Many people are hearing the word “short sale” and sometimes it can be confusing as to what that word really means.   I thought I would share with you my perspective as Certified Distressed Property Expert here in the Greater Raleigh, North Carolina area.

If you, or anyone you know, has any further questions or if you would like a private, confidential analysis of your current real estate situation, please call me at (919) 235.0007.  I am here to help you.

Linda

Just before Thanksgiving I met with 11 of the Top Real Estate Agents in the greater Raleigh area. We are all members of the Triangle Area Luxury Home Marketing Group. This group represents several real estate offices throughout the Wake County area. We meet once a month to tour each others homes for sale that are priced $750,000 and up. I have been a member of the group since it began in Raleigh back in 2004 and we always share what we are seeing in the market place.  

What is Happening With Luxury Homes Here in Raleigh?

This past meeting I asked everyone what percent they believe real estate values have fallen in the Raleigh, Cary, Apex and Triangle area. We all agreed prices have dropped 15% to 20% in the upper end and at least 10% drop in other price ranges. This is so much better than other areas of our country but, still very painful to folks who need to sell now. 28% of American home owners are under water and that number is expected to be in the 45% by the end of 2010.

If you know of anyone who needs to sell and finds themselves in this negative situation have them call me or visit my web site to learn about some of the solutions available. Several years ago we all believed Raleigh homeowners would be mostly bullet proof when it came to declining real estate values.   Now we know different. Ouch it really hurts!

Over the last several months many people have asked me if home sales have been picking up for the Raleigh real estate market.   While we have seen an increase in appointments scheduled to view our current inventory of  Triangle area homes for sale, we have not seen them turn into equal sales.  Home sales around the Raleigh region are still very sluggish and the luxury market  has been hit the hardest. 

The Biggest Real Estate Problem We Have in the Raleigh Region

is that we are not seeing many move up buyers. This is causing many sellers to compete for a sold sign and has driven home prices down. The listing inventory of homes for sale is still high and many sellers have reduced their home prices several times and still are not sold. The average home list price to sales price is  96% if sold in the first 30 days and 89% if price reductions occur. With declining home values, low interest rates and tax credits you would think real estate here in the Greater Raleigh area would be booming but, it isn’t. Everyone is busy showing a lot of houses but, the truth is Triangle real estate home sales are still lower in 2009 than they were in 2008.  

Let’s Look At Some Contributing Housing Market Factors

1.  First Time Home Buyer and Tax Credit   Read the rest of this entry

As many of you know I help people in the Raleigh, Cary, Wake Forest, Apex, Holly Springs area all of the time who are behind in the mortgage, facing foreclosure and need help.   Many times when I meet with people they tell me of scam companies and representatives who have contacted them saying they can help them, but instead charge upfront fees, etc and become a nightmare to deal with.

This week I came across a video by the Federal Trade Commission that gives helpful advice about what you need to do if you see you are starting to fall behind in your mortgage payments.   It also tells what you need to look for if you are approached by people who may in turn be scammers.    If you are anyone you know of need help, please help them get the real facts about what options homeowners have.   Visit www.hopenow.com, www.raleighrealestateforeclosures.com or call 1-866-995-4673.

You are not alone and we are all here to help.

Linda

What were the general principles we all learned in long term investing? Buy low, sell high, diversify, have an emergency savings and remember the long in long-term investing.  An artificial bubble was created by removing all barriers to owning a Raleigh home. If you were breathing you could get a Raleigh home mortgage and interest rates were historically low.  The buy button was pushed and the rush to riches through real estate investing came to an end because bubbles eventually burst. The bubble was never meant to be permanent but, now that it has burst many people are afraid to invest in a Raleigh home purchase. The Raleigh real estate bursting bubble has left you with one of the best Raleigh home buyer markets in all of history.

The ups and downs of Raleigh Real Estate Investing

Every investment has ups and downs but, over time owning a Raleigh home is a safe and prudent place to invest your money. Where else can you get a tax deduction, a place of YOUR OWN to express your pride of Raleigh home ownership and earn these kind of percentages on your investment?

