Thank you for the replies. It is good to get other opinions. I appreciate all of the responses. There is no substitute for due diligence in what ever market you are shopping in. Each market is different.
In a nutshell a short sale is when a seller gets their lender(s) to accept less than what is owed on the mortgage(s) as payment in full. This is normally done instead of a foreclosure. Usually the home owner has to have a legitimate hardship such as loss of income or re-location to be considered for a short sale. When an offer for the home is accepted by the seller it must then be approved by the lender or lenders who hold the mortgage(s).
I agree that rushing into a home purchase is an extremely bad idea. Home prices in the Michigan market are about as low as they can get right now. I don't see the expiration of the home buyer's credit affecting that much. Also, while the Feds probably won't raise interest rates in the near future they have already announced that they will no longer be buying mortgage backed securities at the end of March. According to the lenders I work with that act alone will most likely bring rates at least back to where they were last Summer. In our area the current rate on a 30 year FHA loan is 5.25%. Last Summer that rate was 6.75%.
There are always good reasons to buy a home. I believe there are four good ones as to why right now is the best time. #1 Home prices are low but starting to rise. I believe that trend will continue as more lenders are leaning toward short sales than foreclosure. There will be good deals, but not some of the prices we have seen with foreclosed homes. #2 Interest rates have been kept artificially low by the Feds securities buying program. That ends March 31 and rates are expected to rise substantially then. #3 HUD is changing rules for FHA loans in the first part of April and later in the Spring. Seller contributions will be limited to 3% of the purchase price. Currently that's 6%. Also the up front cost of mortgage insurance that every FHA loan must have is being raised from the current 1.75% of the loan to 2.25% of the loan which will raise a monthly payment. #4 The home buyer's tax credit will expire April 31. This is no longer limited to first time home buyers. If you have lived in your home for 5 of the past 8 years you could qualify for up to a $6500 tax credit if you decide to buy another home. If you have not owned a home for three years you could qualify for up to an $8000 tax credit. These are credits not deductions. That means if you do not owe as much tax as your credit is worth Uncle Sam will send you a check for the difference. If you are thinking about buying a home do it! Sitting the fence now could cost a bundle. Anybody else have thoughts on the matter?
I am a Realtor and I just earned my CDPE designation. (Ceritfied Distressed Property Expert) I am wondering how many people know about or have heard of what a "short sale" really is. I am looking for answers from other Realtors, home buyers and home sellers. I simply want to know what people think.
I am the listing agent for a home that has been placed on foreclosure.com. It was not put there by me. How can I edit the listing for Zillow? Foreclosure.com doesn't give a lot of info.
Things are a little slower than they have been but business still isn't bad. I just closed on a place yesterday and I am in West Michigan. Michigan has been in a nearly single state recession for about six years now and people still seem to want to buy. A lot of people that could not afford to own a home before can afford a home at todays prices and are taking advantage of the market.