Real Estate Opportunities

By Brian S. Icenhower

 Attempts by Federal and State governments in the first quarter of 2009 to stimulate home sales have resulted in the creation of significant incentives for buyers seeking to take advantage of attractive housing prices across the United States. In order to reduce the large inventories of available homes for sale and thereby stabilize housing values that serve as security for loans held by financial institutions and investors around the world, an irresistible environment for real estate investment has been established that deserves closer examination.

American Recovery and Reinvestment Act of 2009

Included in what has become otherwise known as the Federal Economic Stimulus Plan, the United States federal government increased the first-time home buyer tax credit previously implemented by The Housing & Economic Recovery Act of 2008 (Summer 2008) from $7,500 to $8,000, and removed the requirement that the credit be paid back in the future. The expiration date for receipt of the credit has also been extended from July 1, 2008 to Dec. 1, 2009. Consequently, homebuyers must have purchased a home after January 1, 2009 and before December 1, 2009 to be eligible for the $8,000 credit. This credit only applies to first-time home buyers purchasing owner-occupied homes and not investment properties.

State Tax Incentives

Many state governments are also independently attempting to address housing market distress within their own state lines by enacting legislation that provides further tax incentives for prospective home buyers. For example, the California state legislature passed a new-home buyer tax incentive as a portion of the states 2009-2010 budget. According to this incentive, purchasers of new single-family homes, that have never been previously occupied, as their principal residence between March 1, 2009 and March 1, 2010 will receive a tax credit equal to the lower of 5% of the purchase price or $10,000. Therefore, first-time home buyers in California who purchase a new home as their single family residence between March 1, 2009 and December 1, 2009 should qualify for both the Federal $8,000 tax credit and the State of California $10,000 tax credit at the same time, resulting in a combined $18,000 tax savings.

FNMA Lending Requirements Relaxed for Investors

Federal government sponsored enterprises have also reached out to real estate investors by providing them with increased ability to leverage funds and purchase more investment properties. Fannie Mae (FNMA) has announced that on March 1, 2009 it will increase the maximum number of permissible financed properties from 4 home loans to 10 home loans for borrowers seeking to purchase non-owner occupied properties. Investors attempting to take advantage of this policy revision must: have a 720 FICO score or higher, show funds in reserve to cover six months of future payments, pay a 25% down payment, have no history of foreclosure or bankruptcy, have no delinquent payments within twelve months, and provide full documentation of all rental income.

Time will only tell as to whether these bold incentives will serve to generate the requisite number of home sales to effectively stabilize housing prices and the economy as a whole. Regardless of whether these enticements will succeed on a macro-economic level, the cumulative effect of astonishing low housing prices and interest rates combined with these new measures has clearly created a housing market ripe for prospective buyers.

Brian S. Icenhower, Esq., BS, JD, CRB, CRS, ABR, a California Association of Realtors Director, practicing real estate attorney, a real estate expert witness and litigation consultant, a prosecution consultant of Tulare County District Attorney Real Estate Fraud. He may be contacted at bicenhower@icenhowerrealestate.com, or www.icenhowerrealestate.com

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By Lawrence Roberts

 When a borrower cannot repay a loan, the lender may or may not be able to sue the borrower to collect any shortfall. The key difference is whether or not the loan is classified as a recourse loan or a non-recourse loan. A non-recourse loan does not need to be repaid, a recourse loan may need to be repaid if the lender goes through a judicial foreclosure and obtains a judgment.

Many would-be sellers failed to sell their homes at inflated bubble prices. This might not have been a financial burden depending on how they managed their mortgage debt. They may have regretted missing the windfall they could have received by selling at the peak, but they stayed comfortably in their homes and forgot about the excitement of the real estate bubble.

The sellers who missed the peak sales prices and fell underwater on their mortgage faced more difficult choices. Many borrowers concluded a foreclosure was the best course of action because they owed more on their loan than their property was worth. Also, due to the exotic loan terms utilized by many borrowers, they were experiencing increasing loan payments and decreasing property values. With the prospect for recovery bleak, many decided to give up paying their mortgages and allowed the lender to foreclose. One can argue the morality of this decision, but financially, it was the best course of action given the conditions. Once people had given up on paying back their loans, they faced the issue of whether or not these were recourse or non-recourse loans.