National Home Appreciation Data

1970 – 1979 = 142% appreciation

1980 – 1989 = 52% appreciation

1990 – 1999 = 45% appreciation

2000 – 2008 = 42% appreciation

Data taken from RISMedia March 2009

Check out my daily best buy list at lindacraft.com

To learn about $8,000 tax credit click here.

Have a great day-

Linda

Raeigh home owners facing foreclosure or short sale go through a tremendous amount of stress in the process of losing their home. Prior to December 2007, if a homeowner lost his home due to a bank forclosure or short sale, and the bank forgave any difference between the price it was sold for and what was owed, the Raleigh home seller would owe additional income tax on the portion that was forgiven. Yes, it is hard to believe that a Raleigh homeowner in distress could be taxed but, it’s true.

Let’s say the Raleigh homeowner owed $350,000 on the mortgage, but the foreclosure sale only brought in $300,000. The bank agreed to forgive the shortfall of $50,000 in the sale. The Raleigh homeowner would have been liable for the income tax on the $50,000 forgiven debt.

Now, because of the unbearable stress in the housing industry and economy, Raleigh real estate has a window of opportunity to sell distressed homes without being taxed. In December 2007, Congress stepped into provide temporary relief in the form of forgiving this debt from 2007- 2012.  After that, the old rule applies again.

To be eligible for this Raleigh home tax relief, the mortgage must be for your principal residence. It does not apply to vacation, investment or other properties and no more than $2 million of forgiven debt can be excluded from taxable income.

If you are struggling making your Raleigh home payment consult a qualified accountant or REALTOR before considering foreclosure or short sale. Although the Mortgage Forgiveness Debt Relief Act will help many Raleigh homeowners there are situations where tax relief will not be granted. For example;  equity lines used for Raleigh home purchase or improvements fall under this act. Equity lines used for vacation can still be taxed.

If you know of anyone falling behind in their mortgage payments as a Certified Distressed Property Expert (CDPE), I can help.   Please call me at (919) 235-0007. 

Have a great day-

Linda

Good news for all of us who live and love Raleigh, NC. Forbes.com ranked Raleigh #1 March 25th, 2009, as the best place for business and careers. Durham ranked #3.

With wonderful publicity such as this, PLUS  UNC and Carolina Hurricanes both in the play offs for championships the Raleigh real estate market is getting a nice media boost.

As predicted the Raleigh real estate market is bouncing back faster than other areas around the country. Sales in all price ranges have increased. I have had multiple offers on several properties and other Raleigh REALTORS have reported this as well.

Many people are still waiting and trying to time the Raleigh Real Estate bottom. In the lower price points $300,000 and below, those that are waiting have missed it.

Inflation will drive up interest rates so if owning a piece of Raleigh real estate is in your future I would take action now. Rates are low today and Raleigh home prices are stabilizing and on the rise in some areas.

Please don’t be one of the people who look back 2 years from now with regret that you didn’t buy a Raleigh home or investment property when you had this incredible opportunity. It is really a great time to buy.

If you or any of your friends, families or co-workers have have questions about the the current Raleigh homes market, I am available by email or at (919) 235.0007.

Have a great day-

Linda

It Takes Four Things For Every Homeowner to Sell a Raleigh Home:

1.   A Compelling Price

2.   Condition

3.   Access

4.   A good marketing agent

Many sellers today feel very beat up and out of control in this challenging and competitive Raleigh real estate market. Many Raleigh home sellers get mad at their real estate agents when their homes do not sell but, the truth is the REALTOR has very little control. As a seller you decide the list price, how easy or difficult you’re going to ake it for us to show; you decide whether or not you are going to put it in good showing condition; you decide whether or not you’re going to be cooperative on financing options and closing cost. Your REALTOR does not decide any of that and neither does the buyer. You’re in 100% control. Additionally, your REALTOR can’t make the buyer pay what you might want, any more than your REALTOR can make you take what they buyer offers. You’re in control- you have the final say over the sale of the house. Your REALTOR’S  job is to advise you, give you the truth about current market conditions, market your home aggressively to generate leads and follow up on every lead to create opportunities for an offer.

