Sharon's New Blog

If you're looking to get a home loan here are a few things you should consider. If you're self-employed the rules have changed considerably and not just for mortgages but also personal loans too. Some lending institutions are now requiring self-employed borrowers to provide documentation from assets to income and the documented income is then checked with IRS records. "It used to be nobody checked your IRS records," says one source in the mortgage industry who agreed to be interviewed about the inside changes but could not be named.

Another big change has to do with what borrowers may have done in the past. "When Fannie Mae and Freddie Mac discover loans where the borrowers misrepresented their income, the agencies are requiring the lenders to repurchase the loan from Fannie Mae and Freddie Mac. In turn the lenders then have the option to go after the borrowers in the form of foreclosure—even if the loan is not delinquent," says the source. There's no statute of limitation for fraud. The source says, normally, if the loan is current, they won't pursue the borrower. One major lending institution hired a company to go through all its stated-income loans looking to see if there was fraud. "At first they started with all the delinquent loans and then they moved into performing loans. Then they started requiring lenders to buy back all these loans which put lenders out of business. That closed down some shops," the industry expert said.

The problem that many self-employed borrowers have today is that they need to be able to show that their business is legitimate in order to get the loan. The typical documentation includes, but is not limited to, a Web site, CPA letter, 411 listing, and business license. And if you're not self-employed, the rules for loans are tight as well—bigger down payments and better documentation are a must. While some lenders will allow as little as 5 percent down, most are looking for more than that. Everything you submit to a lender is now being double-checked.

Doing your part to make sure that your finances are in order prior to applying for a loan ensures a smoother process. Here are just a few helpful tips:

1. Make no major purchases such as a car prior to applying for a loan
2. Have complete documentation of your income
3. Check and clean up your credit before attempting to borrow
4. Reduce the number of outstanding credit options: close unused credit cards
5. Remain current on all your loans

For any questions regarding the real estate market,do not hesitate to contact me.

Sharon Seymour

America Has Ambition

Lately, I have been approached by many of my clients, who have expressed concern over not only the real estate market, but the US economy as a whole.

As many of you know, I immigrated to America on my own with 3 very young children 10 years ago because I believed America to be the best country in the world to raise my children in, and because I knew that America has ambition. There are no limits to what my children can be when they grow up by living in America. And there are no limits to what any of us can be or do by living in America.  The opportunities are endless.

As a Real Estate professional, I can confirm the economic reports that the property market bottomed out 4- 5- months ago. We can see this in the numbers and the sales that are currently taking place. I believe that things have stabilized and that now we are going to see a bit, by bit, by bit increase in home sales and purchase prices. (this has already started.)

The latest economical reports have confirmed to the outside world that the USA is now officially out of recession. But we still have a long way to go and hopefully don’t make the same mistakes again.

We will also now start to witness incremental slow progression where peoples’ confidence comes back, where their attitudes become positive again, and where people stop focusing on what the government is doing and start to focus on themselves.

If you are all worked up on either side of what is going on with the government debates right now, let me tell you this – there is no government agency that is stronger than the ambition of the human heart, and the will to survive. And you need to understand that no matter what your positions are right now, goverments are never going to want, or be able to contain that. I have been extremely fortunate in coming to see and to know that there is not a cage strong enough to contain the ambitious spirit of the American people. You just need to know it, and see it – if you haven’t travelled outside of the USA, do so, and you will see and feel it for yourselves.

So when I am approached by my clients with these concerns, I tell them, “it is way too easy to get despondent when you turn on the radio or the television and hear about the negativity of what is happening around us on a daily basis. But from someone who has travelled to many countries and who has lived in Africa for most of her life, America has far fewer problems than most other places in the world. Be thankful you live in America.  I know I am.  And try not allow the negativity that you are bombarded with on a daily basis, to impact your ambitious spirit and prevent you from achieving your dreams and goals.”

It’s a GREAT life !!

