What does the market look like for next year in Toledo?

I love this time of year! We have a great opportunity to learn and work on new systems to give our clients even better service next year. This week we will be making our favorite fall recipee Pumkin Apple Bread to deliver to our clients and friends for Thanksgiving!

Last week we learned some interesting news from Dave Liniger ceo of RE/MAX International about what we should expect the next year to look like for both buyers and sellers. Due to the 4 million plus foreclsoures still on the books to clear-it is going to take a couple more years for the housing market to recover.

Sellers need to be prepared to price their property to compete in todays market. Even with the current tax credit extension helping the market improve, todays seller should set reasonable goals to avoid frustration. The good news-if you have owned your current residence for 5 years-you may qualify for a tax credit as well!

Buyers and investors-this is still a great time to pick up incredible deals!  Save that Christmas cash for a long term investment and a new home!

We are going  to continue to provide great service and plan on ways to spoil our clients some more next year!

HAVE A GREAT THANSGIVING!

Tax Credit Extension For Home Buyers

Great news for both buyers and sellers!!!

I am so pleased to see the $8000 tax credit for first time home buyers extended and now it includes a $6500 credit for some repeat buyers as well!  The credit is being used by many of our purchasers to do improvements on foreclosure homes they have purchased or just regular updates like carpet and paint.

This is going to help so many families that need to sell a home as well. The buyer activity will stay active for a few more months. If you are moving into another home and you have owned your current residence for 5 years or more, you may also qualify for the $6500 credit !

Do you qualify for the new credit? Check on some details in the follwing article and as always call us if you have additional questions about buying or selling a home!

MSNBC Article

Tax Credit Possitive News For Extension

Beautiful home available in Rossford and you may still be able to get the TAX CREDIT!!! Check out the latest news!

Boston News reported that the senate has backed an extension of the 2009 tax credit and we are seeing the possibility of opening it up to more that just first time homes buyers! Great article to share!

http://www.boston.com/business/articles/2009/10/29/senate_leaders_back_extending_home_tax_credit/

Where are all these Foreclosure Homes in Lucas and Wood County?

October is half over and my buyer clients keep wondering where all these foreclosure homes are that you see on the default lists. Well, good news for buyers! They are coming up soon!

Realty Trac is one my favorite  foreclosure sites I use to gather information about what is up and coming in the foreclosure market here in Lucas and Wood County. Realty Trac showed an increase in foreclosure auctions in Aug. of this year. Basicly put that means a lot of the properties were taken back by the banks in Aug. Since it takes a few months after the auction sale to get these homes back on the market, you will see an increase in available foreclosure properties soon!


Lucas County was the fourth largest county in Ohio for foreclosure auctions and filings in Aug, according to a recent report from Realty Trac. Ohio is among the top ten foreclosure states due to unemployement.


Now is the time to start viewing and investing in these properties! The prices are super low and the return after this mess is cleaned up will be great! Investors may want to consider rental property over "flips in this market. Both first time home buyers and move up buyers can find unbelievable deals! If you are planning a move, make sure you will be in the home for a few years to let the market recover.

Question? Please feel free to comment or contact me at 419-266-7911

Lucas and Wood Co Property Tax Reductions Due to Foreclosures

ARE YOU PAYING A HIGHER PROPERTY TAX THAN YOU NEED TO?

If you have bought a home or are considering a purchase, don't forget to have your taxes evaluated for todays market! You may be pleasanlty suprised to find out they should be lowered. Many purchasers are so busy managing their move when they close on a home that they forget to take this next step! It is easy to forget since property tax ussually becomes part of our mortgage payment. With property values decreasing at this time, it is impotant to make sure you aren't overpaying. Many of our clients have had great success getting the tax reduced on their homes.

Buyers should be careful if they are considering a foreclosure or short sale purchase. The price on the home may be affordable but if the tax is really high or way beyond your budget then it is always best to "plan for the worst and expect the best". You may be able to have the tax reduced for now but it could eventualy go back up when values return so make sure it will still be affordable if that should happen.

