Measure to help bring stability to home values and accelerate sale of vacant properties

In an effort to stabilize home values and improve conditions in communities where foreclosure activity is high, HUD Secretary Shaun Donovan today announced a temporary policy that will expand access [...]]]> HUD TAKES ACTION TO SPEED RESALE OF FORECLOSED PROPERTIES TO NEW OWNERS

Measure to help bring stability to home values and accelerate sale of vacant properties

In an effort to stabilize home values and improve conditions in communities where foreclosure activity is high, HUD Secretary Shaun Donovan today announced a temporary policy that will expand access to FHA mortgage insurance and allow for the quick resale of foreclosed properties. The announcement is part of the Obama administration commitment to addressing foreclosure. Just yesterday, Secretary Donovan announced $2 billion in Neighborhood Stabilization Program grants to local communities and nonprofit housing developers to combat the effects of vacant and abandoned homes…

…The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner. To protect FHA borrowers against predatory practices of “flipping” where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following general conditions:

· All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.

· In cases in which the sales price of the property is 20 percent or more above the seller’s acquisition cost, the waiver will only apply if the lender meets specific conditions.

· The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.

Specific conditions and other details of this new temporary policy are in the text of the waiver, available on HUD’s website at: http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.

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You’re ready to take that big step.  You have enough in your savings for a down payment and you’ve decided it’s finally time to own your home.  Buying a home is a complicated and even frustrating experience for everyone, but for first time buyers there is all sorts of added pressure.  [...]]]>

First Time Home Buyer

You’re ready to take that big step.  You have enough in your savings for a down payment and you’ve decided it’s finally time to own your home.  Buying a home is a complicated and even frustrating experience for everyone, but for first time buyers there is all sorts of added pressure.  Just remember that veteran home buyers face the same concerns and confusion that you do – it’s just they have a little bit more experience coping with that pressure.

Here are a few tips if you’re just starting out in the property game.

Check Your Finances

You want to make sure that your finances are in order and that you have enough money to proceed with your dream of owning your own home.  It is important that you take a look at your credit history before you apply for a mortgage so that you can clear up any mistakes or irregularities.  You also want to have a good idea of what you can afford before looking at properties.  You only want to look at homes that are within your budget and knowing what you can realistically afford before you start looking and sticking to that budget may save a lot of disappointment down the road.

Do Your Research

Before you begin house shopping, you need to know what you’re looking for.  You need to know what kind of house and area you want to live in.  Prepare a list of questions that you could yourself when looking at a potential property.  These questions might include:

Is the neighborhood safe?

Is the house big enough for our needs now and in the near future?

Are there schools?

Is it close to work?  If not, how much time will I spend commuting?

Is there public transportation?

What condition is the house in?  What repairs will I have to make right off the bat?

What about re-sale value?  Will I be able to make some money when I sell the house in a few years?

If you are planning on applying for a mortgage, you’ll also want to do some research on the different types and terms of mortgages that would be available to you.

Find the Right Real Estate Agent

Whether you’re buying or selling, it’s important you also do your research where a real estate agent is concerned.  A good real estate agent will be knowledgeable of the housing market in the area you’re looking in and he or she will be able to answer most if not all of the questions you have about this process.  It is important to build a strong relationship right from the start – it will make things much easier down the line.  You’ll want to make sure that you find an agent that will keep your best interests (not the sellers or the agent’s own interests) first.

Put that Offer In

This can be a difficult part of the process for both the buyer and the seller.  The buyer does not want to overpay or go beyond his or her budget, but at the same time token a seller does not want to give away the home.  There are other factors to consider, especially a contract that outline what will and will not be included in the home (i.e. appliances).

Home Inspection

In some places this inspection occurs before you sign the final deal, while in others it is after it is finalized.  This is an important step – you want to know exactly what you’re getting yourself in to when purchasing a home.  If there are problems with the home, you want to know that right off the bat, not a few months down the road.

Closing the Deal

Closing (also referred to as settlement) is when the ownership of the property is transferred to you (the buyer).

What about buyer’s remorse?  A lot of people experience it.  You love your home when first see it and you can’t wait to move in, but once there you begin to have your doubts.  Did I pay too much?  Can I afford to do this?  Is this really the perfect house or should I have held out a bit longer to see if anything else came on the market?  These thoughts go through the minds of almost anyone who has bought a home at some point, but they can certainly be overwhelming for the first time home buyer.  Just trust your instincts and try to remember what made you fall in love with the house in the first place!

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