2009 Home Forecast, Prices to go Down, Short Sale?

Another article out talking about the outlook for homes, and how they could go down another 15-20%.  If that were the case more sellers would have to look at the short sale Minnesota home selling option.  The article can be found on money.com today and it’s located here:  http://money.cnn.com/2008/11/04/pf/forecast_home3.moneymag/index.htm?postversion=2008110605

Some highlights of the article are as follows:

Although still relatively low, many interest rates have gone up. An example 6.2 to 6.7%.    18.6 million vacant homes, that’s the most since the C.B. started recording the data.   2.8% of mortgage loans 3 months behind on payments, up from 1.4% last year at this time.  If the recession continues, foreclosures will stay high and rise for a long time coming.  It talks about seeing home prices down 20% since July of 2006, but of course that’s different with each state.  Nouriel Roubini things that we could see another 20% decline in house prices next year, that would be lot in my opinion, but “Patrick Newport of economic forecasting firm Global Insight projects a 15% drop.”

There are some other tips on this article about keeping your house in excellent shape due to the competition, if you are able to hold on until 2010 or later, you should, for some people that’s a long time, for others it’s not.   For buyers the article recommends that you wait a little while for one sitting around then pay below market value or submit an offer for below market value.  They talk about improving your credit score, and how much a higher credit score can help save you on a mortgage. The credit score mentioned 780-820 credit score to get the deal done.

If you owe too much, behind on payments, lost a job and soon will be behind on payments, can’t afford the current ARM adjustment, or the one about to happen, if you are probably going to lose your home, or simply can’t afford it, we need to have your bank take less than what’s owed to them, and we can help you with a bank short sale here in Minnesota, we have negotiators, please check out the following Minnesota short sale homes article

Record Price Drops leads to Minnesota Short Sales

Have you read today’s money article: http://money.cnn.com/2008/10/28/real_estate/August_Case_Shiller/index.htm?postversion=2008102816  about the record home price drops.  It’s amazing how fast home prices have fallen across the united states and how some think they will continue to fall.

Some highlights from the article:

“17.7% over the past 12 months, and experts expect the declines to continue.”

“Home prices fell in August for the 25th consecutive month”

The commentators are saying it was a speculative bubble and their is far too much inventory.  One million + too much inventory.

“The hardest hit of all 20 cities on a year-over-year basis was Phoenix, where prices plummeted 30.7% during the past 12 months. Las Vegas prices plunged 30.6% and Miami sank 28.1%.”

Difficulty in obtaining credit is one of the main reasons and causes.

Peter Schiff says “”They’ll surrender all the gains they made in the past 10 years,” he said, “and be even lower than they were 10 years ago.”

Schiff explains that everyone spend too much for the past 10 years, and now it’s correcting itself.

If you think you owe too much or need to sell your house check out minnesota short sale homes

We can help negotiate with your bank and get paid by your bank if you owe too much on your house before the sheriff sale or in the redemption period. We can help you deal with the negotiating, and or the deficiency part of the transaction.

Have you seen this latest article on the market bottoming later on  It goes on to say how long real estate will continue to go down and by how much.  It could take a long while for it to crawl back. Interest rates on the rise the past week.  New construction starts slumped.  The market will have to over correct to get rid of the inventory.   If you think you may owe too much on your house and you want to possibly sell your house for less than what’s owing, than a short sale is the answer. We have 3rd party negotiators to negotiate with your bank to help get your house listed and hopefully eventually sold for less to a new buyer.   Our Minnesota Short Sale Home article talks in depth about how short sales work, the process, and answers a lot of the most common questions.   Obviously the negotiator is going to do their best to try to negotiate away the deficiency.  Also in other cases after the sherif sale during the redemption period , typically 6 months in most cases the negotiator will try to get the short sale done if that particular lender does short sales after the sheriff sale.  We would like you to contact us right from the moment you are about to be behind on a payment, well before the initial notice of mortgage foreclosure or if you are listed in the finance and commerce or local legal newspaper.  We can get started on the process right away.    You can speak to our 3rd party negotiators on their best ideas to get a release of deficiency on a short sale.  We have short sale agents here in minnesota to assist you for your area. They are up to date on the latest minnesota foreclosure laws.   These are short sale specialist, they have practiced on hundreds of transactions over the years in Minnesota.  These negotiators contact the lenders loss mitigation department and that’s where the file is worked on almost daily.  Remember a seller has certain redemption rights in minnesota where they can rent, sell etc the property.  In the redemption period though as the seller you will have to pay off the loan in full to keep the house.  What I mean by this, is after the sheriff sale it’s too late to then try to reinstate the loan.  You may want to talk to an attorney about your mortgage foreclosure rights in the state of Minnesota.  Our negotitators deal with foreclosure sales and rules every day of the week.  Please contact me by email ron@minnesotainvestors.com so we can talk to you about your short sale situation.

