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        <title>Metropolitan Detroit Real Estate Blog</title>
        <link>http://www.markzproperties.com/blog/</link>
        <description>Metro Detroit real estate blog with news, statistics, pricing comparables, mortgage rates, and market updates, brought to you by one of the top real estate agents in the entire country MARK Z. Real Estate Team selling over 250 homes a year.</description>
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            <guid>http://www.markzproperties.com/blog/first-time-home-buyer-tips-saving-money-with-a-home-inspection.html</guid>
            <link>http://www.markzproperties.com/blog/first-time-home-buyer-tips-saving-money-with-a-home-inspection.html</link>
            <author>info@soldbymarkz.com (MARK Z. Home Selling Team)</author>
            <title>First Time Home Buyer Tips – Saving Money with a Home Inspection</title>
            <description> <![CDATA[ 
Avoid the Money Pit while Buying Real Estate in Oakland, Wayne and Washtenaw County


Everyone has their dream home in mind.  It’s that perfect home design with all the right amenities that is nothing short of “utopia”.  It’s the perfect home.  When you actually see what looks like your dream home with an a price that cannot be beat then you’re sold in a heart-beat, ready to dump your life savings into it to finally settle down.


But rushing into buying your first home in Michigan can be a mistake, especially if you get blinded by your dreams and hopes of the perfect home.  The best way to avoid getting burned and losing money on a bad investment is to have an objective pair of eyes review the property lest your dream home transform into a real nightmare.


Recall the movie “The Money Pit” if you need a reminder.


The Importance of a Buyer’s Inspection when Buying Real Estate in Michigan


Even if you’re looking at homes for sale in Northville, Royal Oak, Birmingham or other affluent neighborhoods you still need to get the home inspected.  That inspection ensures that you’ve had a complete survey of the home from top to bottom to avoid surprises that cost homeowners tens of thousands of dollars each year.


When you buy a home for sale in metro-detroit, that home inspection provides you with real peace of mind and offer detailed information beyond what is offered up in the appraisal process.


According to HUD, home inspectors provide buyers with a completely unbiased evaluation of the physical condition of the home including the structure, construction, mechanical, plumbing and electrical systems.  Through this inspection they can let you know if items are sound or if you’ll need to replace/repair something ion the near future.


This important inspection also points out the remaining life on major systems and parts of the home’s structure.  When you consider the size of the investment you have on hand, you can see how important it is to be informed about the condition of the property in order to avoid unforeseen issues.  Your inspection is not about an appraisal or cosmetic issues, it’s about avoiding any and all potential structural and mechanical problems.


A 2011 poll from the American Society of Home Inspectors stated “Nearly three in four (72 percent) U.S. homeowners agree the home inspection they had when they purchased their current primary residence helped them avoid potential problems with their home.  Also, almost two in three (64 percent) noted, in the long run, they saved a lot of money as result of their home inspection.”


Keep in mind with inspections that real estate contracts for buying a home in Michigan have contingency clauses.  This often states that home inspections need to be done within a specific time frame.  If you miss the deadline, you’re out luck negotiating repairs as part of closing on the home.


Buying a Home in Metro Detroit – A Simple Inspection Checklist


Before you hire a professional home inspector when purchasing real estate in Northville, Royal Oak, Birmingham, Canton and other SE Michigan communities you should take the time to do your own inspection.  Here’s a simple checklist you can follow


-Examine the property on your own for obvious, visual cues that could point toward damage or potential disaster.  This includes drainage issues, water stains on the ceiling, water damage or stains along the bottom of the walls in the basement, leaking roof or roof damage, cracks in the foundation and moisture/mold around windows.




Check the age of the appliances in the home include the HVAC system and water heater.


Check the age of the electrical system and what kind of condition it’s in


Examine the water pressure throughout the home as well as the speed of drainage in every sink and tub


Review the disclosure of the seller to make sure it is complete and accurate




Once your initial inspection is complete and you decide to move forward, hire a professional inspector.  If you don’t hire an inspector while buying a home in Metro Detroit, you could be out of luck without a professional inspection if you ask for repairs.


