FHA Loans and VA Loans Cost Home Buyers

Collier Swecker video blogs about how FHA home loans and VA home loan programs for home buyers often sound great because of little or no down payment but what home buyers do not realize is that FHA loans and VA loans have upfront fees and costs that exceed 2% of the total borrowed amount. These upfront costs do not go towards equity and if the buyer spent just a little bit more the entire amount in a conventional loan would go to equity in the property. Also keep in mind that with FHA loans, PMI stays on for the life of the loan. It only takes 5% of the purchase price to get a conventional loan vs. the 3.5% FHA / 0% VA. If you have any questions or comments email me at Collier@MegaAgents.com, visit my blog at www.CollierSwecker.com or my website at www.MegaAgents.com.

 

Banks are Finally Pricing Foreclosed Homes To Sell

Collier Swecker video blogs about how home buyers need to understand that banks have started to accurately price foreclosure listings so that they will sell quickly and closer to asking price. Gone are the days where banks spend little effort in arriving at a listing price and just hope that they get as much as they can. The banks have finally learned that they will economically come out better if they act more like a traditional home seller than as a stubborn bank. This economy has forced the banks to not only price homes accurately but also to do more necessary repairs on the home prior to putting it on the market.  If you have any questions or comments email me at Collier@MegaAgents.com, visit my blog at www.CollierSwecker.com or my website at www.MegaAgents.com.

Home Buyers That Work For Family Owned Business Face Some Mortgage Obstacles

Collier Swecker video blogs about how home buyers who are employed by a family member in a family owned business will find some additional mortgage underwriting issues that may delay the process if they are not prepared. This especially true if the borrower has the same last name as the owner of the business. Collier talks about a client who had no red flags in his mortgage application other than having the last name of the owner of the business for which he is a salaried employee with no ownership interest. It is so important if you are in this situation that you contact an experienced Mortgage Lender before you start the home buying process. If you have any comments or questions, email Collier at Collier@MegaAgents.com or visit my website at www.CollierSwecker.com.

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Does Stopping Foreclosures Really Benefit The Real Estate Market?

Collier Swecker video blogs about how some of the large Lenders have frozen foreclosures and he gives his opinion about the effect that these actions will have on the real estate market in Birmingham Alabama. Even though many foreclosures have been halted by lenders such as Bank of America and Chase, almost all of the foreclosures that are currently pending and those in the pipeline to be foreclosed on will eventually be foreclosed upon because only a handful of loans are ultimately going to be found fraudulent or improperly foreclosed upon thus resulting in the eventual lawful foreclosure of most effected loans / homes in the Birmingham AL real estate market. We are only delaying the inevitable for homeowners that should not be sent mixed signals from the Government and the Lenders. This delay of foreclosure proceedings should see average sales prices in the Birmingham market increase a bit, if only temporarily, due to the absence of foreclosed homes being sold. The average sales price in the Birmingham market as a whole has been dragged down a lot over the last 3 years because of the large number of short sales and foreclosures. The good news for Birmingham has been that non-distressed properties have held their price well over distressed properties, which is a different situation than that found in markets like Las Vegas and Miami. In other words, non-distressed properties have not fallen at even close to the rate of distressed properties like short sales and foreclosures. Sellers in the current market may actually benefit by receiving a little more for their home than they would have if these foreclosures had not been halted. This is due to more demand for housing by buyers because there are fewer homes on the market. The only concern that I have there is that it seems like Buyers are sitting on the sidelines with their cash, waiting on the outcome of the mid-term elections. If you are a Seller, just remember that just because many foreclosures cannot be sold currently, this does not mean that you should raise your price or expect more concessions from buyers. This economy still stinks and Buyers do not have any more disposable income than they did two weeks ago.  I hope that the banks come together and work on a plan to put the foreclosures on the market in such a way that the Birmingham market does not get hit with a flood of foreclosure inventory at the start of what I hope to be a recovery in 2011. If you have any comments or questions about some of the Lenders like Bank of America and Chase temporarily stopping foreclosures, email me at Collier@MegaAgentRealEstate.com or visit my website at www.MegaAgentRealEstate.com.