Once you have purchased a home, you may be able to have the taxes reduced by taking your closing statement and a recent appraisal or CMA (ask a Realtor to prepare) to the county auditors office.

Blade article on tax reductions in Lucas County

http://www.toledoblade.com/apps/pbcs.dll/article?AID=/20090315/NEWS16/903150329

Foreclosure Home Buyers-You Can and Should Have A home Inspection!

The typical REO or forelosure home can sit vacant for anywhere from 3 months to 2 years. We have many clients that don't realize they can and should have a home inspection on this type of property just like you would with any home. On most foreclosure properties the utilities are turned off and have been off for several months. When you first view this type of home-you may not be able to see some of the defects. The risk involved in buying a foreclosure home can be drastically reduced with a few simple steps. Even though these properties are sold "as is" the pruchaser has a right to a home inspection and can withdraw their agreement if the repairs needed are beyond what they had originally planned for.

1. Be sure to have an inspection period of 7-10 days written into your purchase agreement.
2. Find out if utilities will be turned on for the home inspection.
3. If there is a delay in the utilities being turned on for your inspection-be sure to ask for an extension of   the inspection period.
4. Read your foreclosure contracts carefully or have an attorney review them for you.

There are several other steps you can take to protect yourself with this type of purchase and we are always here to answer any questions you have! Foreclosure homes can be a great opportunity to save thousands and with opportunity there is always some risk. Navigated correctly and with the right guidence, these homes are well worth the effort!

Buying Foreclosures with FHA financing

Stuck wishing for the right home?


If you have an FHA loan, buying a foreclosure home can be difficult. Many foreclosure homes are not in the condition FHA would approve. So how do you get into a foreclosure home with FHA financing? It can be tricky but there are ways to do it! FHA has a program they offer call the FHA 203k rehab loan. Although this product has been around for years, not many purchasers know about it or use it when they are looking at finding the right home.

The word "rehab" probly scares most first time home buyers away to begin with! The good news is, the home doesn't have to be in horrible shape to use this loan! If you find a home you really love but the carpeting and paint need to be done-talk to your mortgage lender because this may be an option for you!

The rehab loan allows purchasers to finance many of the improvements needed on a home. There is always a limit to what can be done, this loan can be time consuming and you should work with someone who is familiar with it's process. It may help you get the home you have been dreaming of as well! Find more information at the HUD website http://www.hud.gov/buying/loans.cfm

RE/MAX WORKS ON STREAMLINING SHORT SALES

Great news to share! Go Dave and CDPE'S

--------------------------------------------------------------------------------

Secretary Donovan Meets With RE/MAX Chairman Liniger


RE/MAX Recommends Procedures to Streamline Shortsales


Denver, CO (Vocus/PRWEB ) September 10, 2009 -- RE/MAX Chairman and Co-Founder Dave Liniger met with Housing and Urban Development Secretary Shaun Donovan on Friday. They had a conversation on a variety of topics related to the current state of the real estate market, but focused primarily on recommendations for streamlining the Short Sale process.

"We feel strongly that if Short Sale transactions can become more like normal real estate transactions, we can make significant headway in reducing the number of vacant and foreclosed homes on the market," Liniger said. "Because most homeowners aren't aware that they have this option and loan servicers haven't made it a priority, we feel that the federal government should facilitate an effective national initiative."

Also present at the meeting, held in Secretary Donovan's office, were FHA Commissioner Dave Stevens and Laurie Maggiano of the Treasury Department's Chief of Homeowner Preservation Office. Accompanying Dave Liniger to Washington was RE/MAX Senior Vice President, Mike Ryan.

A Short Sale can occur when a lender allows a homeowner to sell a home for a price that is less than what is owed on the mortgage, if the homeowner is experiencing a financial difficulty that would make monthly mortgage payments a significant burden. Unfortunately, nearly 70% of homeowners facing foreclosure never list their home for sale, even though a Short Sale has many benefits over a foreclosure.

