Lehigh Valley Real Estate Blog, Home Buying & Selling Information

Buying a Lehigh Valley Foreclosure Home vs a Short Sale Home

  
In general, buying a Lehigh Valley Foreclosure Home is a much cleaner/faster process than a Short Sale.

You make an offer on a foreclosure and the bank accepts it, counters it, or rejects it. Once the offer is accepted, you are fully under contract to purchase your Lehigh Valley Home and if the inspections and mortgage go well you eventually move-in.

The time from the bank accepting the offer to closing on the home is typically around 1.5 months (at least in PA). Foreclososure properties usually include an addendum from the mortgage provider stating that they accept your offer and here are THEIR terms (being sold as-is, must close within 30 days...etc) 

From when you submit the offer until you hear whether or not the bank accepts it may take 1 day, a few days, or a few weeks. Each lender is different but most reply in an acceptable time. The listing agent should have some idea on a reply time. 

With a Foreclosure Property, the bank already owns the house. They don't want to own real estate and usually want to unload it (although that doesn't mean they will accept an unrealistic price). The bank typically gets a BPO (broker price opinion) or appraisal to determine the approximate worth of the property.

With a Lehigh Valley Short Sale the home owner still owns the home. They may or may not be paying the mortgage. The mortgage companies will look at each situation differently to determine whether or not there is a hardship that justifies the "Short Sale". The bank is being "Shorted" the money they are owed. They want to know Why?

Typical reasons for a Short Sale:

• Job Loss
• Divorce or Break-up of owners
• Medical Emergency

When a Lehigh Valley Home Buyer wishes to make an offer on a Short Sale, the offer is presented to the seller of the home. Since the home seller will not be making any money on the purchase, they are likely to accept an offer that may not get accepted by the bank. On the other hand, the closer the offer is to what they owe on the house the better likely hood for a successful sale. 

Once the home seller accepts the offer, it goes over to the bank to get approved. The process of the bank reviewing and either accepting, countering, or rejecting the offer is the painful part. It may take months of waiting without any indication that the bank has even looked at the offer. The term no news today is very common. In the meantime, the listing agent may continue to market the property to accept a better offer or a backup offer.

So, a home buyer may wait months without hearing a word about their offer. This is very discouraging to many home buyers. This year I worked with 4 home buyers on short sales that never closed. In each situation, the bank was given 4-6 months to give a reply on their offer. Each of the buyers moved on to another house (2 went on to purchase foreclosures) after giving the bank ample time to reply to their offer.

The term Short Sale is deceiving because it may take months to get an approval from the bank that the offer has been accepted. 

Regardless of a Foreclosure or a Short Sale Property, a Lehigh Valley Home Buyer may end up with a really good deal pursuing one of these properties. Unfortunately, there is no set roadmap since each situation is unique.

With a Foreclosure, there is no longer any involvement with the original home owners so a VERY time consuming step in the process has been removed. With a Short Sale, the home owner is motivated to sell the home before it goes into foreclosure so the home may be in better condition.  

Each property needs to be looked at with these thoughts in mind.

Get a Mortgage Before Searching for Lehigh Valley Real Estate

 
Finding a mortgage before looking for Lehigh Valley Real Estate is a smart idea

The first step in purchasing real estate should be getting a mortgage.  Getting a mortgage, or rather getting approved for a mortgage, lets a buyer know what he can expect to afford when looking at property.  It is important for a potential Lehigh Valley Home Buyer to know how to secure a mortgage.

There are any places to look for a mortgage these days.  There are banks, mortgage brokers, finance companies, credit unions and private lenders.  Often experienced Realtors have mortgage brokers or banks that they work with often and using a lender that has a good reputation is often a safe bet.

When looking for a mortgage have a good idea how much you can afford to pay each month.  Look into the past, present and future to determine this.  It is of the utmost importance not to bite off more than you can chew when it comes to your finances and the affordability of a home that you might buy.

When applying for a Lehigh Valley Loan a person must provide documentation of income, expenses, and assets.  Have your financial statements and tax returns ready and the process will be much easier.

Having a mortgage ready to go before finding a Lehigh Valley Property will make the entire process smoother.  Financing is harder to get these days and being prepared is a wise step in the home buying process.

For more information on mortgages click here.

Waiting For The Lehigh Valley Real Estate Bottom

Waiting for the bottom in real estate is similar to grabbing a yo-yo at the bottom, you are usually a little early or a little late

There are many people out there waiting for the bottom to hit in many facets of the economy, including real estate.  Perhaps there will be a big announcement one morning across newspaper headlines and across the internet “THE BOTTOM IS HERE: NOW IS THE EXACT MOMENT TO BUY A LEHIGH VALLEY HOME”.  Of course by the time the announcement comes the bottom will have hit and the exact time to buy real estate will have come and gone.

