Job opportunities may trigger a need to sell your home: Short sales and other solutions

Job opportunities beckoning from a distance are exciting, but in this house market, those selling a home consider their likelihood of success a major part of the decision whether or not to pursue one of those opportunities. An experienced Realtor can help you make that decision.

A moving van may be in your future if a job opportunity beckons. First, though, you have to sell your home.

Recent figures released by the Otteau Valuation Group show some improvement in the real estate market since last year in MorrisCounty. For instance, last month, there were 483 homes sold in Morris County. A year ago, there were only 439 homes sold during May. Inventory is lower and there are fewer sellers for each buyer.

Those statistics don’t mean much if you’re living in a home you purchased at the top of the market that will never sell for a high enough sum to pay off the mortgage. That can mean a quick end to pursuing a dream job out of town.

That was the situation for Kathy and Bruce, who have a business and a home in Succasunna. They have a terrific opportunity waiting for them in Derby, Kan.  The couple knows they can’t sell their home for what they paid for it, and they are considering working with The Holmquist Team and attorney Marty Egan to use a short sell to sell their home.

“We have questions about the effect on our credit scores,” said Bruce, who will be meeting with us to discuss such issues.

The key for people like Kathy and Bruce is to find a Realtor and an attorney that they trust. They need advice from both, working as a team on your behalf, to decide whether they can sell their home through aggressive marketing, keep and rent the home, sell the home through a short sale or pursue another alternative.

All signs seem to be pointing to an economy that is slowly beginning to improve. That can mean the creation of new opportunities. If you’re thinking about pursuing them, if you want to get out from under an oppressive mortgage, or if you need to sell your home for any other reason, work with a Realtor to determine if selling your home will be a challenge.

For instance, if you purchased your home 30 years ago, you don’t have a mortgage and you want to sell it and move to an active-adult community somewhere, your home needs a relatively simple but professional marketing program by a Realtor who understands the current market.

But if your home is “under water,” meaning it isn’t worth what you owe on it, you may face special challenges, even if you are current with your mortgage. That’s when you need a Realtor and an attorney with extensive experience with distressed properties.

With interest rates low and the market coming to life, now really is the time to put your home on the market. If you need help determining how best to do that, please give us a call.

Holmquist Team, Other Realtors, Will See More Short Sales In Coming Days

For those swamped by their mortgages, short sales may help avoid the coming tide of new foreclosures.

Although the news media and real estate blogs have been talking about the improving real estate market, there’s an unpleasant fact that people in the market have to face: Even as home sales are increasing, The Holmquist Team and other Realtors in New Jersey soon will see many more foreclosures and short sales.

The housing marketing is improving. Home sales in theNorthwesternMorrisCounty area up, days on market are down and the number of buyers per home is increasing. But a recent report by the Mortgage Bankers Association saysNew Jersey now has the second highest percentage of mortgage loans in foreclosure in the country. With 8.4 percent of homes in foreclosure,New Jersey is second only behindFlorida.

The problem is a 2010 court-ordered moratorium on foreclosure filings as part of the “robo-signing” scandal. Banks and mortgage companies were signing so many documents so quickly, that they often didn’t have proper documentation when a home was sold and couldn’t prove ownership when foreclosures were challenged. Add to that New Jersey’s court process that stretches out for more than a year, and you loans due for foreclosure just piling up.

Now the courts have cleared the way for the floodgates to open. While Realtors, economists and government officials will say that the housing market can’t stabilize until the foreclosures are dealt with, it doesn’t help those who are drowning in debt and facing foreclosure.

For some, foreclosure can’t be avoided. But for others, there are ways out. For those behind in the mortgages or barely keeping up, the issue may soon be unavoidable.

For those folks, attorneys and knowledgeable, experienced Realtors can provide information about the many federal, state and non-governmental programs that are available.

There are programs to help people in foreclosure. Others help people readjust their mortgages. For many, short sales are a good answer. In fact, several experts are predicting an increase in the number of short sales.

A short sale is when the bank allows a homeowner to sell a home for less than what’s owed on it. The seller gets to stay in the home until closing. Short sales have less of an impact on the seller’s credit rating.

On the other hand, there are complicated negotiations and there could be tax implications to a short sale.  It takes a team of experienced Realtors and attorneys to do a successful short sale.