RE/MAX has made assisting such families a high priority and has undertaken a comprehensive, targeted agent training program. In March, Liniger set a goal of having 7,500 RE/MAX Sales Associates earn the Certified Distressed Property Expert (CDPE) designation by the end of the year. The actual number has already passed 7,000 and represents 62% of all CDPE agents in the United States.

Surveys show that after earning a CDPE designation, agents are twice as likely to be able to keep families in their homes. With the CDPE designation, agents are also able to cut the time in half that it takes to close a Short Sale. The average CDPE agent closes about 10 Short Sale transactions a year.

"Secretary Donovan has a very good understanding of how Short Sales can help this market, and he was certainly open to our specific recommendations, especially in the area of agent training and public awareness. We're expecting an announcement will soon be made about procedures to facilitate a streamlined Short Sale process," Liniger added.

Short Sales could be the best solution for homeowners who are facing a foreclosure, have been turned down for a loan modification, or who have lost their job and can no longer make their mortgage payments. Homeowners who find themselves in one of these difficult positions should contact a real estate professional who is specifically trained to handle Short Sales to find out how the process could result in a positive outcome. A CDPE agent is especially aware of this critical process.

A streamlined Short Sale process could benefit the entire real estate marketplace and offers a much better alternative to foreclosure. Lenders often experience greater losses taking a home to foreclosure, neighborhoods suffer greater losses in home values with foreclosed homes, which are often vacant, and homeowners sustain more severe damage to their credit as the result of foreclosure.

The real estate market will not recover until the number of foreclosures is reduced and home prices start to rebound. An efficient Short Sale process can have a significant impact on foreclosures, which remain at record high levels. RE/MAX hopes that a standardized, national Short Sale process will soon be in place to promote a lasting housing recovery.

About RE/MAX International, Inc.

RE/MAX was founded in 1973 by Dave and Gail Liniger. From a single office in Denver, Colorado, it has grown into a global network of nearly 100,000 Sales Associates in more than 70 countries, an international presence greater than any of its competitors.


RE/MAX has been honored as the leading real estate franchise for 9 of the last 10 years in the oldest and most respected ranking, "The Franchise 500 Survey," published by Entrepreneur Magazine.

Why short sales homes and pre-foreclosures take longer to buy

The question of the day!

There are several reasons short sale homes may take longer to purchase than a REO or Bank Owned property.  The REO and foreclosure property has already been through the all the stages and they are ready to be sold when they enter the market. The Short Sale home on the other hand just starts it's first satges when an offer is recieved.

With a short sale home we have more parties to bring to an agreement. Since the seller still owns the home, they are the first to review any offers that come in. Once an offer is approved by the seller and pucrchaser we then have to put together a very complete package of information to send to the sellers bank for approval.

Many times the package alone can take 24-48 hours to be ready to submit. Once that information is submitted and as long as nothing has been missed, the sellers bank will take another 48 hrs to upload it into their systems and be ready to communicate with the agents. With that said-there goes week one. And we find time and again that we run into loss mitigation departments where we have to fax the information 2-3 times before they acknowledge reciept.

Once the short sale information is recieved by the owners bank, the file is passed through many phases prior to offer approval. Some companies manage to get these files through the stages within weeks and others take over 60 days. One of the stages toward approval is a BPO and Appraisal order on the home. I have found that once we hit this point, we are usually getting closer to an approval on the purchasers offer or a counter offer.

Many weeks and/or months can pass while the banks moves the file toward approval and or a counter offer. Some of the banks we have worked with are improving the time frames while other lag behind.
Great article on this in the Washington Post talking about how some of the banks have also laged behind on their Loan Modifications for home owners

http://www.washingtonpost.com/wp-dyn/content/article/2009/08/04/AR2009080401134.html

Short Sales are well worth the effort to buy and wait for. They are also a benefit to the seller in default who is saved from havng a foreclosure on their credit!  

Short Sales- Are they worth the wait?

HE LOOKS FRUSTRATED DOESN'T HE?


As more short sales enter the market, buyers should prepare ahead of time for a long process! On the bright side, the short sale properties we have closed on recently have been a great buy for our clients and also a relief to the seller!

