Last week, I had an interesting, but sadly, ALL TOO COMMON occurrence take place.
An agent made an appointment with the local showing service company we use here, MAPASS on one of my listings..
So. a couple of days later, the agent calls me and tells me, almost breathlessly, "I'm gonna get an offer on your listing today!".. You'd think I haven't seen an offer in over a year with the "enthusiasm" she had.
True enough, I get the offer.
Without a preapproval.
Come on, what the heck? Like I'm gonna get my seller and recommend they sign that offer. Yeah. ooookay...
Let me ask, in this day and age, what listing agent wouls recommend an offer to their listing clients from a buyer who doesn't submit a written preapproval from a reliable and "known" lender or mortgage institution?
Better yet, what showing/buyer agent even goes around with buyers like that?
if you are a buyer agent, and you get an offer from an unqualified buyer, and suppose for a moment, you are dealing with "Igor Idiot' real estate LISTING agent, who gets his sellers to sign the offer, you have just done a terrible disservice to the buyer!
So you all go through the motions. The buyers plunk down a couple of hundred dollars on a home inspection on a house they will never buy. They lose money and time, YOU as a buyer agent lose money and time, in short, everyone does..
Some agent YOU are!
Yet, this sort of thing happens ALL the time, believe me. I can't believe I have to even ask for a preapproval when I get some of these offers..
Just unbelievable..
Are the agents nervous about asking for one? Do they figure they can get "practice"? Practice in what? Burning gas? Wasting time? Looking like a "Realtor(R)"?
REALLY unbelievable...
So, the thought occurred to me, should I demand a preapproval letter or, for those "cash" buyers out there, proof of funds, FIRST, BEFORE THE SHOWING?
It may drive down showings. What I'm really worried about is, doing this may "offend" some buyers and their agents into NOT showing my listing.
But then on the other hand, it's okay to show my listing to totally unqualified buyers?
Something has to give, wouldn't you say?
I'm here, and I ain't going no place... What do YOU think?
The countdown begins
I don't think a lot of first time homebuyers realize this; that the $8,000 tax credit is NOT a "forever" event. It will end in almost 4 months!
So if you REALLY are looking to take advantage of this program, probably one of the best I've ever seen in all my 25 plus years of real estate experience, call me and let's get the ball rolling!
I will post monthly as we get closer to the deadline; of course, I always post updates and changes.
NAR has reported that as many as 47% of possible
first time buyers are not even aware that this credit exists, but that's NOT true for readers of THIS BLOG, right?
I've been referring clients and the general public to this site so much I should have posted this link.. Ah.. how complacent we get with our blog when we get busy LOL..
http://www.federalhousingtaxcredit.com/2009/index.htmlIt's a great resource and link for reference. If you're looking for more in-depth information, call Deven Ewing @ Prospect Mortgage. The man's a walking information source!
Email him or call Deven @ 774-239-5969
Each week, certain events continue to amaze me…
This week, I approached a couple of owners who are in danger of foreclosure; there seems to be a mass wave of a hypnotic trance that “immobilizes” the majority of them; they won’t call their lender to discuss their situation. If they do, and the results are unfavorable, they won’t consider a short sale. They won’t seek guidance or advice; pretty much, with the vast majority of them, they bury their head in the sand and act like eventually, this will go away..
It won’t happen that way. I can understand the “paralysis” these folks go through; however, a time for any action MUST be taken.
Foreclosure is THE worst option anyone takes. Maybe you won’t care about this now, but you;’ll care later. Maybe in 3 years, 5 years, 8 or even more…
You can say anything you want, but the facts are the facts…Eventually, you should care.
… especially when there are SO many resources to help you too..
Chances are, your own lender doesn’t want you to wind up in foreclosure…
It’s like talking to the walls with some of these folks. It’s so frustrating to see this pattern of “self destruction”, repeated on a daily basis.
And now, did you hear the news? “They’re” expecting a whole new wave of foreclosures, a THIRD WAVE, of foreclosures, to come crashing down…It’s supposedly going to be MORE DEVASTATING, MUCH MORE DEVASTATING, THAN the last two.
It’s expected to be SO bad, that I personally am get involved in the short sale and reo aspect of sales much more intensely than ever. I swear, I try, I really do; I try to tell people NOT to slide in foreclosure. At least give it a good fight. Don’t do the disappearing act! Don’t go through the embarrassment of having your name splattered all over the “Notices” section of the local paper (They do print upcoming foreclosure actions, you know).. Wanna be secretive? Do a short sale!
Let me repeat .. If YOU want the Whole World NOT to Know Your situation, THEN DO A SHORT SALE! You’re going to leave the house one way or another, if you can’t stay! Might as well leave with your dignity intact!
Maybe you’ll even be able to buy another home in a couple of years. Start over again. AT a better market condition for those buying.