A great analogy to the bottom of the real estate market is a yo-yo.  Take a yo-yo in your hand and use it.  Can a person grab the yo-yo at the exact moment it hits bottom every time?  Chances are a person will grab it just before it hits bottom or just after, rarely at the exact bottom.   Real estate is the same game, if it is indeed a game.  If people knew, absolutely knew, the exact time to buy stocks, real estate, or any other investment then no one would ever have a financial worry.

For people who believe in investing in Lehigh Valley Real Estate now is a great time to buy.  Interest rates won’t be low forever, real estate has either already hit the bottom, is about to, or is already on its way up, we’ll know for certain sometime in the future.  If you want to buy at the bottom, buy now or wait until it’s too late, when you can look back and say, “If only I had bought then.”

Examine the Closets in Your Lehigh Valley Home

An organized closet can make the difference when trying to sell your Lehigh Valley Home

When considering selling Lehigh Valley Real Estate the question surfaces, what can I do to improve my home and make it more appealing to a prospective buyer?  Looking at your closets might be the answer.  Closets may be the small improvement your home needs when getting ready to sell.

Newer homes tend to have bigger closets and they aren’t just dark spaces with doors any more.  Today’s closets, thanks to companies like California Closets and other offshoots, are filled with light and organized spaces like drawers, shelves, shoe racks and hanging bars that hang at different heights to accommodate different articles of clothing.  Some closets come across as small rooms.  Regardless of whether you have a new home or an older home, if your closets aren’t organized they can be.

Closets can be do-it-yourself projects or created by a contractor or a closet company.  Remodeling closets can be an inexpensive re-model that can add value to the sale of your home without breaking the bank.

Selling a Lehigh Valley Home? The First Impression Might Be the Lawn.

A beautiful lawn can make the difference in your Lehigh Valley Home's Curb Appeal

When it comes to selling a home the first impression counts.  In a competitive seller’s market, where inventory is up and pricing is competitive, first impressions can mean everything.  The exterior of a home is what catches the buyer’s eye first and before the he even reaches the home it might just stop on the grass.  If you want to draw a buyer in take a good look at your lawn.

Keeping a lawn green and perfect can be difficult in certain situations.  Climate and animals are two culprits that add to the difficulty of lawn maintenance but both issues can be faced.

Dry, arid climates make irrigation necessary.  If you are trying to conserve water and don’t mind a dry, brown looking lawn that is one thing,  if you are trying to sell your property you will need to step up the irrigation.

Dogs, whether they belong to you or a neighbor, are another culprit for lawn damage.  The ammonia in a dog’s urine tends to burn grass.  If dealt with immediately by saturating the urine spots with water, the ammonia is diluted and less likely to cause the spots.  For spots that already exist there are a variety of products available to revive the grass and make it green.  There are also grasses that are heartier and more resistant to burning from the ammonia in the urine.

Short of rolling out beautiful, fresh sod, there are more economical alternatives to greening up your lawn and making a great first impression on potential Lehigh Valley Home Buyers.

Click here for an article about the importance of green lawns from Realty Times.

Government Pressure Expected to Help Reduce Foreclosures

The government is putting pressure to decrease foreclosures. The Lehigh Valley doesn't have as many foreclosures as other parts of the country but this may be good news to some home owners.

With unemployment figures on the rise, the number of foreclosures is expected to keep rising over the coming months and the federal government is trying to do something about it.  President Obama created legislation in February that was expected to help those facing foreclosure, yet the programs set in place are reported to have been enforced sluggishly by many of the lending institutions.  The pressure is starting this week.

The Federal Government is saying “Help these people out!” to the 71 financing companies that are participating in the program.  Teams of three people are being sent  to monitor the eight largest companies, and these teams will be requested to submit reports twice a day on their progress.

Another part of the problem has been incomplete paperwork on behalf of the borrowers.  Those that qualify for assistance need to complete their paperwork to move forward on getting assistance.  Under the mortgage assistance plan borrowers who qualify can get 2% rates for up to five years, quite a healthy boost for homeowners facing foreclosure.  Borrowers will be  communicated with to help them complete their part.

For more information on the government’s plan to enforce help for those facing foreclosure, click here.

Do You Want to Sell Your Lehigh Valley House? Take Action!

If you want to Sell Your Lehigh Valley Home, pay attention to the details

In today’s competitive real estate market it is important to pay attention to the details if you want to sell your home.  If you want to sell your property, consider choosing a Realtor who is experienced and knowledgeable about your area, what is selling and what people are paying.  A Custom Market Analysis (CMA) is essential for establishing fair market value for your home.  The right real estate agent will price your home appropriately and competitively.

If you choose to go it alone remember a few things: the current Lehigh Valley Real Estate Market, pricing your home accordingly, the condition of your home, and the volume of buyers looking at real estate in your area.  If you want your home to sell within a reasonable time frame, price it right.  If you need to be on the higher end of the price spectrum your home needs to be in exceptional condition.

Remember, it is a competitive real estate market out there.  If you want your Lehigh Valley Home to sell quickly  it must not only be priced correctly but be in better shape than other houses in the same price range.

Visit www.LehighValleyHomeSeller.com for more information.