Home buyers need to plan in advance to be patient if they choose to go through this type of purchase. I have noticed time and again, as we start the process the purchaser is really excited about the great deal they are getting on the home but sometimes we lose that excitement when the offer on this type of property takes a long time to approve and sometimes a long time to close. Very understandable! Just try to remember that anything you invest in, that is truly worth the time and trouble, is not always easy!

Some of the most recent issues we have noticed that you may want to prepare for are.

1. Both seller and bank approve your offer but right before close, the MI or PMI company wants to approve the amount or have the seller sign a promisary note as well. This can cause delays.

2. The bank has approved your sale and liens are attached at the last minute. This can be resolved, expect delays.

3. Too much time has passed and your interest rate lock has expired-prepare for this ahead of time with your lender.

These are only a few of the many problems that can arise in this type of purchase. I highly recomend my clients use an attorney along with a Certified Distressed Property Expert (CDPE) to navigate through this type of sale. Don't plan on a closing date or order your moving truck until you have officialy closed on the short sale home. Be prepared for possible last minute issues.

In the end-are they worth the wait, the time, and the effort? Absolutely, if you are looking to save thousands! Just keep your eye on the final goal and you can achieve great results!

First Time Home Buyer Tax Credit-Crunch Time!

Many first time home buyers are aware of the tax credit of up $8000 available to them. If you haven't heard about this great program you can check it out here!  http://www.federalhousingtaxcredit.com/2009/index.html 

It seems like we still have plenty of time to take advantage of this credit but we really don't! Now that we are into Sept. home buyers should try to find the home they want soon or they may lose out on this opportuntity! Most homes take a minimun of 30 days to close and we are finding out on a daily basis, they are taking 45-60 days for some loans.


If you have been considering a short sale or distressed property purchase and you want to take advantage of the credit, you may want to talk to your agent about the time line on these sales. Many short sale homes are taking anywhere from 30 days to 3 months just to get approval so this may not be the best option if you are trying to take advantage of the tax credit.

Now is the time to get busy! Good luck with your search and feel free to contact us if we can help!

Short Sale Homes-What are they, how do I find them, and what is the process?

What is a short sale?

There is a lot of misconception I am finding about short sale homes. A short sale (also called pre-foreclosure) can happen when a homeowner is unable to keep up with their current mortgage due to some type of financial distress. Distress can happen to many homeowners due to job loss, divorce, death, relocation, rising interest rate on their loan, etc. A short sale is where the bank agrees to allow the homeowner to sell their property for less than the current mortgage amount due.

A short sale is not just simply "We owe more on our home than the market will allow" A true short sale must involve a good reason for the current mortgage company to take a loss.

Finding short sale homes can take a lot of research and many homeowners are not even aware the option to sell prior to foreclosure is available. A Realtor can help you navigate through the process of finding and purchasing this type of home and most of mortgage companies require sellers to involve a Realtor in the process as well. If you are considering this type of purchase or considering selling your home as a short sale, you may want to contact an attorney and also make sure your agent has extensive knowledge and training in the short sale process.

Purchasers should be aware up front that buying a short sale home can be a longer process. It can take anywhere from 2 weeks to 3 months to get a short sale offer approved so the purchaser definitely needs to have time to wait for this process to take place. Short Sale homes may not be your best option if you need to move in 60 days or less.

There is good news though! If you are a seller in a short sale situation-your credit won't be affected as badly as it is by a foreclosure. If you are a purchaser and you have time to navigate through the short sale process-you will get a really good buy!

There is more information on how short sales work to be found at my website

http://www.perrysburg-homes.com/

Time For Some Summer Fun and Planning!

We get closer and closer to summer and I am still pondering what to do for fun this summer! Since most of us plan for our kids first, then the sports, then the camps, etc. I am looking through the summer schedule and thinking time is pretty tight- What about a mom and dad trip? Shouldn't we try to fit in a whole family trip too? It can be pretty tricky but I had fun figuring it out too! I looked around a bit and found some neat places to go that are close to the Toledo area. Since Real Estate is incredibly busy right now, we only take a few days at a time and traveling far away just isn't in the plan at the moment.