Loans used to purchase real estate assets can be either recourse loans or non-recourse loans. A recourse loan is one where the lender can sue the borrower for any amount owed in the terms of the loan contract. As with foreclosure laws, whether a loan is recourse or non-recourse varies from state to state. In California, all purchase money mortgages are non-recourse loans.

In most states, including California, all refinances, home equity lines of credit or other loans not used to purchase the property will be recourse loans. This distinction becomes very important in a foreclosure or short sale. If a loan is non-recourse, the lender cannot collect from the borrower for deficiency under any circumstances. The sale and closing of the property is the end of the matter: the debt does not survive. If the loan is a recourse loan the lender may have the right under certain circumstances to go after the borrowers assets after a foreclosure. This depends on whether the foreclosure was judicial or non-judicial.

Lawrence Roberts is the author of The Great Housing Bubble: Why Did House Prices Fall?

Learn more and get FREE eBooks at: http://www.thegreathousingbubble.com/

Read the author’s daily dispatches at The Irvine Housing Blog: http://www.irvinehousingblog.com/

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By Alan Sharp

 It is an interesting real estate market we’re living through. Almost every state is experiencing real estate value decreases. Housing inventory is at all time highs, and the rate of foreclosures is awful.

We are seeing these dramatic market shifts is because mortgage guidelines became too lenient. People who shouldn’t have qualified for loans, were now qualified. Another factor that added to the real estate meltdown was that mortgage interest rates dropped to the lowest rate they had ever fallen to, and buyers could now also afford more house. More people were able to buy, and demand for housing saw dramatic increases. The number of available homes couldn’t keep up with the number of new buyers, and prices went up. And up. And up. Real Estate was now not affordable to the average buyer, so creative loan terms were created to help more people who couldn’t afford homes, to temporarily afford homes.

This appreciation in prices created real estate investor speculation than ever before. Some areas saw more than half the houses being purchased by real estate investors. They purchased the homes and then flipped them for large profits. Overall the economy boomed, people borrowed against their increased home values, spent the money, and all was well. But the problem was that the real estate boom was all fueled by artificial, unsustainable forces. Real Estate weren’t bought because of a housing need, they purchased them because they could make a profit.

Then reality hit. Housing was not affordable and home sales dropped. The economy started to slow, and people couldn’t make payments on the homes they never should have bought. The credit market crumbled. Banks failed, and government has stepped in to compensate for the effects that easy financing wrought.

Now mortgage rates are again unrealistically low, but this isn’t fixing the problem because Americans fear buying, and because it is not nearly as easy to get mortgage financing like before.

The number of homes for sale is high, and there are more MLS listings than imaginable. Skilled buyers are getting a bargain so that even if home prices dropped further they’d still be in good shape.

The real estate market has experienced some dramatic shifts this decade. The current real estate market has seen drastic real estate value drops in most of the US. The number of homes for sale in major areas is at all time highs, and there are more homes in default in history. Some areas are beginning to shift again. Now might be the opportune time to buy real estate.

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Welcome to Real Estate Opportunities.

By Lawrence Roberts

 During the decline of house prices in the deflation of the housing bubble, price levels will fall to fundamental valuations of historic levels of appreciation, price-to-rent ratios, and price-to-income ratios. The nominal price declines may be impacted by inflation and monetary policy of the Federal Reserve, but inflation adjusted prices will fall precipitously.

As people put less money toward housing payments either by choice or by tightening lender standards, prices will not be supported at inflated levels. The combination of unemployment, higher interest rates and the elimination or severe curtailment of exotic financing terms will make refinancing more difficult and the resulting unaffordable mortgage payments will put many borrowers into foreclosures adding large amounts of must-sell supply to the market, driving prices lower.

If prices follow their historical pattern, they will fall down to their fundamental valuations by 2011. There are a number of variables which will influence the depth and timing of the decline, and most of the risks are to the downside. There will likely be an overshoot of fundamental valuations at the bottom. Despite all the nuance and analysis, everything comes down to one simple indicator: to paraphrase James Carville and Bill Clinton, “It’s the Foreclosures, Stupid!”