If you have any questions or would like to discuss strategies in this current real estate market, please give me a call at 919.235.0007 or send me an email.

Linda

Unemployment, divorce, job transfer, death, financial crisis is finding many Raleigh homeowner’s struggling to make their mortgage payments. Mortgage payments are due by the first day of each calendar month. They are late on the 15^th day of the month. After 15 days a late payment reminder letter arrives, after 30 days it is mortgage default and the ugly phone calls begin from the collection department. The stress of not knowing how to make ends meet and combined with the threatening calls received daily leaves many owners of Raleigh homes wanting to lock the door, cancel their phone and run away to what they hope will be a quick fix; bankruptcy or foreclosure.

Everyday I talk to people who are in despair. The best answer is to sell their home, pay off the debt, and move to a smaller more affordable home. However, many Raleigh homes have not appreciated enough to satisfy the cost of selling and the mortgages owed. If you find yourself in this situation a short sale is your best solution. Mortgage lenders do not want to own real estate. They are eager to work with you on a short sale. So eager that I have many lenders calling me directly to tell me my seller has missed payments and they are willing to do a short sale. They request from me that I get the home owner to submit a pre-foreclosure short sale package. Why, because they do not want to foreclose and own real estate. They want to help find a win win solution.

For most home owners it very confusing and hard to believe that their mortgage company wants to help them when they are receiving threatening phone calls from the collection department. Those phone calls feel like they are only out for blood. And, in some ways they are, at least that one department. Every mortgage company has different departments with their own agenda. The Origination Department makes loans. They are the friendly sales force for the mortgage company who want to give you money. They are paid when you borrow. The collection department has only one job and that is to collect. Some would say; “collect by harassment.” When the Collection Department pressures you into paying they receive a bonus.  Loss Mitigation or Home Retention is another department at your mortgage company. They want to work with you to stop a foreclosure and encourage short sales and other solutions to avoid foreclosure. To learn more about the solutions to stop foreclosure visit LindaCraft.com

5 Things You Need to Know to Save Your Credit

and Avoid Foreclosure:

1. When you call your mortgage company, make sure you get to the right department.
2. There are thousands of short sale request daily so it takes a lot of time to get through. Be patient.
3. The work load in Loss Mitigation is causing employee turn over to be very high. If you do not get the answer you want when you call in the first time, call back and talk to someone else. The employee turn over in the pre-foreclosure departments is so high that you may get a new employee that doesn’t know what they are doing. If you get someone new you may be told things that will make you want to run away again. You can always ask to speak to a Supervisor’s.
4. Whatever you do, don’t let your Raleigh home go into foreclosure. There are other solutions. Foreclosure equals 10 years of horrible credit and every foreclosure reduces surrounding home values approximately 9%.
5. A bankruptcy may seem like a quick fix to stop the harassing phone calls but, in the end you will have a bankruptcy and a home foreclosure on your credit report. Do a short sale first and a bankruptcy afterwards only if you still need to.

If you have any questions I can be reached at (919) 235-0007.

Linda

Interest rates are below 5%, there is a surplus of housing which gives buyers unbelivable choices, sellers are motivated to sell and are pricing realistically and are still negotiating even lower than list price…Sounds like a fabulous buyers market to me and buyers should buy. Right? But, here it is January 2009 and buyers who really want to get a great house at an affordable price could do so right now and they are parralized by fear and waiting. Waiting for what?

When you ask them why they are waiting, they will say because they don’t want to pay too much. As a Raleigh residential real estate broker for 24 years it amazes me that in a sellers market where there are very few homes to chose from and buyers frequently settle for less, while paying top dollar because many buyers are in bidding wars and pay above asking price to get a home—buyers buy. They buy fast when prices are high and wait when prices are low? Fear causes them to pay too much in a sellers market and is now causing them to miss out on a great buy in a buyers market. Why do buyers buy in a sellers market when the prices are the highest and they will not buy in a buyers market when the prices have dropped and interest rates too. Anyone have any thoughts on this?