Askjasonhowe's Blog

A Shortsale May Be Your Best Option

askjasonhowe — Wed, 06 Jul 2011 16:45:27 +0000

Everyday homeowners wrestle with the heart-wrenching decision of selling their homes to avoid a possible foreclosure. A way to sell your home and avoid going through a foreclosure is to try to work out a short sale with your lender. While the possible sale of your home isn’t short, it is potentially better for your credit than a foreclosure. I wish short sales weren’t as prevalent in York County as they are, but unfortunately it’s the market we live in. Let’s deconstruct a short sale so you know what to expect and how to educate family and friends what their options may be.

Let me start by saying that there is no “standard” to how a short sale is handled or executed. Every bank has a different procedure and process for approving, or even allowing your home to be a short sale. So what is a short sale? A short sale is when you owe more on your home than it would currently bring selling it. You typically need to be behind on your payments and able to prove a financial hardship. Example: You owe $185,000 on your home but the home would only bring $149,000 if you sold it. There would be a $36,000 deficiency. Unless you can write a check for that amount plus your settlement cost (Realtor fee, transfer tax, deed preparation and other items) your only option may be to work out a short sale with the bank. Doing this allows you to sell the property and the bank usually forgives you the deficiency amount*.

There are many different aspects to a short sale and everyone’s financial position is different. As such, you should consult a real estate agent (ahem, maybe me????) to see what options you have and to get the process started listing your home to allow professionals to deal with the banks directly. There is no shame resorting to a short sale. It’s a valuable tool that you should utilize if your current situation makes it a viable option and you’re facing a potential foreclosure.

*for tax and legal implications consult an attorney or accountant

photo available courtesy of Renjith Krishnan for more of Mr. Krishnan’s work see: http://www.freedigitalphotos.net/images/view_photog.php?photogid=721

Is Your Condo Association FHA Approved (part Deux)

askjasonhowe — Tue, 21 Jun 2011 14:59:03 +0000

Last year I touched on issues that can arise if you’re looking to purchase(or refinance) a condo in York, Pa. With the amount of homes going to foreclosure and a change in approval guidelines, condo associations all over the County were struggling to maintain a certain criteria needed for FHA financing to be available in their developments. The tide of foreclosures hasn’t changed, but the guidelines for FHA have. Spot loans, the process of your mortgage provider sending documents to the Homeowners Association running the condo association to provide specific information and if this information was within FHA guidelines, given approval, is no longer allowed as of February 2010. Another noted change, condo’s approved in the past (prior to 2008) need to undergo a re-certification. Previously, once you received your certification from the FHA, you were good for life. That’s no longer the case. Every association must undergo a new approval every two years.

I can go on and on about the different changes to the approval process for FHA loans, but for what we are discussing here, it isn’t warranted. What you should know, is that if you’re a buyer looking to use the increasingly popular FHA or VA loans and are looking at condo’s to buy, you want to make sure that the association is eligible for FHA financing. If it isn’t, you may have to find an alternative means of financing (conventional or cash).

The Department of Housing and Urban Development(HUD) has made it easy for you to do some research on your own to see if potential associations are eligible for FHA financing(link provided below). With the rolling changes in the housing market and financial markets that drive home loans, it’s always wise to consult with your mortgage provider to see what their specific guidelines may be in lieu of FHA guidelines also.

https://entp.hud.gov/idapp/html/condlook.cfm

Weekly Market Report for Week Ending 01/02/2011

askjasonhowe — Tue, 04 Jan 2011 22:30:57 +0000

ASKJASONHOWE.COM

Weekly Market Activity York County, Pa

	Current	Last Week	Change
30 year fixed	4.96%	4.99%	-0.03%



Weekly Housing Market Activity
	Current	Last Week	Change
New Listings	234	137	59%
Sold	103	48	47%
Price Change	150	185	123%
Pending	506	618	122%
Expired	489	82	17%


Data provided by RAYAC multiple list service

New Listings- homes listed for the first time, re-listed with a new agent, or are expired listings that have extended the listing date.

Sold- homes that have cleared escrow and transferred to new owner(s).

Price Change- change in the listing price.

Pending- homes that have received, and accepted an offer; waiting to clear escrow.

Expired- homes that have not sold during the agreed upon listing date(s), by the listing agent and home seller (example: homeowner agrees to list home for 6 months and home hasn’t sold during this time). Expired homes can be re-listed by extending the contract date and will appear as new listings for data purposes.