So what implication does all of this have on a future buying decision? Buyers should not count on appreciation. If a buyer needs to factor in appreciation to make the math work on a home purchase, she will buy too early, and she will pay too much. When the cost of ownership is equal to the cost of rental it is safe to buy. Even if prices drop further, which they might, buyers will not be hurt because they will be saving money versus renting. If buyers are counting on increasing rents or house price appreciation to get to breakeven sometime later, they will probably get burned.

Buyers should think about what terms and conditions a future buyer will face. During the bubble prices were bid up to unsustainable heights. Prospective buyers should not purchase when conditions are not favorable. If interest rates are low, debt-to-income ratios are high, and exotic financing is the norm, it is a bad time to buy. It seems counter-intuitive, but a wise buyer wants to purchase when credit is tight and values are depressed. Buyers should be patient and wait for the conditions to be right because a future buyer can pay more when credit is loose and prices are inflated. A house is only worth what a buyer will pay for it.

Lawrence Roberts is the author of The Great Housing Bubble: Why Did House Prices Fall?

Learn more and get FREE eBooks at: http://www.thegreathousingbubble.com/

Read the author’s daily dispatches at The Irvine Housing Blog: http://www.irvinehousingblog.com/

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By Shannon Wisner

 Austin Texas homes: Where and How to Find Them

Searching homes in Austin can be very difficult since it is a very big place. Just like buying a property in any state, buying the right one relies on so many factors. One of those things is the real estate agents that you should talk to in order to get the right property for you. In searching for Austin Texas homes, it is best to visit the official website. Austin Texas homes website offers information on where to look for Austin homes for sale. This site contains all types of information that you will need in order to get a lockdown on those perfect homes in Austin, Texas.

Texas real estate has its own search engine, which informs you of everything that you need to know regarding Austin Texas homes. Everybody knows that getting a good deal on a house does not only mean looking at it exteriorly and comparing what you see to the price to see if you are being asked for too much or for too less. In order to get the best deals in homes at Austin, you have to contact the best of the best when it comes to Austin real estate. Browsing for Austin real estate agents is now made easier with its very own search engine.

It is not that difficult to choose the right Austin Texas houses for you, your family and probably your friends. All you have to do is search the type of property that you want in the Austin Texas real estate search engine and you are guaranteed to find what exactly you are looking for. The site not only provides pictures of the potential house and the lot that you may want to buy but also offers description of each. It may also include price range so that you will be able to plan your next move better. That means deciding on whether you should get the property or not. After all, it is not enough that you just see the place; you have to know everything that you can about it as well.

The site allows you to view the Austin Texas homes for sale in any way that you want. They have already sorted it out for you. If you want to live in a specific place in Austin, you will have no problem because it is very easy to find Austin, Texas homes that are for sale in very specific places in Austin Texas. The choosing is completely up to you. Finding great deals is also very easy since the prices of these properties can be viewed very easily.

Just remember that just like buying a house from other states, it is very important to consider what you feel about the place. Austin Texas homes are known to cater to people who want simple and cozy homes. Then again, you will not be able to feel just how cozy a house is if you do not step your foot into it. Just remember this and you will be sure to find the right homes in Austin, Texas.

Shannon Wisner is author of this article on Austin Home Search.

Find more information about Austin tx homes here.

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By Stanley Popovich

 Interested in buying some property or a home? There is much fear and anxiety in the real estate industry with people losing their homes and property values decreasing. Enclosed are some techniques on how to maneuver your way through the process of buying a home or property without getting caught up with all of the fear and stress.

One of the most important things is to do your homework and educate yourself about the industry. Understand how the real estate process works and proceed one step at a time. Take the extra time to read some books or talk to a local expert so you will be an informed consumer. This will save you a lot of time in the long run.

Have your finances organized. Make sure you have an idea on what you can afford and also make sure that your credit is good. The financial aspect of buying a home does not have to be scary if you have good credit and a budget. Some people may buy a house that they cannot afford and this can cause problems down the road. Determine what you can afford and develop a budget where you will be able to keep up with your mortgage payments.