Sharon

Comments:

Sharon, I like your comments, and I agree the American spirit is strong and will overcome any challenge. But speaking only for me, I am concerned about the belief that the economy is turning around. I am afraid that the government has artificially stimulated the economy, and once the piper has to be paid the economy will tank again. Many groups both corporate and individual have squelched their income only to be helped out by the government. I have ambition, but get discourage when the next guy is working half as hard and spending twice as much yet still getting a hand up. These are challenging times and I get frustrated that I have been a conservative spender yet others are able to take advantage of financial programs that I cannot. I do agree that America is still the land of opportunity, but I think it is important for us to protect a way of life that will preserve prosperity. If I make a poor investment...shouldn't I pay for that somehow? I wouldn’t expect my agent to cover my loss...or the government??? Therefore I hope agents like you will encourage buyers to stay within their means and purchase a home and not a landmark for prestige. I pray that God will restore America to the place where she is a beacon for all countries to establish their benchmark. God bless America!!! Keep up the good work Sharon, gernst

I’m not a Harvard trained economist, I’m just a salty business woman who’s been around the block a few times or maybe has been put through the ringer, but it seems to me that we bottomed out about 3 ½ months ago.

As I travel around talking to brokers and seeing the general flow of business it appears that the market has stabilized for now. We do still face some challenges with high unemployment, increased national debt and the Alt-A mortgages starting to default, but I believe we’ve entered a period of relative stability in the housing market and the larger economy.

It appears that people have gotten over the initial shock, adjusted their lifestyles and begun living within their means, and are now beginning to make sensible purchases again.

I think we are going to have this battle go on between inflation and rates for the next year and a half.  And I think that what we are going to see is an uptick under inflation and adjustments being made to the rates.  I am talking about the Feds - they are going to have to make these adjustments because if the rates go into a runaway place, we are going to stink up the joint all over this economy.  And the Feds do have the ability to tweak this and to be able to manage this through for the next 18 months. 

What this means is that WHEN somebody buys real estate, is very important.  Somebody who bought in April, is doing better than someone who bought in June.  What is the difference in the rate? We are seeing a full point - that is a big number.   

We have more interest rate changes coming. So if you are going to make a move, NOW is the time to get it done.  People have been waiting for the bottom, well it looks like the bottom has been pretty well established by the shear volume of the transactions.  The bottom is always established by people buying!! 

BIG NEWS (According the NAR)

The Real Estate Market IS Moving !!!

The U.S. is in position to sell 4.68 million homes this year, making 2009 in the top 5% of homes sold in U.S. History.

If you watch the nightly news, listen to the politicians and surf the net on a regular basis, you might as well get it over with and have a complete and utter meltdown. Although I have a desire to be informed, do my research and stay current with the market trends, I’m developing an allergy to the media and the messages from these outlets. And as much as I try to stay positive and focus on my attitude, I found myself recently being surprised with good news.

Did you know that 30 % of homes in the USA, are FREE & CLEAR.  What does this mean? - A free & clear home is NOT in jeopardy of foreclosure. 

So that means, that 70% of the homes in the USA have a mortgage on them.  Of this 70% - 97.2% of these homes, are NOT in foreclosure. 

Can you imagine this being the lead story on CNN tonight?! 

Things aren't nearly as bad as everyone thinks. 93.8 % of the people who actually have a mortgage, are current on their payments.

So why are we feeling so much heat & pain? - Why does it feel so bad?

Because this number of properties is still a large number of homes, and these are the properties that are hitting the market right now.  And the people who own their homes free & clear, are having to price their homes along with the people who are facing foreclosure.    

Some facts to know:

• More than 1000 banks closed in 1930 – only 14 U.S. banks have been taken over in 2008
• There are 76 million households in the U.S. that own their home - 24 million of these homes are free and clear
• There are 52 million homes with mortgages - 97.2% of these are not in foreclosure, 93.8% of these homes are current on their payments
  

On a sobering note:

• Over 20% of homeowners with a mortgage owe more than their home is worth
• 40% of all foreclosures are non-owner occupied

How did we get here?

Decade    Homes Sold High    Homes Sold Average

1970’s      3.9 million               3 million
1980’s      4 million                  3.3 million
1990’s      4.9 million               3.9 million
2000’s      7.1 million               5.6 million
Resale numbers – the above does not include new home sales.

Sources: Wall Street Journal / Moody’s Economy.com / RealtyTrac / NAR / Forbes

It's a GREAT life!!

Sharon 

                Our Next Upcoming Short Sale Property Tour

Interest rates are low & inventory is high - This is a perfect time to buy real estate, especially if you are a first time home buyer and can take advantage of the tax credit of up to $8,000.

Be sure to reserve your seat TODAY on our next tour in the Fort Collins area.

March 28th, 2009- departing from Loveland at 1pm & Fort Collins at 1:30pm   

Please call Sharon at 970-310-3095 or email Sharon@usaKeyRealty.com to reserve your seat.  Reservations are required as space is limited.

Hope to see you there.