Weekly Market Statistics York, Pa.

askjasonhowe — Tue, 14 Dec 2010 00:24:09 +0000

ASKJASONHOWE.COM

Weekly Market Activity York County, Pa

	Current	Last Week	Change
30 year fixed	4.90%	4.71%	+0.19%



Weekly Housing Market Activity

New Listings	137
Sold	48
Price Change	185
Pending	618
Expired	82


Data provided by RAYAC multiple list service

New Listings- homes listed for the first time, re-listed with a new agent, or are expired listings that have extended the listing date.

Sold- homes that have cleared escrow and transferred to new owner(s).

Price Change- change in the listing price.

Pending- homes that have received, and accepted an offer; waiting to clear escrow.

Expired- homes that have not sold during the agreed upon listing date(s), by the listing agent and home seller (example: homeowner agrees to list home for 6 months and home hasn’t sold during this time). Expired homes can be re-listed by extending the contract date and will appear as new listings for data purposes.

Weekly Market Statistics York County, Pa.

askjasonhowe — Sun, 05 Dec 2010 23:14:48 +0000

ASKJASONHOWE.COM

Weekly Market Activity York County, Pa

	Current	Last Week	Change
30 year fixed	4.71%	4.55%	+0.16



Weekly Housing Market Activity

New Listings	141
Sold	78
Price Change	174
Pending	596
Expired	178






Data provided by RAYAC multiple list service

New Listings- homes listed for the first time, re-listed with a new agent, or are expired listings that have extended the listing date.

Sold- homes that have cleared escrow and transferred to new owner(s).

Price Change- change in the listing price.

Pending- homes that have received, and accepted an offer; waiting to clear escrow.

Expired- homes that have not sold during the agreed upon listing date(s), by the listing agent and home seller (example: homeowner agrees to list home for 6 months and home hasn’t sold during this time). Expired homes can be re-listed by extending the contract date and will appear as new listings for data purposes.

Housing Statistics for York County

askjasonhowe — Thu, 11 Nov 2010 01:59:54 +0000

If I told you homes sales were down 3% over this same period last year would you believe me? Housing bubbles, market rebounds, tax credits, low interest rates, foreclosure procedures, foreclosure stops, you name it, we experienced it over the last year. So when I got our monthly market statistics from our local Realtor association, I was surprised that the decrease was only 3%. I guess perspective and data really are everything.

3,229 homes (an average of 329 a month or 10 per day) have been sold in York County as of the end of October. The median sales price for a home in York County is $152,900 which reflects a sales price decrease of 4%. While these numbers seem about right to me, I must admit I have an “inside baseball” look at the housing market. Having an optimistic view-point on almost everything around me, I have tended to think our local market was performing very well. That’s not to say we don’t face challenges or we have a grasp on the foreclosures issues or the economy, but our area has tended to have steady employment gains while other counties have been stagnant or had increasing unemployment claims. As the job market goes, the real estate market will follow.

Want to see how your particular school district has fared so far this year? Check out the link below to get the full report.

http://www.rayac.com/PDFS/October%202010stats.pdf

Wind It Up and Ride It Ten Days!!!

askjasonhowe — Sat, 11 Sep 2010 03:42:24 +0000

It’s that time of year again. The temperatures are dropping, there is less daylight , and I smell funnel cake! Or maybe that is a sausage sandwich with onion and peppers grilling. That can only mean one thing; the York Fair is in town.

Every September us folks here in York County get to indulge in some of the best eating this side of the Susquehanna. From candy apples to deep-fried Twinkies and Oreos, the fair provides something for everyone. In case I forgot to mention (I get side tracked thinking about food) the Fair also has rides, games, concerts and pig races. Yes, I said pig races!!! And if that isn’t enough to excite you, this year it runs 10 days from September 10th through September 19th.

The York Fair is steeped in great history. Being America’s First and Oldest Fair, the first fair took place in York, Pa. in 1765. The Fair has a great website at www.yorkfair.org that will do a better job of explaining the history of the Fair than I could here. Outside of the great history the Fair has, it’s also a great tradition of many York County families. I know my family will be stopping by a few times while it’s in town. I hope to see you there. I will be the guy with the funnel cake sugar all over his face and nose.