 
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            <pubDate>Fri, 11 May 2012 14:54:29 -0400</pubDate>
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            <guid>http://www.markzproperties.com/blog/principal-residence-exemption-in-michigan-enhancement-legislation-signed-by-the-governor.html</guid>
            <link>http://www.markzproperties.com/blog/principal-residence-exemption-in-michigan-enhancement-legislation-signed-by-the-governor.html</link>
            <author>info@soldbymarkz.com (MARK Z. Home Selling Team)</author>
            <title>Principal Residence Exemption In Michigan Enhancement Legislation Signed by the Governor</title>
            <description> <![CDATA[ 
On May 1st 2012, Governor Snyder signed legislation providing homebuyers a fair process when it comes to their property taxes. 


 


Senate Bill 349, sponsored by Senator Dave Hildenbrand (R-Lowell) creates two Principal Residence Exemption (PRE) filing dates; one on June 1st, and the other on November 1st. Previously there was one date, May 1st of every year and if you bought a home that was non-homesteaded AFTER May 1st, then you were stuck paying the non-homestead rate until the following year. So now there are two times during the year in which you can file, June 1st and November 1st.


Additionally, this legislation allows bank-owned properties to retain their PRE so that buyers can qualify at the lower rate of taxation. This is particularly important since foreclosures have flooded the market in recent years.  


 


Download Department of Treasury’s Guidance on the PRE Enhancement 


 


Below are a few FAQ’s regarding the new law:


 


Does the legislation take effect this year?


 


Yes. The new law moves current May 1st PRE filing deadline to June 1st of this year. 


 


How does it work?


 


If a homebuyer purchases a Principal Residence and closes on or before June 1st, they can take advantage of a significant tax break by filing for a Principal Residence Exemption. 


 


When is the additional filing date?


 


November 1st. This allows for tax relief in those communities that still collect a portion, if not all of their non-homestead mills, on the December tax bill. 


 


 If my client buys after June 1st this year, what can they expect?


 


 If a homebuyer purchases a home after the June 1st filing deadline, and their local tax authority collects all non-homestead mills on the spring tax bill, their property taxes may not reflect the exemption until the next tax bill. If however that local tax authority collects a portion of the non-homestead mills on the winter tax billing cycle, the homebuyer can file for a PRE before the November 1st and exempt themselves from any non-homestead mills collected on the December bill.


 


What about the foreclosure provisions? 


 


 Banks have the option of maintaining the home’s Principal Residence status by filing a Conditional Rescission.  By maintaining this exemption status, it’s the expectation that borrowers will be able to qualify for financing on these foreclosed properties at the PRE rate and begin paying the lower rate of taxation as soon as they move into the home. To make up for the lost school revenue, banks will be assessed a newly defined tax that will keep the 18 mills (which they presently pay on any foreclosed property) when a property can no longer qualify as a principle residence. It is important for those REALTORS® working with bank clients to let lenders know about the change and communicate the benefit of filing a Conditional Rescission. 

 ]]> </description>
            <pubDate>Thu, 10 May 2012 12:11:21 -0400</pubDate>
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            <guid>http://www.markzproperties.com/blog/northville-real-estate-tips-for-buying-a-home-in-northville.html</guid>
            <link>http://www.markzproperties.com/blog/northville-real-estate-tips-for-buying-a-home-in-northville.html</link>
            <author>info@soldbymarkz.com (MARK Z. Home Selling Team)</author>
            <title>Northville Real Estate – Tips for Buying a Home in Northville</title>
            <description> <![CDATA[ 
Making Northville Your New Home


Of all the cities within Wayne County, Northville boasts the highest property values and has more luxury homes than any other community.  For those looking for their dream home, buying a home in Northville may be the ideal choice – especially if you’re looking for brick-paved streets and well-preserved Victorian era architecture.