If a short sale seems like a good idea, talk with your Realtor or attorney. Make sure they are experienced in dealing with short sales.

And plan on spending Monday evening, June 11, with us at Cinders on Route 46. I’ll be there with attorney Marty Eagan, an attorney who specializes in short sales and other distressed sales. Call (908) 867-7109 or email me at kholmquist@comcast.net.net for more information about our free workshop.

Summer’s Here: Time To Make Your Home Bloom

Realtor Kelly Holmquist recommends planting brightly colored flowers to help homes for sale sell more quickly.

LONGVALLEY– It’s summer, and houses for sale are popping up like dandelions. Making a home standout in the summer means staging it so it’s the most attractive-looking home on your block from the outside as well as the inside.

If you’re selling a home, you’ve heard about staging your home. What you may not realize is that staging is different in the summer than in the winter. Here are 10 things The Holmquist Team tells its customers to do to make their homes jump out as the most desirable in their neighborhoods:

1. Step across the street and look at it as a house, not your home

Forget about all the good times you’ve had in that home and look at it like a buyer would: $$$$$. By adopting this mind set, everything else comes easier

 2. Trim the trees and plants, take down hanging plants and wind chimes

You want visitors to see your home and how pretty it is. You also want to make sure there’s amble space for light and air to get through to the windows. Trim low-hanging branches and run-away bushes. Make sure windows and doors are visible from the street

3. Give the outside of your home a good cleaning

Make sure there are no sticks, branches or other debris on the roof. If your home has vinyl or aluminum siding, consider power-washing it, especially if there’s mildew anywhere. If you’re home needs paint, invest in having it painted. Don’t forget to clean your windows.

Get all the outdoor toys organized in one place and move the trash cans, hoses and similar utility equipment somewhere where they’re out of the way and not readily seen from the street.

4. Stage the front porch and the back deck or back yard

Don’t overdo it in either place. If you have a front porch, consider putting a couple of chairs or a bench on it, along with a small table. Add a vase of flowers on the table. 

The backyard should definitely be staged as an extension of your home. At the very least, put a few chairs around a table with, perhaps, an umbrella. Put out a table cloth and set the table. If you have a special view or spot in the backyard, consider highlighting it with a bench or a couple of tables.

5. Green up your lawn and gardens

Make sure your lawn and gardens are well watered and brightly colored. If your lawn has large yellow spots, consider having a lawn service fix it. One professional stager suggested a quicker fix: There’s paint out there with colors that are close to that of your lawn. She suggests painting the spots.

Plant flowers that bloom in bright reds and yellows. If you don’t have a garden, consider planting one just to brighten the outside of your home.

6. Driveways

You can’t hide your driveway. If it’s paved, consider having it patched and sealed. If it’s gravel, consider adding gravel and having it rolled. If your driveway is beyond repair, consider replacing it. The only alternative is acknowledging that you may need to lower your price so the buyer can fix it.

7. Front doors

Your front door is a major part of your home’s presentation. Consider painting it a bright, but complementary color. Some stagers suggest adding a brass door knocker or kickplate or both.  If your front door is old and in bad condition, consider replacing it.

8. Roof

Roofs are like driveways: You can’t help but see them. If your roof needs more than cleaning, you may want to consider replacing it. At the very least, if winter storms have left shingles broken or out of line, have them repaired or replaced. Discuss with your Realtor whether it’s worth replacing the roof or simply adjusting your price.

9. Fix and run your air conditioner

Open windows can give a home nice airy feel in the spring, but once the oppressive summer heat sets in, run your air conditioner. Let buyers enjoy the cool air of your home. It’ll make them stay longer and enjoy your home more.

 10. Inside

The rules for inside your home are the same as they are for the rest of the year: declutter, clean and organize. Make sure your home, not its contents, are what buyers are seeing. Of course, in the spring and summer, make sure heavy curtains are down so there’s lots of light coming in. And put out vases of brightly colored flowers and bowls of fragrant, seasonal fruit in the kitchen.

By the way, if you have pretty photos of your home in the winter, put them out for buyers to see so they can imagine having, say, Thanksgiving in your home.

