Lehigh Valley Real Estate Blog, Home Buying & Selling Information

Are Foreclosures a Good Deal?

A common question being asked by buyers these days is the availability of foreclosure homes in the Lehigh Valley. In the past, foreclosures could be a good deal but are they now?

During the past few years, mortgage restrictions were relaxed and the "subprime" loan became very popular. In addition, 80/20 loans as well as interest-only mortgages and ARMs became the loans of choice.

What this boils down to is that the banks/mortgage companies have more invested in the house. There is no equity and the fees and penalties have been piling up. How much will they be willing to reduce the price to sell the home? Good question!

Also, the homeowner has not been able to pay the mortgage so there is a possibility that the house is in need of repairs that could not be afforded plus there is also a possibility that an irate homeowner destroyed the house before being forced out.

As a result, how much of a deal are you going to get on the foreclosure home? Could there be a great deal out there? I think so but I don't believe they are as prevelant as the media leads you to think.

FHA Loan - Lehigh Valley 1st Time Home Buyer

During the past few years in the Lehigh Valley, the 80/20 mortgage was common. The home buyer would obtain two mortgages, the primary mortage for 80% of the purchase price and a second mortgage for 20% of the purchase price. Typically, the 20% mortgage had a much higher interest rate.

During this period, the fast moving real estate market allowed home sellers to reject offers with FHA financing.

An FHA loan benefits the home buyer with a better interest rate and a mortgage for 97% of the purchase price. The problem, from a home seller point of view, is that the FHA loan requires a separate inspection for safety related issues. All problems found during the FHA inspection MUST be corrected before settlement.

Last year, the FHA relaxed some of the home inspection guidelines. As a result, the loan program has become popular for home buyers with a limited amount of cash. Past guidelines required the home seller to make all FHA required repairs. Now, it is a negotiating factor.

Lehigh Valley Real Estate Market Update!

What's going on with the Lehigh Valley real estate market? A lot of people think the prices are dropping. I haven't really seen that although I have seen builders offering larger incentives and some sellers taking deals they would have totally rejected a year ago. A lot of sellers, seeing the boom of the past few years, are still attempting to price their houses higher than the market will bear. As a result, some home sellers have gotten desperate and are more willing to negotiate.

This is not true in every case. A few weeks ago, I worked with a buyer that ended up in a multiple bid situation for a house listed at $370,000 that was on the market 5 days (they got the house). What's going on in the market is a little unpredictable since it has swung to a buyers market. (if the average number of days to sell a house exceeds 6 months it is a buyers market). Even so, a house in really good "showing" condition and priced correctly does not stay on the market as long and limits the buyers negotiating power.

Commercial Building for Lease in Palmer Township

484 S. NULTON AVE., EASTON, PA 18045

Located in Palmer Township, this 2800-4000 sf, free standing building has been recently upgraded. Possible uses are doctor’s office, day care center, spa/fitness centre, restaurant or can be easily converted to office space. Bring in your ideas! Minutes from Rt 78/33/22.

Call 610-252-9106 or 610-349-3242 for more information!

Festivals in Lehigh Valley - Mayfair

In Lehigh Valley, May signifies the start of many festivals over the next few months.

The Mayfair - Festival of the Arts will take place from May 24th to May 28th.

At the end of June/early July you can go to the Kutztown Fair or go to the Shakespeare Festival.

In early August, you can spend 11 days at the Bethlehem Musikfest.

Then, at the end of August you have the Allentown Fair.

During the weekends, in between these main events, you can spend time at water parks in the Poconos, or visiting the many parks in PA.