VERY UNLIKELY IF YOU GO WITH THE FORECLOSURE ROUTE!!
Places and cities I personally have NOT seen get bank owned and short sale listings are now starting to creep up.
There’s NO other way for me to say this.
I want to “bust” all the misconceptions and fallacies people may have or may have heard of in terms of short sales versus foreclosures. If you have a problem, call me at 508-365-3581 or email me and let me see if I can help you. Anywhere in the country. I will get you the help you need through one of my referral networks and contacts.
Sure, I may make a commission or a referral fee.
BUT YOU ALSO GET ME!
Most likely, you won’t pay anything, anyway…
Honestly, I know now how “Ben” felt being surrounded by the zombies in the original classic horror movie; “Night of the Living Dead”..
I don’t mean to be nasty, and I am trying to say this with a LOT of LOVE, but the frustration of watching people totally give up is very very sad; it “gets” to me.
For every person I may anger with this post, I hope 5 others get the help, advice, and solution they may be able to get.
Seriously ...
For any buyer, savvy ones, first time buyers, "trade up" buyers (ESPECIALLY trade up buyers!) and "trade down" buyers, investors, etc, etc, etc, THIS IS A GREAT TIME TO BUY!
The interest rates alone at least warrant a good look at the market!
I suppose the bug concern with many buyers currently sitting on the fence is "how much lower will prices go?"
Have you been analyzing the prices? Have you ACTUALLY been compiling data? Or are you simply going by what's being said in the media?
No doubt about it, prices HAVE come down, but there is a point to which the downward trend begins slowing down, total stagnation occurs (a price "freeze", for lack of a better term, and then, as confidence starts coming back, the cycle reverses itself.
The process of reversing may be slow, at a medium pace, or fast and hard. No matter what, THAT's when you start kicking yourself in the butt and scream in despair, "I should've"...
I'm not making this up. I've seen people scream these three words right to my face! Some even blamed me for not pushing them!
Pardon me for not being pushy! Another stereotype squashed!.
"I should've," That hurts. It's not as bad as "I couldn't", or "I wasn't able" "I should've", means you didn't take that chance and you regret it.
Sure, it's risky, but then again, is it as risky as the stock market? Gold? Other investments? What if you simply need a place to live? Is it better to pay rent? Have you checked this out? Could you in fact, be paying more in rent presently than a mortgage payment? Do you think things won't turn around? Ever?
In some areas, prices overall have remained stable and even appreciated, in spite of the "gloom and doom" you may be listening to in the news.
If anyone wants an absorption rate study of a certain town as a way to judge the "health" of the market, I tell you what; I want to earn your trust. Make an anonymous comment on this post and I will post the study for you and you can download it. Of course the absorption rate study will be "public"; anyone will be able to download it, but what do you care? No one will know who you are. If you'd rather be private all the way, then contact me here and I promise I will send you only the absorption rates by email and that's it!
I have a client who, through BuyWorcesterNow, was able to get 4.5% interest and he is buying a great property at a great price. Will YOU be able to likewise? I don't know. But It's worth a shot, I would say.
And I haven't even begun going through the tax advantages and the tax credit available.
Fear can be a great friend, or a bad enemy. Just ask THIS guy...
The City of Worcester
presents
Meet the Lender
Tuesday, November 18
5—7 p.m.
NeighborWorks HomeOwnership Center
674 Main Street, Worcester
Buying a home? Looking for the best mortgage? Attend this one-stop
shopping opportunity to meet 14 different lenders. Learn about Buy
Worcester Now, affordable mortgage products with below market interest
rates, first-time homebuyer assistance, homebuyer courses, lead paint
assistance, down payment assistance, purchase and rehab loans, and more.
Participating Lenders: Bank of America, Bank of Canton, Bay State
Savings Bank, Commerce Bank & Trust, Commonwealth National,
DCU—Digital Federal Credit Union, Flagship Bank, Grafton Suburban
Credit Union, MassHousing, Sovereign Bank, Southbridge Savings Bank,
Spencer Savings Bank, Webster Five Cents Savings Bank, Worcester Credit
Union
Call 508-799-1175 for more information.
For the benfit of those looking for great financing options when looking to purchase a home in Worcester, I am presenting to you the text of a pdf file I just received from the City of Worcester.
You can also download the RevisedQuestionandAnswers.pdf
, and the RealtorContactList.pdf
..
Questions & Answers
Q. What is Buy Worcester Now?
A. Buy Worcester Now is a private/public partnership to preserve and promote homeownership in the City of Worcester by offering potential homebuyers the best and most responsible mortgage products for purchasing a home in Worcester today. Prospective homebuyers must secure a mortgage from a participating bank or credit union to qualify for the Buy Worcester Now Program. Participating banks and credit unions have pledged more than $90 million in available Buy Worcester Now mortgage loans.