There couldn’t be a better time to be in the market for Northville real estate considering the signs of increased sale activity along with interest rates hovering at historic lows.  That makes buying Northville real estate so much more affordable for the average family.


The real issue however is making a decision; Northville offers a wide range of choices in homes and lifestyles across varying price ranges.  Choices go between three and four bedrooms homes, older homers, new construction, ranch models, and two and three story real estate.  While some decisions may seem simple, you also have decide if you want a simple single family home you can care for on your own, or managed property with external maintenance and lawn services provided but with higher fees through a homeowners association.


Unless your family is working with an unrestricted budget for Northville real estate and you can afford anything you want, there are usually some trade-offs involved.  Typically, savvy first-time home buyers in Northville create a list of critical must-have items in a home with secondary items they’re willing to pass on.  This secondary list is where the trade-offs occur.


Key Items to Consider When Buying a Home in Northville


The Age of the Northville Real Estate – Due to city planning requirements as well as those established by developers, newer homes are likely to be on smaller lots with landscaping that is far less mature.  The upside is that this kind of Northville real estate will have more energy-efficient systems and a modern design.


The community itself is typically designed to be more open and offer additional amenities and protective covenants within a homeowners association.


Room for Elbows – Buying a home in Northville gives you the choice of living closer to the Victorian, old-world architecture of downtown Northville or living in the newer neighborhoods toward the outskirts of the community.  A lot more than a quarter acre in size is likely to be farther away from the community center.  The trade-off is the commute into the shopping district but you’ll have a little more room to breathe with larger property and more open space.


The View – Unfortunately with Northville real estate you’re living in the deep country side and it’s certainly not the west coast where you can catch a great view of the mountains and foot hills.  Northville is fairly well developed, so the best views after buying a home in Northville are going to center on the abundance of trees and the other masterfully-crafted modern homes in many of the newer subdivisions.  If you need a more open view there are numerous other communities throughout Wayne County offering more “openness”.


Northville Real Estate Options – As discussed, there are some great options for buying a home in Northville if you have an open mind.  The community has a wide variety of styles and architecture throughout including older farmhouses, newly built condominiums, traditional ranch developments and more. 


Real estate in Northville is “newer”, with more than 80% built after 1970, and more than half of those built since 1980.  Don’t let the new developments fool you, there are plenty of older homes to choose from and Northville celebrates its diverse heritage with the annual Victorian Festival.


The Basement – Lastly, a big factor for many families is the basement.  They’re common in many areas with newer development in Michigan and offer a lot of opportunity for families.  While you may love a home, you may not like the lack of space upstairs.  An unfinished or partially finished basement offers opportunity for growth and personalization later on, including additional living space.


Other things to consider are natural lighting, the layout of living space, storage, kitchen space and design, and even the number of bathrooms.  Remember that when you’re buying a home in Northville, you don’t have to live there for the rest of your life.  Your first home could be the stepping stone you enjoy for the next 10-15 years before moving on to something that is a better fit for your family.
 ]]> </description>
            <pubDate>Fri, 04 May 2012 12:10:53 -0400</pubDate>
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            <guid>http://www.markzproperties.com/blog/how-to-win-a-bidding-war-in-metro-detroit.html</guid>
            <link>http://www.markzproperties.com/blog/how-to-win-a-bidding-war-in-metro-detroit.html</link>
            <author>info@soldbymarkz.com (MARK Z. Home Selling Team)</author>
            <title>How To Win A Bidding War In Metro Detroit</title>
            <description> <![CDATA[ 
What is a real estate bidding war, and why is it back in Metro Detroit?


It is a supply and demand issue. When there’s not enough supply for the demand, prices get pushed up. The way that this happens is often through bidding wars. If you are just starting to get out and look for homes, you probably are not aware of what has been happening lately. If you have been out looking and maybe even put in an offer or two you have already realized it's not as easy as just finding the perfect home. You have to WIN the perfect home.


When a lot of home buyers want the same property and write purchase offers for it, we have multiple offers. In some markets, multiple offers come in at or under list price (I have seen this in cooler markets). But when the realty market is an overheated sellers market, inventory is too low for the demand, prices rise with those multiple bids. Then you have bidding wars.


