Archive for November, 2011

Private Financing Option for Short Sale or Foreclosure

By: Maria Hass
I’ve received many calls from clients and their friends asking about the possibility of owning a home after a short sale or foreclosure. Below, I have outlined below the average waiting periods for a short sale, foreclosure and bankruptcy. Every situation is different, so consult with a knowledgeable lender if you would like to know what it takes to get into a home sooner.
1. Short sale – Anywhere from two to three years from the time title was transferred to the new owner.
2. Foreclosure – Anywhere from two to seven years from the time the home was transferred to the new owner, whether the home was returned to the bank or a third party bought it at the auction.
3. Bankruptcy – At least two years from discharge.

Note: Waiting periods vary depending on your reason for default, your current credit score, the down payment on the new home, your income, the type of loan and most important, the lender you select to do your new loan. Sometimes, one lender maybe able to approve you for a loan while another will not. To better prepare you in buying your next home after foreclosure, short sale or bankruptcy, it is a good idea to connect with a credit repair consultant and find out what it takes to improve your credit sooner. If you would rather get in a home sooner than the typical waiting period, you may look into “private financing.” Lenders who loan money this way do not have a “waiting period” like the big lenders do (Wells Fargo, Chase, Bank of America, etc.). Private lenders require at least 30 percent down payment and the interest rate is higher, at 11 percent or more. But you can close the transaction in two weeks. There is no prepayment penalty in most private financing, so you can pay off the loan sooner or refinance later with a regular government-regulated bank at a lower rate once your waiting period is over.

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November 30, 2011 at 7:58 am 1 comment

Why is Today’s Real Estate Market a Good Investment?

by Maria Hass

1. Low Prices – Home values have declined 45% to 85% from their heights. Most homes are selling for the price it sold in 2001 or prior. Arizona homes are on “clearance.” Some homes can cost less than a car. In the Queen Creek, Maricopa, West Valley and other areas developed during the real estate hype, newer houses are selling for $100,000 or less.
2. Low Interest Rates – Mortgage interest rates are down to an incredible mid-4% or better. House payments easily could be as low as car payments.
3. Special Loan Programs – 100% loan with zero down are available with the VA program for military members. Also the USDA program offers zero financing if the property is located in an assigned remote area. Restrictions apply; check with your local lender for details.
4. Rental Market is Strong – The rental market has appreciated 10-15% in the last six months. The rise in rental demand was fueled by homeowners who left their homes due to foreclosure or short sale. Many homeowners are not in a position to buy a home due to credit issue. Their best option is to rent a single family home and retain a lifestyle they are comfortable with. Location, nice neighborhood are key to finding a good rental. It is not a good idea to purchase a rental home base on the price alone.
5. Fix and Flip – Investors are cashing out on Fix and Flip projects. To become successful, one has to know the before and after value of the home to be flipped. Having a working knowledge on remodeling homes could save you time and money. Lastly, have adequate reserves to cover repair, maintenance, sale and miscellaneous cost. Certain areas do better with fix and flips and other others are better to hold and rent. Know the area well prior to purchasing a home to flip.

*** There are numerous reasons why investing in today’s market makes sense, as evidenced by investors dominating the homes sales. They know that the market offers opportunities for wealth and growth.

November 7, 2011 at 11:55 am Leave a comment


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