With the market beginning to come back to life, you don’t want your home to be left behind. Buyers today are expecting the home they buy to be ready for occupancy. That means you need to make an extra effort to make your home attractive and move-in ready to command top dollar and be competitive.

Ask your Realtor to use his or her trained eye to give your home a fresh look and offer you advice on making your home so attractive, there’ll be a sold sign on it before long.

If The Holmquist Team, part of Keller Williams Towne Square Realty, can help you, please call us.

National Housing Numbers Deceiving – Local Market Warming Up

(You can see a video of Kelly Holmquist talking about the market in Northwest New Jersey by clicking here. )

LONG VALLEY, N.J. – The National Association of Realtors last week said that the number of existing homes sold across the country was down in March, but the numbers for the first calendar quarter were the best in several years.

Announcement about pending home sales – homes that went into contract and will close later – are to be announced Thursday.

National numbers tell you nothing about what’s going on locally. You need a Realtor who is familiar with the neighborhoods you’re interested in. It really doesn’t matter how well the market is doing in Timbuktu if you’re interested a specific neighborhood in Chester, Mendham, Mount Olive, Long Valley or somewhere else in this area.

More sold signs are popping up.

Speaking of those towns and our area, the market is warming up to be a great spring. That doesn’t mean the market has changed, but we’re definitely seeing signs that this is the best market we’ve seen in a long time, and if you need to buy or sell a home, well, you know the rest of the line: It’s a good time to do it.

Recent reports say that the number of homes that went into contract in March in the Chesters (two in the Borough, nine in the Township), the Mendhams (14) , Mount Olive (21) and Long Valley (19 for Washington Township) were the highest number of pending home sales since the beginning of the year. In fact, acrossMorrisCounty, 502 homes went into contract in March, the highest since the year began. Last year, only 383 homes were sold in March acrossMorrisCounty, so it’s an increase since last year, also.

It’s not a trend yet, but here’s a news release and video we issued when the existing  home sales report came out late last week:

 

LONG VALLEY, N.J.– The volume of existing home sales in Northwest New Jerseyhas been “tremendous” during the last month, according to Kelly Holmquist, a prominent Realtor in the area.

Ms. Holmquist, who leads The Holmquist Team, part of Keller-Williams Towne Square Realty, made her remarks as the National Association of Realtors announces its monthly report on existing home sales. That report says that home sales fell slightly nationally, but that sales for the first three months of the year were better than the same period last year.

Saying there is no national real estate market, Ms. Holmquist said real estate is very local. While she did not disclose specific numbers, Ms. Holmquist said sales in the northwestMorrisCountyarea have been very strong during March and April, with homes selling in a week our two and sellers receiving multiple offers.

“The buyers are finally getting it,” said Ms. Holmquist. “Interest rates are down, prices are down and there’s a good selection of homes. It’s not going to get much better.”

While prices may slip a little more, she anticipates that interest rates will begin to rise soon. The rising rates will erase any price decreases. That, of course, is not the best news for home sellers.

“The good news is that there are buyers, so if you need to move, you can sell your home,” said Ms Holmquist.

While she sees the current conditions as excellent, she’s not ready to declare the market changed. That, she says, can only be determined by looking back at six months worth of market statistics. While she’s hoping current conditions become a trend, she’s concerned that the spring selling season could slow down because it started so early. She notes, however, that in most towns in her area, homes are being sold very quickly. That keeps the inventory fairly low.

The brisk activity is a bit of a game changer for those buying or selling homes, says Ms. Holmquist.

“There are a lot of homes coming on where the Sellers are realistic and aggressive with their pricing,” she said. “Buyers are competing with multiple offers. You need to study the comps and really know the value of the home you want.”

Sellers also need to compete knowledgeably.

“Stage your house,” she said. “Make it look great. Houses that look great and are priced well are the homes that are moving.”

Ms. Holmquist is the team leader for The Holmquist Team, part of Keller Williams Towne Square Realty, and one of the top-producing real estate teams in Morris County, N.J.  She has been in real estate since 1997, specializing in residential home sales. After working at other agencies, she founded The Holmquist Team in 2008. A Certified Residential Specialist (CRS), she holds a bachelor of science fromPennStateUniversity. More information is at http://www.kellysellshouses.com or by calling (908) 867-7109. 

So…what are you seeing in your neighborhood? More “For Sale” signs? More “Sold” signs?