Try to get a friend who is more experienced to help you. Chances are very good that you know someone who has purchased a home or a piece of property. You could ask them for their assistance and ask them questions on what to do and what not do. Having a friend who can assist you along the way can really help reduce the anxiety of purchasing some property. Again if you do not know anyone then you will need to read up on the process of doing business in the real estate industry.

Determine what kind of home or piece of property you want. It will save you a lot of time in the long run if you know what you are looking for. The last thing you want is to waste your time looking for houses that you know that you will not like. Sit down and think about the kind of house you are looking for and convey this to your real estate agent. This will save you a lot of time and effort.

If you find yourself struggling with your home or piece of property your trying to sell, remember that no one can predict the future with one hundred percent certainty. Even if the thing that you feared does happen there are circumstances and factors that you cannot predict which can be used to your advantage.

Purchasing a home or a piece of property does not have to be a bigger deal than it has to. The important thing is to be informed of the real estate process, determine your interests, and have your finances under control. There are many people who are in the same position you are in so do not get overly stressed. It will take some work, but eventually you will find something that you will like.

Stan Popovich is the author of, A Layman’s Guide to Managing Fear, an easy to read book that presents a overview of techniques that are effective in managing persistent fears and anxieties. For additional information go to: http://www.managingfear.com

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By Evan Sage

 There are many ways for Toronto real estate agents to develop the right price for a property and we use them all depending on the situation. There are many variables that need consideration because one variable could drastically alter the amount that you want to list your property at.

Why is it important to list at the right price? The best price to list your property at is the price that will be the closest to what it will actually sell for. I know that sounds obvious but we run in to a lot of clients who feel that their property is worth a lot more then it is and they want to try their higher price first.

Some real estate agents are tempted to let their clients do this because they have a fear that they will not get the listing and some other agent will. Some clients might say that the real estate agent just wants to sell it at low price so it will be quick and they can move on. If that is the real estate agents attitude you will sense it in all of their work with you, not just the price. A good realtor will actually stick to their pricing and not suggest that they can get more for you just so that they can get the listing.

First impression is the most important thing when selling a home. People search for real estate in select areas and tight price brackets. $325-$375k loft downtown, $400-$450k in Leslieville, $800-$900k in Summerhill, $1.3M- $1.5m in Lytton Park, $2.5M-$3m in South Rosedale. They will typically look at houses that are listed for lower than the ceiling of their budget but serious buyers will never look at properties beyond their budget.

Your best market exposure is the first 21 days after you first expose the property to the open market. This is when you will get the most amount of money for your home and hopefully not leave anything on the table. The market experts will get their first glimpse of what you have to sell. The experts are all of the active realtors in the market and their buyer clients. These people know everything about your market and what is going on in it.

The experts will see it in their daily updates and will be calling their specific clients who want to buy a property like yours. Neighbours will be calling their friends who have always talked about wanting to move into the area, and people who are looking in the papers, or online resources will be seeing it for the first time and will be contacting their Realtor.

Trying an unrealistic list price will result in you you will not reaching the right group of experts and they will simply be unimpressed with what you are offering at the inflated price. They are looking in their price bracket and they will not want to buy something that is not comparable to what else they are seeing in their price category. This will actually just help the other listed homes look like a better value.

If you waste that opportunity to make your first impression you will never get it back. As soon as you have stopped getting showings and everyone realizes that the property is overpriced it will take at least a 10% price reduction to stir up some new interest.

Someone with a budget of $1.6m looking to buy a house on Alexandra in Lytton Park will not want to purchase a 25 foot wide property, un-renovated that the owner thinks is worth $1.595m when it really shouldn’t be higher than $1.4m. This will annoy the experts and they will talk poorly about wasting their time, which will give you further negative exposure, it will sit on the market becoming stale, it will get a stigma of something being wrong with it and most importantly it will miss reaching the realistic market of active clients looking to buy a house in Lytton Park for $1.3m-$1.450m.

One of the key things a good realtor does each week is go and visit every new listing in our select market place. This helps us build an automatic sense of what the right price is, what is too high, or what is great value. That is a really good reason to hire an agent that works specifically in the area that you want to live in.

