Foreclosures are viewed as homes that the bank is in the process of taking back from homeowners. Reposessions are homes that are already taken back by the bank.

Banks are trying to get rid of what the inventory they currently have on their books. They are less motivated to take on more homes, as it will only serve to further deteriorate the market.

The majority of banks are working to work out short sales, to reduce potential repo inventory. There are more homes in peril than banks and government officials want to acknowledge.

More homes on the market is not a path to neighborhood stabilization.

As a pricing specialist, I tend to be very direct with my sellers.

I have a very agressive, comprehensive marketing plan to help my sellers get their homes under contract as fast as the market will allow.

At each listing consultation appointment, I discuss market trends, recent neighborhood sales, and the nearby homes currently on the market.

My job is to assist my sellers in determining the best possible price to list their home to sell within the 1st 30 days, as well as keep them informed regarding the sellers they are competing against.

Buyers have a wealth of information available, and easy access to view the thousands of homes currently available on the market.

 They are well informed, and can spot a good deal when one presents itself.

Homes priced properly attract a lot of showings very quickly.

Over priced homes get very little activity, and will likely expire unsold after a 6 month listing contract.

In January 2010 , many home owners “resolved” to sell their homes this year.

Many priced their homes too high, and those listings will expire in July.

Those that choose to put their homes back on the market will likely reduce their prices in a more aggressive approach to selling their homes.

I have advised my sellers my opinion that in these final days of June they should be aggressive to get ahead ahead of the curve.

For many, there are certain tax advantages for capital gains, and estate taxes that are expiring at the end of 2010.

For the small group of home owners that are considering an increase in their listing price, I wish them luck, but feel they are wasting their time.

For these reasons, I believe that its a great time to sell.

Waiting may very well make a bad situation worse.

See www.TeamWorksFLA.com

My other web sites are:

www.scott-morris.com

www.scottsflahomes.com

http://scott-morris.mfr.mlxchange.com/

My newest listing is a great investment opportunity in a nice neighborhood. The bank is selling it ‘AS IS’ so the price is reduced, making it very competetive in today’s market. See http://mfr.mlxchange.com/Pub/EmailView.asp?r=1856783825&s=MFR&t=MFR

This market is active and inventories are dropping. It is still a great time to buy.

In a speech Thursday, Fed Governor Daniel Tarullo said, “The relatively modest pace of recovery, the continued high rate of unemployment, subdued inflation trends, and well-anchored inflation expectations together suggest that the need for highly accommodative monetary policies will not diminish soon.”

Likewise, Donald Kohn, Fed vice chairman in a speech in San Francisco, said the Fed would raise rates, “in due course,” but he also noted that low rates “help offset the lingering restraining effects on economic activity and prices.”

So far, rates have risen modestly, but analysts speculate they will likely become much more volatile down the road.

“It’s an uncertain type of market,” says Keith Gumbinger of HSH.com.

Michael Fratantoni, vice president of research and economics for the Mortgage Bankers Association, predicts that the Fed will have created a situation where there are days or weeks of low-rate opportunities, and other days and weeks when rates rise significantly.

Sources: The Wall Street Journal, Nick Timiraos (04/08/2010), and The Wall Street Journal, Jon Hilsenrath (04/09/2010)

The Home Affordable Foreclosure Alternatives (HAFA) program gives $3,000 to borrowers for relocation assistance, $1,500 to servicers for administrative and processing costs, and up to $2,000 to investors who allow up to $6,000 in short sale proceeds to be distributed to subordinate lien holders. The program was created to help stabilize distressed inventory such as underwater homes.

Some lenders have already adopted HAFA rules, but April 5 was the deadline for participating servicers to implement HAFA. The program reportedly covers servicers handling more than 90 percent of all mortgages.

However, the National Association of Realtors (NAR) says that it’s already hearing complaints from members. Many servicers say they haven’t even heard about the program, Realtors claim, so it’s clear that they won’t “hit the ground running.”