Q. Which lenders are participating in Buy Worcester Now?
A. More than 12 local banks and credit unions are offering qualified Buy Worcester Now mortgage products. A listing of Participating Lenders can be found by visiting www.buyworcesternow.com. We encourage buyers to visit the web site to review and research available Buy Worcester Now loan programs from our Participating Lenders. Programs may vary and it is important for buyers to choose a product that meets their needs. Participating Lenders will walk buyers through the process by taking into account a variety of factors, including credit history, mortgage amount, amount of monthly payments, and income.
Q. How do I participate in Buy Worcester Now?
A. To participate in the Buy Worcester Now Program, buyers must secure a mortgage loan through a Participating Lender. If a prospective buyer is employed by any of the Participating Employers, the buyer may be eligible to receive additional financial assistance toward their mortgage. Once a loan is secured through a Participating Lender and a closing takes place on a home in Worcester, the buyer will be eligible to receive post-purchase rewards and savings from qualified Participating Partners. The Participating Lender will provide the buyer with a form at the time of the closing to redeem the savings.
Q. What is the benefit of Buy Worcester Now?
A. Buyers who purchase a home in Worcester can take advantage of discounted services and mortgage products from participating banks and credit unions, in some cases, at rates between ½ and ¼ point below market rates with no or low down payments, lower or no mortgage insurance payments, and employer mortgage assistance. Buyers can learn more about the different lending packages by visiting www.buyworcesternow.com. Buyers who secure a mortgage through a Participating Lender will be eligible to receive additional rewards and savings through the Buy Worcester Now Program.
Q. Who might be interested in Buy Worcester Now?
A. Buy Worcester Now is ideal for first- or second-time homebuyers seeking to purchase a condominium, a single family home, or a 2-4 family home in Worcester as their primary residence. A listing of available properties for sale in Worcester can be found on the Property Listing Page at www.buyworcesternow.com. Buyers must secure a mortgage through a Participating Lender to qualify for the Buy Worcester Now Program.
Q. How are retailers and cultural venues participating?
A. Area retailers and cultural venues have agreed to provide additional incentives, from savings on cable/telephone/Internet service to home furnishing consulting to tickets to the theatre for qualified Buy Worcester Now members. These rewards and savings will be available post-purchase for buyers who secure a mortgage through a Participating Lender and purchase a home in Worcester. Participating Lenders will provide a form to buyers at the time of closing so that buyers can redeem their savings.
Q. Are there income limits for the Buy Worcester Now programs?
A. Buy Worcester Now helps potential homebuyers select a lending package that meets a variety of income levels and needs through trusted and responsible banks and credit unions. Many of the featured Buy Worcester Now loan programs aim to bolster the success of households earning at or below 135% of the area median income, which is currently $96,795. However, Buy Worcester Now Participating Lenders offer a range of home purchasing programs for households of varying incomes. To learn more about the different loan programs, visit www.buyworcesternow.com.
Q. Why should homebuyers buy in Worcester now?
A. The current housing market has many homebuyers waiting on the sidelines before making a decision to buy a home, but now is the perfect time to buy in Worcester. Worcester offers a range of housing stock, competitive sale prices, a quality public education system, and strong neighborhoods, as well as financing options ranging from no or low down payment, no or lower monthly mortgage insurance payments, discounts on legal fees, and ½ to ¼ point discounts on 30-year fixed mortgage rates. Employees of local companies also have an opportunity to
purchase a home closer to their place of employment (and receive financial assistance to do so).
Q. What about market stability?
A. A recent study completed by California-based HomeSmartReports.com and featured in Banker and Tradesman found that Worcester is among the top 10 low risk home markets in the nation because of its stable performance over time. Buy Worcester Now combines responsible financing programs with strong community benefits to provide a homebuyer with more confidence.
Q. How can I find out if my employer participates in Buy Worcester Now?
A. Prospective buyers can find a list of Participating Employers at www.buyworcesternow.com. In some cases, employers will contribute a dollar amount (up to $5,000) toward the purchase of an employee’s home, which will then be matched dollar-for-dollar by the Commonwealth of Massachusetts. Please note that specific loan programs will qualify for the dollar-for-dollar match.
Q. How can homebuyers learn more about Buy Worcester Now?
A. First-time homebuyers should contact the NeighborWorks HomeOwnership Center at 508-791-2170. For general information about the Buy Worcester Now Program, call 508-799-1902. To contact a Participating Lender, visit www.buyworcesternow.com to find contact information. Each loan officer will have specific and detailed information relative to available Buy Worcester Now product offerings.
I personally have attended the first BuyWorcesterNow meeting The City of Worcester has held for real estate agents, and welcome anyone who is considering the BuyerWorcesterNow program. You can begin your home search for Worcester here, by clicking on the link and punching in your criteria.
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