West Savage Real Estate Blog

Just Sold by Chad & Sara

Sold in 28 Days!

15410 Barium St NW

Another Wave of Foreclosures Predicted / Short Sales

It has been long predicted that another wave of foreclosures is expected to hit our housing market in the near future.  The Southern Twin Cities Association of REALTORS recently reported the following:  

Some economic observers are predicting another wave of foreclosures will occur later this summer or in the fall. That's because lenders that have held off on foreclosures as part of President Obama's plan will now move aggressively to clear the backlog of troubled mortgages. 

Rising foreclosures will further depress home values, says Mark Zandi of Moody's Economy.com, who calculates that 15.4 million homeowners (one in five of those with first mortgages) will be underwater. 

Seth Wheeler, a senior adviser to Treasury Secretary Timothy Geithner, says the government is "unlikely to implement another moratorium."  But Wheeler says the government plans to put in place some programs that encourage lenders to try some alternatives to foreclosure. 

And trying alternatives to foreclosure they are doing!   Banks are trying some interesting techniques to keep people in their homes and prevent a short sale, even when the homeowner no longer wants to own the property.  

Most recently, some banks have given sellers the option that unless they sign an agreement whereby the seller agrees to make partial payments on their home for a set period of time, the bank will refuse to look at any offer on the property (in a short sale situation).   This scenario really holds a seller against a wall.  They cannot sell their home without bank approval, and the bank won't approve the short sale unless the seller agrees to sign the partial payment plan.   It's non-sensical.  In cases where the seller is far in arears on the mortgage payments, the bank is simply delaying the inevitable. 

All we can do as realtors is continue to try to market short sale properties and work diligently with the bank to get the offers approved.  Depending on the bank and the amount still owed on the mortgage, this task is often times nearly impossible.  But miracles do happen, and until the housing market turns around, or at the bare minimum, reaches the point to where it once was before the decline, we will continue to do our best to help sellers avoid foreclosure by listing and marketing short sale properties. 

More information on the status of short sales in relation to the market can be found on this video.  For a list of homes we currently are offering for sale, including short sales, click here. 

Just Sold by Chad & Sara

Sold in 24 Days!

685 East 143rd Street

Just Sold by Chad & Sara

Sold in 82 Days!

 

1881 Cardinal Drive    

Just Sold by Chad & Sara

            Sold in 28 Days!

4632 Bulrush Blvd.

 

    

Just Sold by Chad & Sara

     JUST SOLD!

 

 

 

 

 

 

 

                                                                                 5040 Woodland Court

Home Staging - Dos and Don'ts

By Sara Huebener

It seems that home staging has been hot button over the past couple years.   There are staging companies galore, and many tout that sellers who stage their homes can net upwards of 10% more for their home than someone who does not stage.   Still, many sellers ask if it is worth the cost.  

In our West Savage marketplace, where an average of 2-3 homes sell each month out of an average inventory of 27 homes, it is no surprise that competition can be fierce.   And with that type of competition, price is always going to be a factor. 

Yet staging can play an important role in making your home stand out aginst the competition. When a buyer chooses a home, it is often times based on a feeling they get when they walk in the door.  The ability to create a warm and inviting feeling is critical.  And it need not cost a cent.

Despite the competitiveness of sellers, some of the things we see in homes (or on online marketing) never ceases to amaze me.   During showings, simple, yet little things, like a refrigerator full of magnets and memos, to blinds shut tight as a drum, can create a crampled, dark and cluttered feeling when buyers walk in the door.  

Serious showing "violations" like dirty underwear strewn on the bathroom floor and "kegger party" photographs plastered on the walls (yes, we have seen this numerous times in some of the seemingly nicest of homes) creates an all-out distraction for buyers.  Their eyes instantly gravitate away from the home and onto the "scenery".  

Bottom line:  When a home is on the market, it should look clean and uncluttered. 

My favorite DOs and DON'Ts:

DO clean clean clean clean clean. 

DO remove most, if not all, personal items. 

DO incorporate plants, fabrics, and colors into the home, and keep base colors neutral.

DO showcase rooms as their original intention.  

DO pay attention to the front walkway, front door, and even the garage door. 

DON'T use fake plants. 

DON'T hang pictures too high on the wall.  Eye level is best.

DON'T push furniture up against windows.    

DON'T keep blinds closed during showings.  Open them up and let the light in. 

DON'T forget to weed gardens and landscaping. 

Even if you are not moving, staging can help you enjoy your home!

Changes in Refi Program for FHA Loans

If you built or bought your home in the peak years of 2004-2007, financed your home with an FHA loan, and are now finding yourself in a difficult position, you may want to look into this option.    The Federal House Finance Agency (FHFA) recently announced a major expansion of the Home Affordable Refinance Program for Fannie Mae and Freddie Mac loans to help troubled borrowers.

The change will allow current borrowers with loan-to-value (LTV) ratios of more than 80 percent up to 125 percent (formerly 105 percent) to qualify if they meet other program requirements. This significantly expands eligibility for the program which allows borrowers to lock in today's lower rates or move into a fixed rate product. Higher fees will apply to loans with LTVs above 105 percent, but the program includes lower fees for borrowers who opt for a 20-year or 25-year term, to build equity faster and reduce interest payments over the life of the loan.

Borrowers can find out if they have a Fannie Mae or Freddie Mac loan by clicking on "loan look up", or can detemine eligibility for the program here.   More information and a refinancing example can be found here.  An eligibility

Just Listed!

Just Listed! 

This turnkey home features a newly finished lower level with stone surround gas fireplace, dual-zone heating and A/C, new Oak hardwood floors just installed in June 2009, new appliances installed in July 2009, a new roof and deck, and a new concrete driveway in 2009.   The home has been freshly painted on the interior.  Move right in!      

Just Sold by Chad & Sara

Just Sold!  This tunkey home was located for an outstate Minnesota buyer.  

205 Pine Street