NAR says it will carefully monitor HAFA implementation and report delays and other program problems to the Treasury Department. However, “patience will be needed.” Realtors can negotiate faster short sales by urging lenders to comply with the new procedures and deadlines.

NAR offers a webpage with information on how HAFA works at: www.realtor.org/shortsales.

NAR also offers other short-sale info (including links to a 45 minute Webinar and a 15 minute video on a separate webpage: http://www.realtor.org/realtors/basics_short_sales?wt.mc_id=rd0041.  

NAR also produced a four-page HAFA informational brochure.

U.S. Treasury Department guidelines and forms (updated March 26, 2010):
https://www.hmpadmin.com/portal/programs/foreclosure_alternatives.html.

When we moved here we were attracted by the climate, the opportunity for boating and of course the beaches. This area of Southwest Florida offers world class fishing, onshore and offshore. In late spring the world’s biggest contest for tarpon is held in Boca Pass on the south end of nearby Boca Grande Island. In addition the deep sea fishing is the best on the Gulf coast. In our opinion, Englewood Florida is Florida’s best kept secret.

Enjoy our area and take advantage of the low prices now being offered for all types of Foreclosures in Englewood Florida. Visit my web site at www.scott-morris.com and search for your dream vacation home or call me at 941-525-6967.

This slight glimmer of positive news is offset by estimates that about 48 percent of all U.S. mortgages will be underwater by 2011. Foreclosures and short sales continue to plague the market, keeping a lid on home prices. As a result, 2010 will continue to be a buyer’s market.

That doesn’t mean, however, that all hope is lost of selling your home this year. Here are nine tips to sell your home in 2010.

1. Don’t wait for a recovery – Home values aren’t likely to rebound to previous highs for several years, perhaps even a decade. While you may face a loss by selling now, that negative figure may only be a paper loss, particularly if you’ve owned your home for some time.

2. Make improvements – If you have access to credit, invest in improving and repairing your home before placing it on the market, rather than trying to go for a quick as-is sale. Rehabs are more affordable now, thanks to the availability of low financing, reduced construction materials costs and lower contractor charges. Focus on upgrades to kitchens and bathrooms, especially counters and cabinets, as these yield the highest returns. Get three different estimates from contractors and add another 10 percent for unexpected costs.

4. Hire professionals – You need professionals, not friends or relatives, to repair, upgrade and sell the biggest investment you’ll likely own. Ask for credentials, references and a history of recent performance. Your appraiser should have at least five years experience with an appropriate license or certification. The same applies to hiring a home inspector. Talk to at least two or three appraisers and inspectors before selecting one.

5. Get down payment assistance – Federal and local governments offer several down payment assistance programs for first-time home buyers. Look for other city, county and state programs that will piggyback on federal programs for assistance. Search for “down payment assistance programs” with the name of your region.

6. Take Uncle Sam’s help – The $8,000 first-time homebuyer tax credit program that helped jump-start the real estate market in 2009 has been extended into 2010 and expanded. First-time homebuyers qualify if they sign a binding contract to buy a home by April 30 and close by June 30. The program’s maximum income limits have jumped from $75,000 to $125,000 for individuals and from $150,000 to $225,000 for couples.

A separate $6,500 tax credit has been added for those who have owned their homes for at least five years and want to upgrade. Homeowners drowning in their present real estate loans are eligible for a loan-modification program with their current mortgage company or loan service through the Making Home Affordable Program (http://makinghomeaffordable.gov/).

7. Price accordingly – Listings move when a property is appropriately priced. Others gather dust because the owners haven’t adjusted their expectations to the present market. This doesn’t mean, however, you should severely drop your price on a well-maintained home to avoid extended problems. Research your market and price accordingly.

8. Energy tax credits – Through Dec. 31, homeowners who buy and install specific energy-efficient windows, insulation, roofs, doors and heating and air-conditioning equipment can apply for a 30-percent tax credit of up to $1,500 of their costs on each product.