This can happen intentionally, as when home sellers knowingly under price the property to attract multiple buyers, or it can happen unintentionally, when the owner and agent priced the home in line with the comps and the market, but there’s an unexpected avalanche of interest. (The latter just happened to me when I priced a listing to be exactly in line with the market, but got 13 offers and a lot of overbidding.) Either way, the result is similar. Buyers up their price and sweeten their terms to win the deal.


Here’s what I have seen buyers do to win a competitive bid situation:




Come in over list price


usually the inspection period is very short, to assure the seller it’s a “done deal”


if owner occupied, often there’s a free rent back to the seller of a month or two


some buyers may offer to pay costs that customarily are paid by the seller, such as an owner’s policy of title insurance, the escrow fee, transfer taxes, and in some cases, even the commission


most of the time, “CASH IS KING”, and the all cash offers will win the deal (or large down payments) – very hard for 20% down or less to compete against cash offers because they usually include an appraisal contingency (with prices escalating, many homes won’t appraise)


many times we will see offers with no contingencies for inspections, loan, and appraisal – non-contingent offers can be dangerous, most of all if there are no presale disclosures or inspections


In todays world where many homes are having appraisal issues because prices are going up faster than appraisals can keep up with, waiving your appraisal contingency or willing to pay $________ over the appraised value is one of the strongest things you can put in an offer


In my opinion the strongest thing you can say or at least side by side with waiving your appraisal contingency is waiving your mortgage contingency


most offers will come with proof of funds


offers will have all the disclosures already signed too


some will include a letter from the Realtor, the buyer or both – buyers may also include a photo, sometimes sellers will choose an offer based on emotions or they will say "these buyers just feel right for my home"




But let’s focus on the bidding part in particular for a moment. How is all of this a bidding war? Is it just that offers come in over the asking price? Yes, but sometimes even more is going on too. Let’s look at that now.


Sometimes an offer is submitted when it appears that there are only 2 or 3 others, but within a day there are 10 offers. That is a very different landscape! The buyer who submitted the offer earlier may submit a new offer, without even knowing what the prices are – often it’s just a new page 1 of the contract since that’s where the pricing information is.


As more offers pour in, the listing agent may tell the buyers’ agents what the status is. More buyers may “improve” their offer, essentially bidding up the price before there’s ever a presentation to the seller or a counter offer to be seen (or hoped for). The bidding can be self-inflicted, in other words.


Once the seller sees the offers, there may be a counter offer to one or more of the bids – though perhaps not. Sometimes the listing agent may call for "Highest and Best" with a deadline. Buyers should NOT count on the opportunity of getting a counter offer or Highest and Best deadline (a mistake I see all of the time). The old saying that “you only get one chance to make a first impression” counts here. Some sellers will simply pick the best offer and be done. Seeing a stack of contracts and all the ancillary documents can be overwhelming and exhausting for sellers – so many do not want to deal with countering a lot of them.


During the counter offer period, if it happens, some buyers may accept the seller’s price and terms. But some buyers will go a step further and up their offer and terms further – either in a new counter or yet again with a new page 1 of the contract. Here you really see “bidding wars” in action!


My buyer specialists are experts in bidding wars, because of how many offers we write. If you need any help feel free to shoot me an email markz@soldbymarkz.com and I'll be glad to help or just comment below with any questions you may have.
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            <pubDate>Sat, 28 Apr 2012 08:07:47 -0400</pubDate>
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            <guid>http://www.markzproperties.com/blog/how-long-should-short-sales-take-fhfa-making-changes-to-speed-up-short-sales.html</guid>
            <link>http://www.markzproperties.com/blog/how-long-should-short-sales-take-fhfa-making-changes-to-speed-up-short-sales.html</link>
            <author>info@soldbymarkz.com (MARK Z. Home Selling Team)</author>
            <title>How Long Should Short Sales Take - FHFA Making Changes to Speed up Short Sales</title>
            <description> <![CDATA[ 
New Measures by the Federal Housing Finance Agency could help boost short sales in Oakland County, Wayne County and throughout Michigan.


