off his listing price AND agreed to many concessions, including leaving an expensive pool table and hot tub, because these particular buyers were prequalified, had some down payment money and steady incomes. In fact, the agent said these buyers were the only clients he was currently showing houses to who could qualify for this particular home.

Things got a little dicey, however, because despite having it on the market for months, the couple couldn’t sell that condo. Had the seller not been so flexible in the deal, they might not have qualified because of the mortgage on the unsold condo. As it turns out, they decided to rent it and have a signed lease that will provide some income until they do sell it.

That shows a few things about the current market. First, that there are probably more affordable, quality homes out their than there are qualified buyers, probably due to the banks’ stricter lending standards of today. And second, it shows that if you DO happen to be a qualified buyer, you’re practically golden.

But it also shows what sometimes becomes a snag – you had a motivated seller, very qualified buyers, but the purchase was touch-and-go for a while because the couple – considered “move-up” buyers – had a home they were having difficulty selling.
I like to point out that “move-up” buyers who feel like they are taking a loss on a house they sell for less than they paid can take some comfort in the fact that they are also likely buying MORE house for much less than they would have paid in the past. However, sometimes if the buyers’ current house can’t sell, the math just doesn’t work out.

Again, I am glad that this particular sale seemed to make for happier holidays for all parties involved. It does, however – in one deal – show you many of the factors affecting the current real estate climate.

If interested in the best local deals in Holly Springs, Apex, Cary or Fuquay Varina go to
www.WakeForeclosures.com Includes foreclosures, HUD homes,and vacant highly motivated sellers. Right now is the time to take advantage of the low interest rates and rising rents.