Go one step further and earn a 30-percent tax credit through 2016 (without a spending limit) when you purchase such energy-saving products as solar energy systems, geothermal heat pumps, small wind systems, residential fuel cells and micro-turbine systems. Visit EnergyStar’s Federal Tax Credits for Energy Efficiency (http://www.energystar.gov/index.cfm?ctax-credits.tx-index) for a complete summary.

9. It’s not personal – Buyers want to imagine themselves in your house for years to come. Excess decor and knick-knacks distract from this vision. Ask your Realtor’s advice or hire a home stager to bring your house back to zero before beginning to show it. A general rule of thumb is to eliminate or store at least half the items in every room.

Don’t get defensive about colors, design patterns or flooring you installed. Just grit your teeth and think of the closing check while your agent serves as a buffer. Remember the customer is always right, unless, of course, they’re low-balling you.

Consider that a solid credit score of 700 could get a homebuyer a 5.99-percent interest rate when applying for a mortgage. Let that score drop one point to 699, however, and the buyer may get stuck with a rate a full ¼% higher, adding substantially to the payment and the interest paid over the life of the loan. Avoid the following seven mistakes to have a credit rating loan officers will find irresistible.

1. Missing payments  – It’s just common sense that missing payments is going to damage your credit rating. Three factors, however, figure into the impact on your credit report: The frequency with which you made late payments; how recently you made a late payment; and the severity of your late payments. Even if you’ve gotten far behind in payments, it’s in your best interest to bring them up to date as quickly as possible, or at least make regular, good-faith payments towards the total owed.

2. Closing credit card accounts  – The reason you close out an account is irrelevant to lenders. Closing out one account can damage a  credit rating because the positive history of many years of regular payments will be lost. An open account counts towards a good score, particularly if you keep the account active by using the card every few months and paying the balance off the following month.

3. Maxing out cards  – A spending spree can damage your credit score because the ratio of debt to available credit accounts for one-third of your score. Optimally, you want to maintain a balance of around 10 percent of your available credit and never owe more than 30 percent. An even better option is to pay your balance down before the statement cycle ends.

4. Holding too many cards  – It can be tempting when a cashier offers 20 percent off a purchase if you apply for a store credit card, but that’s a bad idea. Holding too many store cards is even more detrimental to your credit score than having too many bank cards. Opening just one card can temporarily drop your score by several points. The effect is exponential with each card you add. Lenders like to see a mix of credit, such as cards, mortgage, car loans, etc.

5. Settling with lenders  – Settling means the lender has accepted less than the amount you owe on an account. This may seem like a good idea but the lender still reports the remaining amount to credit bureaus as a deficiency balance, which is considered a negative. If you must settle with a lender, try and arrange a deal so they won’t report the deficiency balance.

6. Not understanding your rights  – The Fair Credit Reporting Act governs lenders and credit-reporting agencies. Learn your rights under the FCRA and make sure lenders follow them. Most importantly, you have the right to a free copy of all three credit reports (Equifax, Experian and TransUnion) either annually or each time a negative item is placed on your report. Make sure you request copies from AnnualCreditReport.com and not a Web site that tries to lure you in with a cute musician. AnnualCreditReport.com is the only non-profit agency providing reports and they will not try to sell you other products.

7. Misunderstanding introductory rates  – Introductory rates are designed to draw you into charging up a card before the loaning agency increases the interest, leaving you paying more in interest than you are in actual debt. It’s not unusual for a card’s interest rate to go from 0 percent to 18 or 20 percent after the introductory period expires.

Short sales allow the distressed homeowner to repay the mortgage at the price that the home sells for, even if it is lower than what is owed on the property. With plummeting property values, this can save many people from foreclosure and even bankruptcy. More and more lenders are willing to consider short sales because they are much less costly than foreclosures.

Today, more than 13 percent of homeowners are delinquent on their mortgage or in the foreclosure process. This is occurring across all price ranges, and the fastest-growing category of homes in foreclosure is the luxury home market.

I have also recently taken the NAR (National Association of Realtors) SFR certification course. Contact me if you need to discuss your options. Avoiding foreclosure is possible and you may be able to keep your home. Make me your Realtor of choice and I can share my wealth of information.