 

With the Housing Market Warming Up, Perhaps It’s Time for You to Jump In

If you’ve been wondering whether it’s time to dive into the housing market, a bunch of recent headlines seem to be saying, “C’mon in. The water’s fine.”

A lot of people have wanted to sell their home or buy a new home because of changes in their life. But they’ve been holding off because the housing market has presented so many challenges.  But look at these recent reports:

• The U.S. Census Bureau reports that the number of building permits in February was the highest since October 2008 (although down a bit from January);
• The closely watched S&P/Case-Shiller Report indicates that pricing was flat in the metro areas covered by the monthly survey.
• While the number of existing homes sold during February was down slightly, the numbers were the second highest since May 2010.
• Here inNew Jersey, appraiser Jeff Otteau, who has become the outstanding monitor of the state’s housing market, says the housing market is recovering. He said sales were up about 30 percent in January and February, compared with last year.
• InMorrisCounty, according to Otteau, there were 266 sales in January and 320 in February. There were fewer homes available in February than January and more buyers for each seller.
• Every news report has more and more economists and analysts speaking optimistically.

These ideas mean it’s a good time to take another look at the housing market. You’re not the only one who has been thinking about it. There are four or five years of pent-up demand ready to come into the housing market.

You still need to proceed carefully though.

If you bought your home in 2005 or 2006, it’s not the time to put your house on the market at what you paid for it. Housing prices are down and they’re going to stay down for a long time.

But if it’s time for you to get out of your home because you’ve outgrown it, because you don’t need that much space any more, because you are driving two hours a day to your new job or because its just time for a change, it’s worth talking to a Realtor. And if it’s time to get out of your house because you just can’t afford it, the odds are a little more on your side.

But move carefully and work with a professional. These are tricky times.

On the sales side, a Realtor can help you decide on the right price for your home. Overpriced homes aren’t going to sell. He or she can help you develop a sales strategy, decide how best to fix up and stage your home, and pick the right deal. If you’re upside down on your mortgage, make sure you pick an agent who is comfortable and successful with short sales and other methods of dealings with underwater mortgages.

On the buying side, a Realtor can help you decide how much you can afford, prequalify for a loan and decide what a reasonable offer is on a home you decide you like.

Spring is always a good time to buy or sell a home. This year is shaping up to be one of the best springs in a long time. If changing homes has been on your mind, maybe it’s time to jump into the market. At least c’mon in and take a look around!

In Real Estate, the Game is Offer, Counteroffer and Your Realtor Is Your Best Coach

Spring is here and for-sale signs are sprouting everywhere. What’s really exciting about this spring is that we’re seeing sold signs are popping up on many of those for-sale signs.

With a strong spring real estate market, it’s important to make sure you’re ready get what you can for your home. That

It's spring and flowers and for sale signs are popping up everywhere.

means pricing your home correctly and being ready to counter whatever offers you get.

It’s up to you to put a price tag on your home, but your Realtor should help you by showing you recent similar sales in your neighborhood, looking at the condition of your home compared to its competition and counseling you about preparing your home for the market. In addition, your Realtor is an objective third party who isn’t emotionally attached to your home. And when those offers come in, your Realtor will be able to help you decide what to do with them

You have three choices with any offer: you can accept the offer, make a counteroffer or reject the offer.

You and your agent can discuss whether it’s a good idea to simply accept the offer or counter it, but you should never reject an offer. An offer from a potential buyer is an opening gambit. As in any gambit, you should respond.

You and your Realtor can look at the offer, compare it to what you asked for and decide how to respond. An offer may contain more than just a price. It may call for you to make certain repairs, leave some things behind, call for a contingency (the deal ends if the buyer can’t sell their home) or have other conditions. The offer puts you as the seller at an advantage because you now know what the buyer wants.

Even if the offer seems ridiculously low or has terms you wouldn’t even consider, you and your Realtor should respond. Responding, or countering, keeps the conversation going and starts the negotiation process.

Your counter can contain a higher price, but something lower than your original asking price. You also can change the terms, such as increasing the deposit, offering to pay for certain reports or fees, or leaving behind appliances or other articles the buyer liked.