How do YOU Feel About the Housing Market?

askjasonhowe — Tue, 31 Aug 2010 18:36:56 +0000

I spend most of my day touting the benefits of home ownership to anyone who will listen, hoping I can help them buy or sell their home. But the other day something dawned on me; I really don’t spend much time listening to others about how they REALLY feel about the housing market. That’s not to say I don’t listen or ask my clients and customers how they feel about the market and what they expect to happen, it’s just I am usually ready with a response to counter their argument if they disagree that the housing market is moving in the right direction (which I think it is). The first thing I learned in sales are objection techniques to get others to “buy” into, or what I am trying to sell them. I always promised myself I wouldn’t get blinded by “closing” the deal, rather, I want to build trust and respect with the information and relationships I build with my clients.

Part of my progress in becoming a better Real Estate professional is that I am now committed to asking customers and clients how they feel about the market. Instead of reflexively defending the market and preaching the gospel of buying NOW, I will take a tactful approach to understand they are right, it may not be a good time for them to buy or sell. At the very least, they are correct about how they feel and how they see things moving forward for THEM.

While interest rates are low, inventories are high and homes are priced to sell, it doesn’t mean people are in a position to buy a home, no matter how attractive financing and prices are. Job loss, fear of job loss, or fear of the economy being stagnant are all legitimate and real reasons to delay buying or selling a home. Buying or selling your home is a very personal experience. It’s not always a linear process. The stars may be perfectly aligned to buy or sell, but it may not work for you and that’s ok. People will always have a need to buy or sell homes. Some of the variables may change, but it will still be a good time then, because it’s the time that’s right for you. Until then, I am listening more than ever. They say you learn more by listening than talking, so share how you feel about the market in the comments. I’m more than glad to listen(read) to them.

I Can’t Move Then!

askjasonhowe — Wed, 04 Aug 2010 17:08:02 +0000

So you received a great offer on your home and the settlement date works great for you. The inspections are ordered, completed and everything is in the clear. You found a great home to move to and everything has worked out on that property as well. Time to pack! No time to waste with the settlement date approaching. Oh, and if I didn’t mention this before (which I know I have), you have vacant the home on the date of settlement. Yes, you need to have your whole house packed; all of your valuables need to be on that moving truck the day of settlement and you need to have the place broom swept clean for the new owners.

No matter how many times I have this conversation during my listing presentation, from time to time it becomes an issue for one reason or another. While it is entirely possible to get an extension of time to move your belongings out, it creates a situation that is not as controllable as moving the day of settlement. For one, the new owners probably need to move into their new house the day of settlement because they also have no place to go. Then we always get into a potential liability problem. A lot of home owners insurance and mortgage companies don’t cover or allow for others to stay in the home after it becomes the buyers property. Even for a day or two, the buyer could potentially be violating the guidelines spelled out in their mortgage on renting/leasing. The homeowners policy may not cover your belongings in the event of a fire, burglary or negligence on either parties.

There are too may variables that could occur that we need to protect ourselves against. Moving out the day of settlement and moving into your new home, is the best way to mitigate any unseen issues. Besides, don’t you just love the pressure of packing and moving in such a short amount of time?

Regret Missing the Tax Credit?

askjasonhowe — Tue, 27 Jul 2010 19:10:23 +0000

I am inundated with emails from various real estate interest to write my Congressman or Congresswoman telling them to reinstate the home buyers tax credit since it expired in April. I usually steer away from political positions organizations take because in my opinion, it’s the main reason our current system of democracy is broken. So I was ecstatic when I received some marketing literature from a real estate company doing business in another state on why missing the tax credit was a good thing. Instead of beating me into submission to correspond with my representative, it gave me clear, concrete advice on why this tax credit isn’t such a big issue. At least right now.

The headline that grabbed my attention was 54,612 Reasons Why You Should Be Thankful You Missed the $8,000 Tax Stimulus Deadline. The message behind this marketing is simple; *For missing the $8000 you gained $54,612 in interest charged for your loan over a 30 year period with today’s interest rates of 4.25% versus the 5.5% loans commanded during the tax credit. So while you won’t get Uncle Sam to send you an $8,000 stimulus check, you certainly will save a great deal of money purchasing a home NOW versus buying to take advantage of the tax credit.

While the tax credit certainly was GREAT for business, I believe there are great incentives (low-interest rates, abundance of great, affordable housing) right now that make buying a home more affordable than they have been in a long time. So while I won’t be writing my representative on this topic, I will be educating as many people as possible on why buying a home now is a great idea.

*information provided to me by Char MacCallum Real Estate Group; example was based on a home sold for $200,000; interest rates change daily so savings are based on a rate lock at 4.25%.