If you've been leaning toward purchasing one of the many homes for sale in Northville or surrounding cities then you may have considered the short sale - where the lender agrees to sell a house for less than the current owner owes.


While a short sale is potentially a great way to buy homes for sale in Novi, Northville, Canton, and even Ann Arbor, the stigma behind short sales is that there is a long (read: looooooooooooooong) wait to get through the red tape. 


Many buyers are intimidated by the process.


Thankfully, that long wait is set to get shorter in the near future.


The Federal Housing Finance Agency, the regulator for Fannie Mae and Freddie Mac, is setting up new rules for short sales in which lenders are required to respond to requests for a short sale within 30 days.


In addition to this requirement for a response, buyers in the short sale process must be notified within 60 days at the latest of the lenders' decision.  During this period, if the delay in a response to the buyer takes more than 30 days, the lender must provide weekly updates to the home buyer.


Boosting Sales In Southeast Michigan


The entire purpose of this new act is to increase the sales and encourage buyers to hold their interest in short sale properties.  Right now, many buyers are anxious to get into a new home, and they are discouraged by the lengthy wait of short sales.  The current bureaucracy leaves interested buyers hanging on a decision that just seems like it will never come.


For example, a survey from the California Association of Realtors found that 67% of respondents were unsatisfied with the current approval process of short sales.  It's not uncommon to see as many as 4 out of 10 short sales fail due to unresponsive lenders.


“FHFA and the enterprises are committed to enhancing the short sales and deeds-in-lieu process as additional tools to prevent foreclosure, keep homes occupied and help maintain stable communities,” said FHFA Acting Director Edward J. DeMarco in a release. “These timeline and borrower communication announcements set minimum standards and provide clear expectations regarding these important foreclosure alternatives.”


Buying a Home in Wayne County - Changes Coming for Short Sales


Even before these new rules were announced as in the works, positive change was coming for the real estate market across the nation.  According to recent reports from RealtyTrac, short sales are up 33% in January of 2012 with encouraging numbers continuing through the first quarter of the year.

According to Ira Rheingold of the National Association of Consumer Advocates, "More short sales is mostly a good thing.  The only concern is that homeowners may have to short sell after being denied loan modifications that would have enable them to stay in homes." ]]> </description>
            <pubDate>Fri, 20 Apr 2012 16:00:51 -0400</pubDate>
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            <guid>http://www.markzproperties.com/blog/understanding-the-process-of-buying-bank-owned-properties.html</guid>
            <link>http://www.markzproperties.com/blog/understanding-the-process-of-buying-bank-owned-properties.html</link>
            <author>ltd@denhalaw.com (Lance T. Denha, Esq.)</author>
            <title>Understanding The Process of Buying Bank Owned Properties</title>
            <description> <![CDATA[ 
In today’s residential real estate market, there is a lot of interest in buying bank owned properties. Some of the information you may read about is convoluted and confusing. Therefore, let this article serve as a breakdown of how purchasing bank owned property typically works.


An REO (Real Estate Owned) is a property that goes back to the mortgage company after an unsuccessful foreclosure auction. These properties are now owned by the bank because the properties failed to result in a bid. In fact, most foreclosure auctions do not even result in bids. When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees which accrued during the foreclosure process.


Foreclosure sales begin with a minimum bid that includes the loan balance, any accrued interest, plus attorney’s fees and any costs associated with the foreclosure process. In fact before you can even bid at a foreclosure auction, you have to have the money readily available for the full amount of your bid. In the event you’re the successful bidder, you receive the property in “as is” condition, subject to the redemption rights a previous owner has available to them to come up with the money during the redemption period, if applicable. “As is” condition means the buyer takes the property and his/her own risk so there is a possibility this risk may involve someone currently residing on the property or liens being attached and are associated with the property.


