The Banks are Finally Paying Attention

Short Sales are Actually Closing!

This month we saw the positive effects of President Obama's stimulus package. Three of our luxury listings were approved for Short Sales by the bank, and are under contract and closing in less than 30 days.

What is the Impact to you?

We are experiencing an increase in feedback from the banks on all offers our buyer's are submitting. Banks are beginning to participate in the short sale of properties encouraging buyers to write more offers. We are seeing the timelines decrease from 60-90 days down to 30-45 days. Even though the banks will not commit to considering an offer until something has been submitted on paper, they are now processing the offers and evaluating contracts. Actually, in the past month we have been outbid on more than a handful of actual foreclosures and we have found the same experience with many of the short sale properties. If the property is priced properly our buyers are finding there is more than one additional prospect interested in the same great bargain. As the summer months approach and more families move in to the area, the house hunting will become more intense and the good deals will disappear. As a buyer today, it is best to make a move if you find the right home. If you don't someone else will. Also, if you are considering a short sale, remember to have patience. The timelines are not standardized and if you expect the bank to cover a large loss for a seller, their analysis won't happen over night.

Mortgage rates at record low for second week

If you are looking for another reason to buy a home this might help! The Federal Reserve is doing what they can to boost the U.S. housing market and helping buyers purchase homes by lowering the rates for 30 year mortgages. For the second week in a row mortgage rates are at an all time low. If you are considering refinancing, the same great rates apply. With the great low rates comes some turbulence. Not everyone will qualify for the low mortgage rates. Lenders have raised the bar on the qualifications and only those with solid credit scores will be able to benefit. If you are in the market for a 15-year fixed rate mortgage you will be pleased to learn the rates have dropped from 4.58 to 4.52. Rates on the five-year and one-year adjustable-rate mortgages have also experienced a slight drop as well. Remember, these rates do not include your add-on fees (points) so ask your lender.