Minnesota Short Sale Home

Minnesota Short Sale Homes

Have you seen this article on other markets?East Bay  They are predicting it could be 2014 before this market even recovers. The question is will it be that long with other states also?  If we feel Minnesota’s market may not recover for 3-4 more years at least and you can’t afford the payments or you simply are falling behind in payments and can’t catch up.  Let me ask you this, do you want to sell the house?  Could you sell the house?  It’s a fact that many people right now are over leveraged on their current mortgages and simply don’t have enough money to bring to the closing, and or to pay holding costs, repairs, or an agent to just get out of the house. They have to pay to get out of the house.  There is a solution.  It’s referred to as a short sale.  A short sale can be a better solution in many ways then completely losing the house.  There are new fannie mae guidelines that state this.  I have shown these guidelines on other short sale posts.  With the financial economy problems right now, it’s just making the housing market move like a snail.  Some people are able to weather through it, some are not.  Also as more houses go back to the bank more houses will sell very cheaply as foreclosure, forces the comps to lower prices in all types of neighborhoods, leaving it even harder to sell.  With a short sale, the bank will pay our 3rd party negotiators to help out, put the paperwork together and negotiate.

Learn about Minnesota Short Sale Homes to see if it makes sense for you. This article is very long and descriptive and tells you if it’s right for you.  You can view the full article on www.MinnesotaInvestors.com

Minnesota Short Sale Homes 1 in 6 Underwater now

It’s time to learn what a short sale is at this article: Minnesota Short Sale Homes
Have you read the latest article on MSNBC?     http://www.msnbc.msn.com/id/27089919
1 in 6 now owe more on their mortgage then their property is worth.

This article is from Oct. 8th , 2008:

The idea of this is that it makes people feel less rich, the total opposite of the last 5-7 years and makes people want to shop less, eat out less, etc.  As you probably know that most people can’t refinance the house because they get behind in payments or they simply don’t have the value or equity needed to refinance the property. Many choose to let the house go back to the bank.  This will lower the price of comps in that neighborhood.  For those who bought a home in the past 5 years, it’s estimated 29% of all homeowners are underwater on their homes. Meaning they owe more than the house is worth.  The article reads as Minneapolis being back to 2004 price levels. I personally have seen many houses even from 2001-2002 selling for the same or less money.

The article goes on to read that “9.16 percent were a month or more overdue or were in foreclosure in the second quarter” , That’s a lot!

So the estimate is that 12 million homes are underwater right now.

Many people even think they have $5000 in equity still need to pay an agent commission when listing the house, holding costs, and other closing expenses. If you are behind on payments, about to be behind on payments, or clearly owe too much on your home, I have associates who can negotiate with your lenders and get paid by the lenders. They take care of the work. You hand in some initial paperwork and they do most of the rest just listing the house, taking in PA’s submitting to banks, etc.  Selling your home on a short sale is far better than giving it back to the bank.  If you can afford the payments and aren’t behind much you could rent it out for awhile, but if you are under water by a lot, you may not want to wait 5-10 years for the price to catch up, that is if you can’t afford the payments or your ARM is about to adjust.  Health bills, layoff at work, loss of employment, death, divorce, these all cause foreclosures, it’s a part of life that many go through. You don’t have to be a foreclosure expert, we have those who are.

Minnesota Short Sale Homes