In the news you will hear the markets up, the markets down,  housing sales have inclined or housing has declined.  So the question becomes what is the answer, how is the real estate market doing? The answer is it depends(yeah i know the perfect politically correct answer), it depends on your local market.  For Instance if you are living in Nevada  home sales have increased from last year,  the homes there have finally reached the appropriate price levels for investors and home buyers to buy back into the market. 

So why do I tell you this,  I am encouraging you to come here to check on our local stats in the Dekalb Sycamore area.

In the DeKalb,  the last three months the average sales price $141,000, the average time on the market was 116 days, and the housing supply is at 12.66 months(this means it would take over 12 months for all the homes to sell, if no other home came on the market.) from 3 months ago prices were at $165000, 143 days of market time, and a housing supply of 22 months.

In sycamore, the last three months, the average was $181,250, with an average market time of 106 days and a housing supply of over 15 months. the previous 3 months had an average sale price of $177,250 with an average market time of 200 days and a housing supply of over 29 months.

So what does all this mean?  means that we are still in a buyers market(anything over 10 months is considering a buyers market and a declining market.  both Dekalb and sycamore have improved their market by selling more these past 3 months than in the previous 3 months.   Dekalb average price dropped where sycamores rose a little, this doesn't mean much considering that summer months are typically the highest selling months in our market(Feb-Sept).   with programs like the $8000 tax credit it should prove interesting to see if this help maintain the incline in the market we have seen the last 3 months.   either way we can watch together cause i will update these stats monthly.

I walk several neighborhoods, handing out flyers that give local markets stats for those neighborhoods. What I observed in the last few months is rathering troubling to me.  I am watching owners just walk away from their home. I understand and respect that this is an emotional and physical stress we would all rather do without.  The purpose of the blog entry is to inform that their are other possible options out there beside just walking away from your home.

• Do Nothing – If a homeowner does nothing, they most likely will lose their home at sheriff’s auction. Loan applications generally ask if the applicant has ever been foreclosed upon. Credit reports also disclose this information. This will stay on your credit report for up to ten years.
• Payoff/Refinance – Completely paying off the entire loan amount plus any deficient amount and fees. This is usually accomplished through a refinance of the debt. New debt may be at a higher interest rate and there may be a prepayment penalty associated with the loan, due to recent default.
• Reinstatement – Paying the entire default amount plus interest, attorney fees, late fees, taxes, missed payments and fees. This option will allow you to keep your existing loan and terms, if the lender allows.
• Loan Modification – Utilizing the existing mortgage company to refinance the debt or extend and/or change the terms of the loan.
• Forbearance – Lender may be willing to arrange a repayment plan based on the homeowner’s financial situation. The lender may be willing to provide a temporary payment reduction or suspension of payments and/or penalties. Information will be required from the lender to show that you are able to meet the new payment plan requirements.
• Partial Claim – A loan from the lender to consolidate and include back payments, costs, and fees.
  Deed in Lieu of Foreclosure – The owner simply gives the property back to the bank instead of the bank foreclosing. This is a “voluntary” foreclosure, and still appears as a foreclosure on your credit report for up to ten years.
• Bankruptcy – This option can liquidate and/or re-organize debts and/or allow more time.
  Chapter 7 (Liquidation) completely settles personal debts. Mortgages are not included without a complete foreclosure process
  Chapter 13 (Wage Earner Plan) Payments are made toward a plan to pay off debts or portions of debts in 3 – 5 years.
• Sale – Homeowner may sell the home without lender approval for a conventional home sale. If the property has equity the sale will close, the lender paid off, and the foreclosure is gone.
• Short Sale – Also known as a pre-foreclosure sale can be negotiated with your lender by your real estate professional, or a third party company, if what is owed is more than the property’s market value.

Please before you do anything talk to real estate professionals, accountants, tax person, attorney, so you can make the best decision for you and your future.

There has been lots of questions about the tax credit for First Time Home buyers.  The video below gives you a detailed explanation of this credit!

 Summary of the video

• First time home buyers are identified as a person who has not owned a home as their primary resident for the past 3 years
• Qualifying homes are new homes, existing homes, condos or townhomes
• Individual will only qualify for the tax credit as long as the home they is their primary resident and haven't owned a primary in the last 3 years.

Running the Numbers

The tax credit is 10% of purchase price up to $8000. The amount of money you can qualify for is related to amount of money you earn.  below is a breakdown of how it works

• Single Home Buyers earning $95,000 or less qualify. if you make $75,000 or less you qualify for the full $8000. The credit phases our gradually between $75000and $95000 of income. For example if you earn $85,000 you will earn up to half the credit or $4000.
• The same rate applies to Married and Joint buyers whose income limits double to $150,000 - $170,000.   The credit phases out gradually between $150,000 - $170,000. for instance at $150,000 and under you would receive up to the full $8,000 credit, while you if you are making $160,000 you will earn up to the $4000 credit.

 Couple more points to consider

• This credit is for First time home buyers that purchase a home Between January 1 2009 and December 1 2009.
• Historically low interest rates make this an amazing time to buy.
• If you are committed to purchasing a home this year consult your Certified CPA to see what your options are with this credit

If you are looking for this opportunity please call your trusted Real Estate Consultant today.