A REO, by contrast, is a much “cleaner” and attractive transaction. Because the property didn’t result in a sale at the foreclosure auction, the bank now owns it and cares for it. It is now known as an REO property. As an REO, the bank will remove any tax liens, evict occupants if needed and generally prepare for the issuance of a title insurance policy to the buyer at closing. As an aside, REO’s may be exempt from normal disclosure requirements.


Once the property reverts, the bank now owns the property and the mortgage loan no longer exists. The bank will handle the eviction, if necessary, and may do some repairs. They will negotiate with the IRS for removal of tax liens and pay off any homeowner’s association dues. As a purchaser of an REO property, the buyer will receive a title insurance policy and the opportunity to investigate the property.


Despite the clean title that one gets with an REO, be warned that buying one may not yield a great bargain. One should be extremely cautious and diligent about purchasing a REO if your intent is to make money off of it. In the REO arena, banks are aggressively marketing the property to get them off the books but are also attempting to maximize the sales price. As such, don’t be surprised at a counter-offer from the Bank. Banks have entire REO departments that manage this process.


Before making your offer, you’ll want to contact your agent and find out as much as you can about the condition of the property and their process for receiving offers. Most banks will not provide financing on their REOs, so if it has extensive damage you might have to pay cash. This is especially true if the property has extensive damage and you are purchasing it “as is.” Remember that REO’s sell at pretty close to full market value and are not the deals presented as advertised online or through the televisions. However, diligence could result in a great deal!
 ]]> </description>
            <pubDate>Wed, 01 Feb 2012 10:55:38 -0500</pubDate>
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            <guid>http://www.markzproperties.com/blog/market-update-in-metro-detroit.html</guid>
            <link>http://www.markzproperties.com/blog/market-update-in-metro-detroit.html</link>
            <author>info@soldbymarkz.com (MARK Z. Home Selling Team)</author>
            <title>Has The Real Estate Market Shifted? Sellers Market?</title>
            <description> <![CDATA[ 
Has the pendulum shifted? Have we seen the worst of the real estate market here in Metro Detroit?


#marketupdatejan17#


Supply is down 20% and buyer demand is up 6%


The real estate market is changing right before our eyes. In the last year inventory or the amount of homes for sale each month has decreased by more than 20%. This in part due to the fact that there are a lot less bank foreclosures on the market. Lenders are much more open to short sales which avoids a foreclosure.


Of the 5,139 sales last month (the fact that there were 5,139 sales last month is remarkable in itself), 757 or 14.7% were short sales. Had the lender not been open to a short sale a lot of those homes would have eventually foreclosed. In general we know demand is up because last month there were 5.8% more sales compared to the same period in 2010. So while demand is up and supply is down 20%, we are experiencing a shift in the market. It is starting to favor sellers.


Great time to pick up some investment properties


Another amazing statistic is that 46% of the transactions that closed last month were CASH sales. This means the buyer didn't get a loan and came to the closing table with CASH. I would assume a good portion of these sales were investor purchases. From a cash flow perspective, it really is a great time to pick up some investment properties and rent them out. You could let a property management company like JMZ Management, handle the entire process from leasing the home out to managing the tenant and complete process after the fact. I personally have bought two or three properties every year the past few years.


23% of the homes listed for sale are short sales


Keep in mind currently of the 25,989 homes currently listed for sale, 16% of the homes are bank foreclosues and 23% are short sales.