I hope you enjoy the following links and travel ideas as much as I did!

If the other ideas we found don't help you this website offers a lot of great ideas. I always find something new to do! There are so many great ideas in this website, good luck!

http://consumer.discoverohio.com/

Mohican State park and Loudonville Ohio 1 hour and 30 minutes SE of Toledo
Amish Country, hiking, horse backing riding, canoeing, camping and shopping. What a great get a way weekend or week for your family and friends. The State Park has a great lodge to stay at or there are many camp grounds to play and stay at.
Loudonville, Ohio

http://www.loudonville-mohican.com/

Pokagon State Park Indiana 1 hour and 30 minutes west of Toledo
Shopping, Potawatomi Inn, horse back riding, boat rides, hiking toboggan run.
I took my son Justin there not to long ago and had a great weekend. We rode horses, drove go carts, and just relaxed and spent great quality time together.
Angola, In

http://www.in.gov/dnr/parklake/inns/potawatomi/

Marblehead is a great fun get a way either for a day or a weekend. You can go and travel to the islands, visit a State Park or Cedar Point is always near by, with a lot of other activities near and around Sandusky Ohio.

The Marblehead Lighthouse Tour
1 hour and half hours east of Toledo
Monsoon Lagoon Water park, Wolcott House, Marblehead State park, Kelley’s Island, African Safari Wildlife Park
Marblehead, Ohio

http://www.marbleheadpeninsula.com/

Hocking Hills

A great place to just get away, with no cell phones. Cabins, hotels, State Parks, shopping, nature and scenery. My Husband and I really like to go and rent a cabin and relax. Last summer we did a last minute trip to Hocking Hills and what a great weekend we had. I highly recommend it!

3 and half hours south east of Toledo

http://www.hockinghills.com/

Kings Island

Kings Island! Do we really need to say anymore? Hotels, and other fun activities in and around Kings Island. I like this park a lot for the smaller kids than Cedar Point.

http://www.visitkingsisland.com/#actions

Geauga Lake’s Wildwater Kingdom. I have not been there in several years, but my kids really liked this area when they were younger lads.

http://www.wildwaterfun.com/


Rock and Roll Hall of Fame

Cleveland is always a great time a lot of things to do down near the flats. I really like visiting the rock and roll hall of fame. Great memories back to my teenage years!

http://www.rockhall.com/

Football Hall of Fame

A sports fan must trip. There are other things to do while your in the area! Check it out and see what you think?

http://www.profootballhofef.com/


COSI Columbus, A great day to explore and be a kid again. COSI has things for kids of all ages. While in Columbus there is always visiting a great restaurant, or museum, or a sporting event! We have friends and family in Columbus it is always a good getaway.

http://www.cosi.org/

Just north of the border with in hours of Toledo there are a lot of fun places to travel too. Whether you like being on the water or camping, or maybe a museum, sporting activities, shopping, skiing and winter sports. Then Michigan has a lot to do. Such beautiful country!

Here is a useful website to check out our friends just north of us.

http://www.michigan.org/

One of our family fun get a ways for the day is the Henry Ford Museum and Greenfield Village.

http://www.thehenryford.org/

Mackinac Island gives you the best of all worlds a great travel destination of all incomes and desires. It’s a bit of a drive! But well worth the trip! You’ll see what we mean.

http://www.mackinacisland.org/

If Mackinac is too far to travel then you might want to consider going to Ludington, Michigan. What a great place for the family or a couple looking for a romantic get a way, or maybe a group of friends just want to hang out and have fun on or near the water. The State parks are great. They offer camping and hiking, or just playing on the sand dunes. The dunes are a must see along with the light houses in the area.

Check out this website it may give you some other ideas,

http://www.ludingtoncvb.com/


Of Course you always have the big cities within three of four hours to go and party, check out great museums or just have a great dinner and relax and gamble a little or a lot. It all depends on you!