The hope here is that the potential buyer will remain interested and will counter your counter. This “conversation” requires patience and an experienced Realtor to guide you on what’s realistic, legal and productive. Potentially, you could have more than one negotiation going on.

The offer-counteroffer nature of real estate sales is one more reason why you need an experienced Realtor who will be candid with you and help you through the challenges of selling your home.

Make Sure Your Real Estate Agent Is Working For You

We’re enjoying a robust spring real estate market even though it’s just March. Many attribute that to the nice weather and improving consumer confidence, but whatever the reason, people are getting out and looking at homes. If you’re among them, you need a real estate agent who’s working for you.

It's proving to be a strong spring real estate market. With the right Realtor, this could be the time to sell your home or buy a new one.

Almost as a rule, real estate agents are nice, personable people. After all, selling a home is about as intensely personal as you can get, so it attracts “people people.” But don’t let their friendly manners fool you: Real estate agents are business people.

What does that mean for you?

It means you want to have a real estate agent who is on your side. If you’re selling your home, you want a listing or seller’s agent. If you’re buying a home, you want a buyer’s or selling agent. They can be the same person, but make sure you understand the relationship.

There are, of course legal definitions for all this. In fact, you’ll be asked to sign a “Consumer Information Statement on New Jersey Real Estate Relationships” and an agreement with your agent, outlining your relationship. Outside ofNew Jersey, the relationships are the same, although disclosure rules may differ.A seller’s agent works only for the person selling a home. He or she has legal obligations including loyalty, confidentiality and full disclosure. On the other hand, your seller’s agent must be honest about matters about the transaction or the property.

If your Great Aunt Tillie promised you $10 million if you’d just sell your house and move toTimbuktuwith her, confidentiality means your agent can’t tell a potential buyer how desperate you are to sell.

A buyer’s agent works only for the buyer and has similar “fiduciary duties.” The buyer’s agent has to be honest in representing you and in counseling you. For instance, if you can’t qualify for a mortgage, the agent can’t tell a seller that you can easily afford the home, no matter how much you want it and expect Great Aunt Tillie to help you out.

It gets tricky when an agent represents both sides of the transaction. It’s legal and ethical. It’s called a disclosed dual agent. If you walk into an open house, for instance, and fall in love with the home, you can ask the seller’s agent to work with you. That agent must disclose his or her role and you’ll be asked to sign an acknowledgement of that status. It means that although the agent knows how much the buyer wants to sell, he or she can’t tell you. On the other hand, if you’re about to come into a small fortune from your Great Aunt Tillie, the agent can’t tell the seller to ask for more.

In some agencies like the Holmquist Team, part of Keller Williams Towne Square Realty, the agents work together to take care of the customers without getting into the sensitive challenges of disclosed dual agent. They work within the same agency, so there’s excellent communication, but the buyer would be assigned a different agent than the seller to avoid the potential or appearance of a conflict. Some of our agents specialize in listing, some in selling and some in dealing with special challenges, and that brings additional skills to the table.

Finding an agent is one of the most important parts of buying or selling a home. First, ask around, visit a few Web sites and visit with a real estate agent you think you might like. If things feel right, select that agent as your buyer’s agent. He or she will counsel you about what you can afford, help you prequalify for a mortgage, and take you to see some homes. Your agent will fight on your behalf to get you the best deal possible.

If you’re listing a home, you want to do the same thing and select a listing agent. That agent will do the best he or she can to get you the most for your home. He or she will counsel you about what to fix up, how to stage and what you might realistically expect to get.

And, yes, the same agent can help you sell your home while helping you find a new home.

Finding the right agent or agents, and understanding your relationship with him, her or them will assure that your home-buying and –selling experience is profitable and comfortable. If you have questions about buying or selling a home, talk with a Realtor or call us. We’ll be happy to help.

The Housing Market Seems Poised for Recovery. Don’t Be Left Behind

Underwater mortgages are no reason to be left behind as home sales go up. You can refinance or sell your home through a short sale or other program.

Optimism seems to be seeping back into the housing market. At the Holmquist Team, we are seeing housing prices in the area stabilizing, demand increasing, inventory decreasing and mortgage relief is the talk of the town. Realtors across the nation are reporting similar findings. So even if you’re house loan is “underwater,” it’s not too late for you to get in on this growing spring market.