Evan Sage is one of only a handful of award winning Toronto real estate agents. Evan instills in his clients the confidence to make the right purchase or sale decision. He achieves this by demonstrating a superior knowledge of Toronto real estate and by providing a wealth of free resources on his website evansage.com to educate buyers and sellers in Toronto.

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By Darlene Gremlek

 If you have been thinking of relocating to Kennewick, Washington or somewhere else in the Tri Cities area, then you need to confer with leading WA realtors. Kennewick, which is settled near the Columbia River, is known to be one of WAs swiftest developing areas. During the summertime, the Tri City areas experience sparkly, sunny days, yet even the winters bring in a good deal of warmth. Families of Kennewick, Washington can experience three hundred warm, sunny days a year!

Now is the nicest time ever for making real property buying in that area. Over the past few years, the overall population has raised significantly, as word is coming out about WAs sunshine filled heaven, Kennewick. There are also a good deal of business opportunities, and the median household income is around $50,000. Even though it is a developing city, it still gives residents a small town feeling, and its 1 of the most splendid areas in America to raise a family unit.

Since Kennewick experiences great weather conditions all year round, it is a flawless area to live, especially if you love outside activities. The criminal offense rate is low, much less than both WA and the national averages. This entails that Kennewick is 1 of the safest areas to raise a family in not only WA state, but the whole country!

Love shopping? There are numerous shops, boutiques, and shopping malls in Kennewick. There are several unique restaurants to opt from. Youll have a good deal of choices for your breakfast, luncheon, and supper. The Canyon Lakes Golf Course is near, so you may spend your years golfing if you desire. Last but not least, Kennewick is well noted for its prize winning, exquisite wineries!

If you desire to begin your life once more in a new town, or if you currently live in Kennwick and desire to purchase a new house, then a great real estate agency will help you with whatever you need. There are many good, low-cost condominiums and homes in and around Kennewick, Washington.

Written by Darlene Gremlek. If you are curious about more information, see: Kennewick WA Real Estate and read About Joe & Colleen Lane

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By Kirthy Shetty

 Sustainable building is a concept which is fast catching up with urban dwellers. The concepts involved in sustainable building or construction primarily reflect the principals of sustainable development i.e. environmental protection, economic development, and social development, in design, building, maintenance and occupation of buildings. These buildings are designed and constructed keeping in mind the environmental standards.

Sustainable buildings will help minimise energy requirements and help reduce water consumption, use materials which are of low environmental impact e.g. low embodied energy and resource efficient, reduce wastage, conserve and enhance the natural environment and safeguard human health and well-being too.

While constructing a green home building, you must keep in mind certain factors:

Environmental factors: It is advisable to give due consideration to conservation and enhancement of the site ecology or biodiversity.

Look into how much energy is consumed: If suitable measures are taken to minimise energy consumption, high levels of insulation are adopted, it can help minimise energy consumption. Maximising daylight and using energy efficient lighting and appliances can also help achieve the goals.

Transportation facilities: If the site of construction is nearby, it can help minimise the expenses. One should give due consideration to transport routes, proximity to amenities and places of work, space for home working also.

Water consumption: The quantity of water consumed, reusing rainwater, water efficient appliances, minimising and attenuating surface water run-off to prevent flooding and pollution can all help save water.

Affordability: If it is proving very expensive, the cost of ownership can be minimised.

This can also help curb down the degradation of the environment to a large extent. The choices made now will influence the quality of life of the next generation. This can also enhance the look of the house. Sustainable building is not only eco friendly but also less expensive. Usage of natural, non-industrial materials, will also improve the energy equation when building.

Following certain green home building guidelines can help construct an environment friendly building. Apart from houses, architecture and design firms, construction and development, hospitality, and other service providers too have incorporated these guidelines. Such buildings are environment friendly. As compared to commercial sector, the residential sector has lagged behind.

Going in for such houses will help save a substantial amount of money too. Since, the products used for construction of houses are natural, they will be less expensive. You can make your contribution by opting for eco friendly houses. Looking online for information on construction of such houses can help get the required details about green home building. One can get all the required information about sustainable architecture and natural building.