Multiple offers are the norm now


I currently have 7 buyer specialists on the team who only work with homebuyers and they tell me almost every offer they write is in a multiple offer situation and more times than not they are writing over asking price and still losing the bidding war. It's very competitive right now as a buyer and a great time to be a seller. The market has shifted in a positive direction and interest rates are still at record lows hanging out around 4%.
 ]]> </description>
            <pubDate>Wed, 18 Jan 2012 03:12:23 -0500</pubDate>
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            <guid>http://www.markzproperties.com/blog/obamas-new-plan-unveiled-for-struggling-homeowners.html</guid>
            <link>http://www.markzproperties.com/blog/obamas-new-plan-unveiled-for-struggling-homeowners.html</link>
            <author>ltd@denhalaw.com (Lance T. Denha, Esq.)</author>
            <title>Obama's New Plan Unveiled For Struggling Homeowners</title>
            <description> <![CDATA[ 
On October 24, 2011, the Obama administration rolled out a revamped program to help homeowners stave off foreclosures. This plan is for current borrowers who want to get a lower monthly payment through a lower mortgage rate. Proponents of the program say it would help boost the economy by relieving financial stress on homeowners and reducing their mortgage so that they would have more expendable money.


The new initiative, which involves removing barriers to homeowners qualifying for the Home Affordable Refinance Program (HARP), is the latest in a series of steps by the President to defend his mortgage relief efforts and promote his jobs and economic policies.


At its core, the latest initiative would allow homeowners to refinance regardless of how far their home has fallen in value. It scraps the current ceiling of 125% of a loan's current value. The Federal Housing Finance Agency (FHFA) also is extending the expiration date for HARP by 18 months, to December 31, 2013 for loans originally sold to Fannie Mae and Freddie Mac.


The plan would also eliminate certain risk-based fees for borrowers who refinance into shorter-term mortgages and would lower fees for other borrowers, which have been a significant deterrent for many homeowners.


HARP went into effect in the Spring of 2009, with the expectation of helping 4 million to 5 million troubled homeowners refinance their mortgages. HARP refinancing will still only be available to people who are current on their mortgage payments and who have had no more than one late payment in the last year. This plan allows homeowners to refinance their mortgages at lower rates. Borrowers can bypass the usual requirement of having at least 20% equity in their home. But few people have signed up. Many underwater borrowers — those who owe more than their homes are worth — couldn't qualify under the program. Roughly 22.5% of U.S. homeowners, about 11 million, are underwater, according to CoreLogic, a real estate data firm. As of August 31, fewer than 900,000 homeowners — and just 72,000 underwater homeowners — have refinanced through the administration's program.


Homeowners' eligibility under this program is not predicated upon the decline in home value. It should also be noted that some fees for closing, such as title insurance and loan processing will be eliminated making refinancing less expensive than normal. Banks are not required to purchase the mortgages from Fannie Mae or Freddie Mac, as they typically are required to do with risky type loans. This will allow many lenders to refinance, however a bank is not obligated to refinance even if a homeowner meets all of the requirements.


The Mortgage Bankers Association welcomed the Administration's changes to HARP but warned homeowners that the changes won't be implemented overnight. It could take several weeks for lenders to receive specific guidance and operational details to put the changes into practice.


However the question is, how many people will this new plan help? And will it be enough to jumpstart the still struggling housing market? This remains to be seen.
 ]]> </description>
            <pubDate>Tue, 01 Nov 2011 12:26:16 -0400</pubDate>
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            <guid>http://www.markzproperties.com/blog/wall-street-journal-announces-top-real-estate-teams.html</guid>
            <link>http://www.markzproperties.com/blog/wall-street-journal-announces-top-real-estate-teams.html</link>
            <author>info@soldbymarkz.com (MARK Z. Home Selling Team)</author>
            <title>Wall Street Journal Announces Top Real Estate Teams</title>
            <description> <![CDATA[ 
The MARK Z. Home Selling Team finished number 81 in the country out of 2 Million plus Realtors on the "Top 250 Teams by Transaction Sides List" for 2011. The Wall Street Journal and Real Trends Inc. anncounced the top 1,000 real estate agents and teams for 2011 in the United States. Teams and Agents were ranked based on the total number of closed transactions in 2010. I wanted to congratulate my team on a very successful year in a very challenging real estate market. 