About a fifth of the homes for sale inLongValleyand a quarter ofMountOlivehomes are being sold through short sales. So if you’re struggling with a mortgage, there are two things you should know.

First, you are in good company.

Second, now’s the time to do something about it.

The statistics are easy to find, and the most important number is how many homes in your neighborhood are in foreclosure or behind in their payments. A Realtor can tell you that while he or she is helping you determine the market value of your home.

The most important information you need, however, is about programs that can get you out from under that oppressive mortgage. If you can avoid foreclosure, you should take those steps.

We’ll be conducting a free workshop at 7 p.m. Monday, March 5 at the Publick House onMain Street inChester to talk about some of those alternatives. Speakers include Kelly Holmquist, leader of the Holmquist Team, part of Keller Williams Towne Square Realty, and Marty Eagan, aMorristown attorney specializing in distressed sales.

They’ll be talking about short sales, where the bank allows you to sell your home for less than you owe on it; the Home Affordable Foreclosure Alternatives program, a federal program that helps you sell short or return your home to the bank in an option called a deed-in-lieu of foreclosure; or other tactics. The idea is to free you from that mortgage you can’t afford while trying to protect your credit rating as much as possible. Doing that usually requires a Realtor, an attorney and a dose of creativity.

Meanwhile, there are some other things you could be doing. Begin your spring cleaning early.  To a buyer, one of the advantages of a short sale over a foreclosure is that the home is usually still occupied and in good condition. So now is a good time to begin cleaning up, fixing up and maybe rolling on a fresh coat of paint.

Now isn’t the time to finish that basement or redo your bathrooms. You probably won’t see any increase in the value of your home. And, besides, as much as you like how that new bathroom looks, the new homeowner might have a different idea.

What’s more important is to put unneeded things away. Stagers – people who get paid to come in and tell you how to make your home look nice – will tell you that the most common problem with a home is clutter. It makes a home feel crowded and dirty. Put things away that don’t need to be out, get rid of the beat up old chair in the corner, no matter how much the dog likes it, and take other steps to make your home shine.

You’ll also need to fix what’s broken. It’s time to call the plumber to deal with the toilet that won’t stop, and have someone come and put that gutter back on the back of the house. A buyer will use such issues to knock big bucks off what he or she will pay.

If you have structural problems with the home, or it desperately needs a new roof or other major maintenance, talk with your Realtor candidly about it. Together, you’ll decide what’s worth fixing and what’s worth letting the new owner fix.

Nobody says you have to sell your home and move out, just because your home is worth less than your mortgage. If you’re working but you have to stretch to keep up with your mortgage, there are programs available to help you lower your payments or lower your interest rates. For instance the Home Affordable Modification Program (HAMP) can lower your monthly mortgage payment to 31 percent of your monthly gross income if you qualify.

The important thing, however, is not to sit quietly and watch everything you’ve worked for disappear, including your credit rating. Now is the time to take action. Give us a call, or check with the Realtor, attorney or financial counselor of your choice. And join us March 5. Make a plan and get out from under that mortgage.

Holmquist Team Helping Homeowners Take Advantage of Federal Program That Helps Avoid Foreclosure

Area homeowners are turning to Realtors like the Holmquist Team to take advantage of a federal program designed to help homeowners who are drowning in debt and facing foreclosure. That program is slated this year.

New Jersey ranks fourth in the nation in homes with delinquent mortgages, according to the Otteau Valuation Group, a well-respected real estate appraising company. One in six home loans is “underwater” in New Jersey. Homeowners in this situation, however, should be reaching out to knowledgeable Realtors who can help them navigate various private, state and federal programs to help them reduce their loans or sell their home before losing it foreclosure.

Homeowners who are overwhelmed by their mortgage should contact the Holmquist Team or another Realtor to explore their options before they lose their home to foreclosure.

Short sales are one tool to get homeowners out from under an oppressive mortgage. For qualifying homeowners, a group of federal programs called Home Affordable Foreclosure Alternatives is an excellent way to get out of a home you can no longer afford and still be able to move on with your life. Under the HAFA program, you may be able to sell your home through a short sale or through a deed-in-lieu of foreclosure, where you give the home back to the bank.

