Beltran Properties

the informedhomeowner May 2011

Welcome back! There has been a lot happening in the industry. We had a lull in foreclosure listing, but now the banks are gearing up again. There has been several class action suits resulting from poorly performed foreclosures, and so the foreclosure process has been cleaned up.

For the market, we have good news. The housing market is still active for investors and certian home buyers, and home values are stable and rising in some markets. There is still a lot of invintory at very reasonable prices. It appears that most buyers are going for the REO property over a comparably priced owner/seller sale. You still need to know that the REO property is sold as-is! There are many issues to address in a vacant bank owned home. They are not responsible for as many disclosures as the owner/seller, therefor ther could be many latent issues. Always remember to get it inspected, or do a thorough inspection as much as possible.

For the buyer, credit is still tight. My team mortgage broker indicates that you need a score of at least 640. If you are near to that, there are a few things that can be done to quickly bring it to the necessary number. And always remember to have savings and cash reserves. The lenders will be extreemly concerned if there is none. Theer is still FHA loans with around 5% down, but remember, there will be mortgage insurance added on until you are at a 20% equity position, and certian homes will not qualify for a FHA loan.

For the seller, there are still offers and contracts if the property is priced right. You need to make your home stand out in this buyers market, and be patient.

We are not reaping the fantastic gains of prior markets, but at least the market is recovering. If the federal government would give those credit incentives again, we would see more sales. But they are "broke", maybe they will offer them again in the election year.