We are starting to see the market turn for the positive. Although we are seeing home prices increase in certain communities, we are still having appraisal issues on many houses. Foreclosure inventory is very scarse and when one does pop up on the scene more times than not, it is a multiple offer situation with offers usually over asking price. It's a great time to put your home for sale because there isn't a lot of inventory on the market and therefore you are not competing against all the foreclosures you once had to for the past 3 years.
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            <pubDate>Fri, 23 Sep 2011 10:20:28 -0400</pubDate>
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            <guid>http://www.markzproperties.com/blog/to-lease-own-or-lease-to-own-your-home.html</guid>
            <link>http://www.markzproperties.com/blog/to-lease-own-or-lease-to-own-your-home.html</link>
            <author>ltd@denhalaw.com (Lance T. Denha, Esq.)</author>
            <title>To Lease, Own, Or Lease-To-Own Your Home</title>
            <description> <![CDATA[ 
To Lease, Own, Or Lease-To-Own Your Home


At some time in your life, you may have rented a home or an apartment, so you may have undoubtedly encountered a lease agreement. If you’ve ever bought or sold a house, you’re familiar with a purchase offer. The lease-to-own agreement is a hybrid of the two – a lease agreement combined with a purchase offer. Whether renting is better than buying depends on many factors, particularly how fast prices and rents rise and how long one intends to stay in the home.


A lease-to-own house purchase (also “rent-to-own purchase” or “lease purchase”) is a lease combined with an option to purchase the property within a specified period, usually 3 years or less, at an agreed-upon price. The borrower pays an option fee, which is credited towards the purchase price. The borrower pays rent, and an additional rent premium that is also credited to the purchase price. If the purchase option is not exercised, the buyer loses both the option fee and the rent premium.


The sale price of the house and the rent are typically market based, however it is always subject to negotiation just as is typical in a straight purchase or rental transaction. Historical data shows that buyers are typically less knowledgeable of the market than are sellers which place the buyers at a disadvantage. Therefore it is always beneficial to have all parties, especially buyers, remain diligent throughout the process by seeking out independent, professional advice. Additionally, in these type of transactions, Buyers prefer lengthier option periods as they provide more time to build equity and repair credit whereas Sellers generally prefer a shorter option period so they can realize a more immediate return.


The option fee and rent premium are viewed differently by buyers and sellers. To the buyer, the option fee and rent premium are part of the equity in the house they will soon own. Fully anticipating that they will exercise the option, the only cost is the interest they would otherwise have earned. To sellers, however, these payments are the best guarantee that their houses will sell; if they don’t sell, the payments are retained as income.


Another possible alternative to a lease/purchase deal for consumers with poor credit and/or no cash is a sub-prime loan. Sub-prime loans continue to be available at reasonable prices from community groups or state and local finance agencies. Borrowers have to search out these sources, but if they can qualify for a loan from one of these sources, it is probably a better route than a lease/purchase.


The lease/purchase offers home ownership opportunities to consumers who can’t qualify for a loan from any source, but who are prepared to bet on themselves. The aim and goal for these borrowers is that before the option period expires, they will qualify for the mortgage they need to exercise the purchase option. During the option period, they have the opportunity to rebuild their credit and accumulate equity while living in the house.


It should be noted that consumers who need to rebuild their credit rating during the option period should understand that paying their rent on time will not accomplish this goal. Rent payment information is not used in compiling credit scores. Therefore, lease/purchase buyers who need a higher credit score must focus on their timely payments toward credit cards and other loans.


Leasing to own has advantages and disadvantages for both parties. The benefit to sellers may arise in circumstances where they currently have two homes and by utilizing the lease-to-own method, the seller will no longer have the obligation to come out of pocket for two mortgages during the lease term. As for buyers who can’t yet afford a house, the lease-to-own arrangement may be the best alternative in an effort to ultimately obtain title and a homestead in the fastest possible fashion.


As with any kind of financial contract involving residential real estate, both buyer and seller should be actively seeking competent professional advice from a team of professionals which may include an attorney, title agents (to ensure clean title), as well as real estate brokers, in order to find the best home suitable from a geographical and economical standpoint.
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            <pubDate>Wed, 31 Aug 2011 12:52:15 -0400</pubDate>
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