The program applies to homes that are principal residences with a mortgage under $729,750 that was obtained on or before Jan. 1, 2009. The homeowner also has to be able to document financial hardship.  The program applies only to homes with mortgages owned or guaranteed by Fannie Mae and Freddie Mac, although there are other programs available for in-trouble homeowners with VA, FHA and USDA mortgages.

Qualifying has excellent benefits:

• You’re completely released from your mortgage debt after the property is sold,
• A HAFA sale has less negative impact on your credit score than a short sale,
• HAFA gives you $3,000 in relocation assistance.

While there’s some discussion of the program being extended, right now the program is slated to end Dec. 31, 2012.

If you’re a homeowner in trouble, now is the time to make a move. You should start by contacting The Holmquist Team or another Realtor who is knowledgeable in distressed sales and in HAFA.  He or she can help you understand what options you have, what you need to do to get your home ready to sell and, perhaps, where you can live next. An agent also should have the proper contacts to work on your behalf with lenders and attorneys.

You may also wish to attend a workshop on short sales and other tactics to avoid foreclosures that is slated for 7 p.m. March 5 at the Publick House Restaurant in Chester. It will feature Kelly Holmquist, broker-sales associate and leader of The Holmquist Team of Keller Williams Towne Square Realty. Also featured will be Martin D. Eagan, a Morristownattorney who specializes in distressed real estate sales. The pair will discuss the HAFA program and other alternatives. Information is available at www.theholmquistteam.net or by calling the office at (908) 867-7109.

There are many alternatives to having a home taken by foreclosure, but homeowners need to give themselves ample time to investigate and take advantage of those programs.  Those who need to get out of a mortgage that has them “underwater” should call a Realtor today to explore their options.

 

Be Careful Of This Blast From The Past

Lately, The Holmquist Team members have been noticing some advertisements for mortgages that make us feel like we’re back in the early 2000s.  I’m referring to the so-called hybrid loans that promise a very low fixed mortgage rate for a few years, and then become an adjustable-rate mortgage.

Be careful. Don’t let a mortgage calculator lull you into a mistake.

If you’re considering buying a home, an adjustable mortgage might work for you or you may be better off with a fixed-rate mortgage, especially with rates as low as they are. The trap, for many people, is their credit score and the belief that they can buy cheap now and refinance or sell before the mortgage balloons. A Holmquist Team Realtor can help you avoid the trap.

Your house-hunt should begin at your dining room table with some planning and it shouldn’t be impacted be promises of extra-low interest rates. As in everything else, if it sounds too good to be true, it probably is.

There really hasn’t been a better time in a generation to buy a home if you can afford it. I know: Realtors say that all the time. But, with interest rates low and a good selection of homes, it’s very true. If you’re thinking about it, here’s how to plan it:

• Start by looking at your financial situation, including your credit. Lending standards are high, these days. Get copies of your credit scores from the three reporting bureaus and make sure there are no errors or issues. Look at your own financial situation. How secure is your income? What can you afford? A financial planner or a Realtor can help you with this if you need it.
• If you decide it’s time to be a homeowner, talk with a financial planner or a Realtor if you haven’t already.  They can help you determine whether you’ll qualify for a mortgage and help you figure out what you can afford. If you can’t qualify, don’t lose hope. Find out what needs to be fixed and spend the time you need fixing your credit, waiting until you’re earning more or doing what you have to do. Home ownership isn’t something to be rushed, and it simply isn’t for everyone. You may never recover if you get in over your head.
• If you can qualify and you know what you can afford, shop around for a mortgage. Some experts suggest talking to three banks and three mortgage brokers. A Realtor can help you find banks and brokers with good programs. Look at interest rates, closing fees, other costs and programs. An adjustable might be right for you, but be careful and review all your options.
• Once you’ve prequalified, work with a Realtor to find the home that’s closest to your dreams. You need to move carefully, but quickly.
• A warning: Once you qualify for a mortgage, don’t do anything that will change your status. The most common mistake is to take on new debt. Avoid new credit cards, lines of credit, major purchases and be sure your bills are paid on time.

It is truly a great time to become a homeowner, but do it the right way. Plan it carefully and find a home where you and your family can comfortably grow, create memories and become part of a community while enjoying the financial and taxation benefits of home ownership.   Give us a call or shoot us an email today and we can show you why homeownership is such an integral part of our American Dream.