Survey: Households Say Now Good Time to Buy

More than three-quarters (78 percent) of potential first-time home buyers say that now is a good time to buy a home, despite widespread concern about the economy.

Out of the 1,000 prospective U.S. first-time home buyers surveyed in early March for the CENTURY 21 First-Time Home Buyer Survey, 68 percent think now is a better time to buy than six months ago.

Prices are the driving motivation for potential first-time home buyers with more than eight of ten first-time home buyers (85 percent) saying they consider current home prices affordable and 73 percent citing that taking advantage of current prices is a major factor in their decision to buy.

Interestingly, potential first-time buyers are still split between “being willing to consider an offer now” (42 percent) and “waiting for prices to go down before they seriously consider making a purchase” (48 percent).

“Current pricing, rates and incentives, such as the First Time Homebuyer Tax Credit, provide tremendous opportunities for first-time home buyers to get into the market,” said Tom Kunz, Century 21 Real Estate president and CEO. “Our research shows that while consumers still have concerns about the future of the economy, many are actively considering their options as we move into the spring selling season.”

Among the survey’s other key findings:

  • Bargains in the marketplace are providing additional options for buyers to consider. 56 percent of potential first-time home buyers are considering purchasing a foreclosed or short sale home, and 63 percent are open to purchasing either a “fixer-upper” or “as-is” home.

  • When asked to rate the features that they look for when choosing a home, price is the primary consideration with 87 percent saying this feature is “very important,” followed closely by neighborhood safety (80 percent) and the condition of the home (71 percent)
  • Having enough money for a down payment is a top concern of potential first-time home buyers as nearly half (46 percent) said they are “very worried” about the issue.
  • Most respondents (86 percent) are in the market for single family homes.

Source: Century 21

How Will Foreclosure Effect Credit Scores?

The amount of damage to a credit score caused by foreclosure, deed in lieu or a short sale during 2008 and 2009 may be mitigated by the slower economic times, say some credit and legal experts.

FICO may have to adjust its credit scores to lessen the impact of a foreclosure in the last two years, says Todd J. Zywicki, a professor of law at George Mason University.

”It just seems obvious that a foreclosure in 2008 or 2009 doesn’t have as much information value as a foreclosure five years ago,” he says. ”To the extent that foreclosure doesn’t predict future behavior as much as it did in the past, you’d expect that the FICO algorithm would change to adjust for that.”

One of the country’s largest credit unions Golden 1 has already figured out a way to lend to people with a foreclosure on their record by offering a mortgage repair loan specifically for those who have lost a home to foreclosure and who want to buy a new one.

BECU, another large credit union based in Washington State, is about to present a program to fellow lenders, ”How to Lend to the Newly Credit Impaired.”

Source: The New York Times, Ron Lieber (03/14/2009)

1329 Greenwich St SW Atlanta (Historic West End)

Short Sale approved! Bank waiting for offers on this 4bedroom 2.5 bath Bungalow. -List price 69.9K

This home was fully renovated and needs nothing but clean-up. Daylight exterior  leveled back  basement entrance, with 1bedroom and half bath.  The home has many original details-French doors, Hardwoods,Fireplace, Built-in bookcase…

greenwich

Allow me the opportunity to help you with a Short-Sale…

Unfortuntly another friend has lost their home due to foreclosure.  I wish I would have known they were going  through this… I would have wanted to help with either assisting them obtain a Loan modification or via Short-Sale..

If you are facing Foreclosure- please allow me the opportunity to help you.  Email or call anytime: niaknowsrealty@yahoo.com and let’s begin the process and discuss your options. There is no cost to you for my services- my commission is earned AFTER the sale of your home and paid by the bank.  I work with a Real Estate attorney to give you the best possible service.

What’s a Short-Sale?

A short sale occurs when a property is sold and the lender agrees to accept a discounted payoff, meaning the lender will release the lien that is secured to the property upon receipt of less money than is actually owed.

Examples: If the unpaid balance of a loan is, say, $100,000 and a property sells for $90,000, under a short sale the lender might accept $90,000 as payment in full.

Fannie/Freddie-Ban on Foreclosures!!

Freddie Mac and Fannie Mae Announce Ban on Foreclosures Until Jan. 2009

Mortgage finance giants Fannie Mae and Freddie Mac revealed Thursday afternoon they will work to keep Americans in their homes, announcing a suspension on foreclosures starting Nov. 26, 2008 until Jan. 9, 2009.

The two companies said no evictions will take place during that time period.

Furthermore, they instructed loan servicers and attorneys working for them to suspend foreclosure sales of single-family homes.

The release on Fannie Mae’s website said, “The temporary suspension of foreclosures is designed to allow affected borrowers facing foreclosure to retain their homes.”

The release from Freddie Mac had a similar reasoning: “The temporary suspension is also expected to give servicers more time to help borrowers avoid foreclosure.”

By Megan Ainscow and edited by Sarah Sussman

* This seems like a very short period of time for them to actually be effective. Seems like a bit of holiday relief -I guess they do have a conscience..however those facing foreclosure- we NEED to do all we can in this time to stop it, readjust mortgage plan, or fight for a short sale approval.