Article Source : Article King Pro - Free Reprints and Distribution

Sadhna D, Expert author, Platinum status. Green building advice and tips: Green Home Building Guidelines

Free guide or assistance on Eco Homes: Eco Homes for Sale

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By Lawrence Roberts

 A short sale is a property closing where the proceeds from the closing do not satisfy the outstanding debt on the property. The lender must agree to accept less money at the closing table for the closing to occur. From a credit perspective, there is little or no difference between a short sale and a foreclosure. Both a short sale and a foreclosure will show a series of missed payments and a secured credit line (or multiple credit lines) with a permanent delinquency and discharge for what is generally a very large sum of money. Both will have a strong, negative impact on the borrower’s FICO credit score that will persist for many years.

Because of the potential for fraud and the bureaucratic tangle of various parties involved, it is very difficult to get a short sale approved. If a lender is going to lose money, they are going to want to be sure the borrower is not selling the property to a friend or relative or engaging in some other kind of fraudulent conveyance. Also, the lender will want to be sure the borrower cannot pay back the money. They often require additional financial information like updated W-2s, 1040 tax returns, and a statement of assets certified by an accountant.

In most cases, the borrower will have to stop making payments as evidence of their inability to do so in the future. Further, the property will also need to be listed for some period of time at a sales price which would result in sufficient funds to pay off the loan. Once it is demonstrated to the lender that the borrower has stopped making payments, cannot reasonably make future payments, and the property cannot be sold for a breakeven amount, then the lender may grant a short sale request. None of this happens quickly. If a buyer is found who is willing to purchase the property, the process of approving a short sale is so long and cumbersome, most buyers will move on to one of several other available properties on the market.

In the end, a short sale is only in the best interest of the borrower if they believe the bank will try to collect on the shortfall from the property sale. If a borrower is in a position where he will have to pay back any losses, a short sale may result in a smaller loss than a foreclosure and subsequent auction. If the borrower is not in a position where the lender either can or will go after the deficiency, there is little incentive for the borrower to even attempt a short sale. In these instances, the borrower generally lets the property go into foreclosure.

Lawrence Roberts is the author of The Great Housing Bubble: Why Did House Prices Fall?

Learn more and get FREE eBooks at: http://www.thegreathousingbubble.com/

Read the author’s daily dispatches at The Irvine Housing Blog: http://www.irvinehousingblog.com/

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By Kirthy Shetty

 Basically real estate is a legal term that encompasses land along with anything permanently affixed to the land. Buildings, specifically property that is fixed in location also falls under real estate. Real estate is a flourishing business. Many a times, it is also referred to the land and fixtures together. Any kind of dealings made with regard to sale of land, fall under real estate business.

The development of private property ownership and real estate has become a major area of business. Real estate dealings require a huge amount of money. This industry is also being seen as a fast way to make money. There is huge money involved in this. There are various kinds of real estate businesses:

People, who wish to buy property, can approach real estate agents. They can guide to get the best dealings. There are many other property sites dealers online who can offer the best deal. Before making a choice, you must give due attention to the type of property you wish to but and the dealer you choose. This will help you make the right decision. They can give you a complete view of the real estate market; the latest trends, assistance in buying your dream house, or a commercial property, in Bangalore. Real Estate Bangalore is a flourishing business. Bangalore is being seen as the prime spot of real estate business. An increasing number of people are buying property in Bangalore.

Similarly, Mysore is being seen as a prime spot of property dealings. Real estate Mysore has also grown significantly. There are many advantages of this type of real estate business. A buyer can get a property at a lower rate by approaching real estate dealers. They can help get the beast rates. The idea is to make property dealings smooth. The rates of property vary from one city to another. A city like Bangalore attracts huge number of people from all over the world. Buying, selling or taking property on rent; can all be done through real estate agents. Looking online for information can help make a decision fast.

Real estate agents need not worry about loosing a buyer. Dealings made through real estate property dealers is the surest way to profitability. You can list out your priorities and get the best deal. You are free to select a property, whether it is an apartment, site, farm, commercial plot that you want to list for selling or renting. You must also ensure that the property is in and or around Mysore or Bangalore.

Sadhna D, Expert author, Platinum status. Know more about Real Estate Bangalore: Real Estate Bangalore

Free guide or assistance on Real Estate Mysore: Real Estate Mysore

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