Detroit, Mi
Columbus, Oh
Cleveland, Oh
Cincinnati, Oh
Chicago, IL
Indianapolis, In
Toronto, Ont Canada

Each of these cities have great websites of fun things to do, most have professional Football, Baseball, Basketball, Hockey and or Soccer for other ideas.

We have planned our small weekend getaways for the summer-I hope you enjoy yours as well!!

Can I buy a foreclosure with FHA financing?

IS THIS HOUSE A DOG OR NOT?

I found the same confusion today talking to clients about FHA Homes and Mortgages!

I have a great question for you?

I am a first time home buyer-What type of home can I buy with FHA financing and can I buy a foreclosure home with FHA financing?

http://www.hud.gov/local/oh/news/fhaincentives.cfm

The best answer I have is-well, "maybe" and "that depends"

As a buyer, It truly depends on the type of repairs needed in the home, the type of financing you qualify for, and the home you are interested in.

If you are a buyer, the best step to take first is a pre-approval . The lender can guide you through the process of what type of property you qualify for and what options you have regarding foreclosure homes and what condition the home needs to be in as well.

I am a seller and I am not sure if I want to consider an FHA offer?

If you are a seller, don't be put off by the offer coming from the FHA buyer-times have changed and financing has changed with it!. Many of the first time home buyers in today's market are using an FHA product so be prepared to sell your home to any qualified buyer. Look at your bottom line-if you are happy with it, you may want to consider the offer.

What shape does the home need to be in to qualify for an FHA mortgage?

I have heard all types of discussion on this. Since we sell foreclosures on a weekly basis to FHA buyers, my answer to this question is always -well- "it depends and maybe!" There are foreclosures out there for FHA buyers. It just depends on the condition of the home, the loan you are qualified for, and the efforts of the professionals you are working with.

The lender makes the final determination according to what is marked on the appraisal. There are several guidelines outlined by HUD and other FHA websites where both buyers and sellers can get an idea of what to watch out for/repair prior to selling.

BIG TIP!! First time home Buyers may want to look into the FHA 203k program, USDA, and OFHA for lower down payment options and improvement options.

http://www.realtytrac.com/foreclosure/how-to-buy-foreclosures.html

Great information can also be found on Realty Trac

"Options are always possible, they just take more work and thought than the obvious!"

Should I sell my home right now?

If you are thinking about moving into a larger home for your family- then it could be a big yes-now is the time!

Why wouldn't you take advantage of purchasing a larger home at the current pricing with incredible interest rates?

Then I hear it-"But I will lose money on my current home in this market too"

Yes, you might not make as much as you would like on the current home. Many sellers are even bringing money to the table to get it done-all of that is true.

Let's take a minute to look at the big picture though.

Let's say your current home is in great shape-it is just too small for your family. You need to move to be comfortable into a larger home. You bought your home for 200k in 2005 and it is now worth 190k or less due to the drop in our market. The right buyer comes along and gives you 185k for your home so there is a 15k "loss" plus marketing fees and closing costs.

Most homeowners would think "Why would I want to do that?" sounds crazy so far doesn't it? "I think I will just stay put until the market changes." You will be there awhile!

Well let's think about this?

What if the larger homes you find yourself wishing for are currently priced 20-30% or more less than their value in a normal market? You are probly planning on staying the larger home for quite a few years. If you think about it in the long term, didn't we just make a profit?

You might notice the BOLD print on your current home being in great shape-it qualifies for an FHA buyer-that is what we are selling in this market. More on FHA Qualified home in my next post!

It is a great time to buy! Don't miss it!

Help us get the word out-stop foreclosures in Toledo!

It is still shocking to see how many homes are still going into default in Toledo! Especially with all the information and help available today! Realty Trac is showing an amazing number in Toledo-there are over 5000 homes in distress and foreclosure. Help us reach out to these homeowners and let them know there is help out there for them-they just need to know where to look and what to do.

One of my former clients has had great success with a local organization that is helping homeowners renegotiate with their current mortgage company. This client was able to save on their monthly payment and keep their home! You can find the information from a WTOL story at http://www.wtol.com/global/story.asp?S=9464967

Additional information is also available at my website http://www.perrysburg-homes.com