Strategic Default-a Viable Strategy if Upside Down?

With the Colorado Springs Real Estate Market being down from 2006, does it make sense to simply walk away? Lets take a closer look.

Certainly the vast majority of homeowners who foreclose have no other option. Economic conditions have left them a choice: Either buy groceries and keep the heat on or, pay the mortgage. A simple choice.

On the other hand there is a growing trend of "Strategic Defaults": Where a homeowner simply walks away bacause the debt on the home is greater than the value. Recent studies show that approximately 1 out of 4 foreclosures fit in this category.

While some may advocate this strategy, there are pitfalls: Credit rating will be impacted and the ability to buy again may not become a reality for as long as 7 years or more.The possibility of the bank filing a judgement, especially in those cases where the owner's income is good, is possible. You leave yourself at the mercy of the rental market. Risk of rising rents is a real possibility due to increasing demand because of tougher loan qualification guidelines, more former homeowners needing housing and the possibility of increasing interest rates.

Although real estate prices have dropped substantially, historically speaking, they have always come back. There is no reason to believe that they won't again. A "Strategic Default" may be viewed as the same as selling at the bottom of the stock market.

Other options to a "Strategic Default" may be: Simply staying and riding it out, renting it or a loan modification. Certainly, when looking back, there will be sense of gratification in knowing you survived the tough times and made good on your mortgage commitment.

Opinion by William Szilagyi WilliamsHomeSellers LLC www.ZColorado.com www.WilliamsHomeSellers.com 719-646-2634

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Colorado Springs Real Estate Market Statistics for 4/29/2010

Most areas reflect that the Colorado Springs Real Estate market is moving in a positive direction. Click Here to view this week's numbers.

Also, to get weekly updates sent directly to your e-mail, sign up at www.ZColorado.com

William Szilagyi Williams HomeSellers LLC www.ZColorado.com www.WilliamsHomeSellers.com 719-646-2634

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EXPANDED! Help for Military who PCS and can't afford to sell their house

Great news for Colorado Springs area Soldiers who need to sell their home because they are PCS-ing! Now certain Military homeowners can get assistance in selling their home from the EXPANDED DOD Housing Assistance Program (HAP) if permanently PCS-ing out of the area and can't affort to sell. CLICK HERE to see the brochure that gives an overview of the expanded program.

Questions: Contact William Szilagyi Williams HomeSellers, LLC 719-646-2634 www.ZColorado.com www.WilliamsHomeSellers.com

 

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As Expected.....!

Ok so I called it, offers are way up on Colorado Springs Real Estate as the deadline for the Housing Tax Credit approaches. Furthermore, it seems that the offers are a bit lower in an attempt to get sellers to "Bite" on a lower offer because this is the last week for the tax credit.

In my opinion this is a good strategy. Many sellers have hung their hat on the tax credit in hopes the demand will increase the chances their home will sell for money. With the deadline approaching, some sellers may in-fact take a lower offer in an "Last gasp" attempt to sell befoore the tax credit expires.

With 3 days left my recommendation...make an offer to get the negotiation process rolling. Have a few houses in mind and move quickly through the process and move on to the next one if it doesn't work out. There is still time to get the right deal and also benefit fron the additional incentive.

Courtesy of William Szilagyi Williams HomeSellers LLC www.WilliamsHomeSellers.com www.ZColorado.com 719-646-2634 colorado springs home values,colorado springs homes for sale,colorado springs housing,colorado springs real estate,colorado springs realtor,colorado springs realty,foreclosed homes colorado springs,foreclosure colorado springs,fort carson housing,fort carson real estate,home values colorado springs,homes colorado springs,homes for sale colorado springs,housing colorado springs,mls colorado springs,mls listing colorado springs,mls listing colorado springs,property colorado springs,realtor colorado springs,realty colorado springs

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Higher Interest Rates a Certainty?

Mortgage rated ARE expected to increase from the long-time historic lows. We have all been a little spoiled by these rates as they have become the "Norm". I laugh when I say this, I swore I wouldn't but, "Back when I was a kid" in the 80's and even early 90's an 8% rate was a teriffic rate!

Fast forward to today with some rates were seen in the 4% range and low 5%'s were common, the "sticker shock" will be tremendous.

Even more crucial to the Colorado Springs real estate market is the effect we will see from the predicted increase: Lower affordability index and reduced real estate prices.

As rates move upward, prices will go down. Real estate, being supply and demand driven, will experience less buyers which will qualify for a certain price range of a home. As a general rule, for every 1% increase in rates, there is a 10% decrease in affordability. Resulting impact will be seen as less buyers causing prices to slip and those in the market to buy being able to afford less!

William Szilagyi WilliamsHomeSellers LLC 719-646-2634 colorado springs home values,colorado springs homes for sale,colorado springs housing,colorado springs real estate,colorado springs realtor,colorado springs realty,foreclosed homes colorado springs,foreclosure colorado springs,fort carson housing,fort carson real estate,home values colorado springs,homes colorado springs,homes for sale colorado springs,housing colorado springs,mls colorado springs,mls listing colorado springs,mls listing colorado springs,property colorado springs,realtor colorado springs,realty colorado springs

 

 

 

 

 

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www.ZColorado.com: Colorado Springs Real Estate Resource: Home Search, Market Statistics and Breaking News

Visit www.ZColorado.com for complete Colorado Springs Real Estate information, Search Homes, Get e-mail notifications of the best new listings, Free, On-line market evaluations, Market Stats and much more!

Courtesy of William Szilagyi WilliamsHomeSellers LLC 719-646-2634 colorado springs home values,colorado springs homes for sale,colorado springs housing,colorado springs real estate,colorado springs realtor,colorado springs realty,foreclosed homes colorado springs,foreclosure colorado springs,fort carson housing,fort carson real estate,home values colorado springs,homes colorado springs,homes for sale colorado springs,housing colorado springs,mls colorado springs,mls listing colorado springs,mls listing colorado springs,property colorado springs,realtor colorado springs,realty colorado springs

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Last Week of Tax Credit May Provide Deep Deals!

We all know but thought I'd mention it anyway...Consider that  a lot of sellers are counting on the tax credit to help them get a buyer. My opinion is that some of them will get desperate in the next week or so because they don't know what's next if they don't get a buyer. Forecast...deeper deals will be available in this last week before Tax Credit Deadline!

William Szilagyi WilliamsHomeSellers LLC www.ZColorado.com 719-646-2634 colorado springs home values,colorado springs homes for sale,colorado springs housing,colorado springs real estate,colorado springs realtor,colorado springs realty,foreclosed homes colorado springs,foreclosure colorado springs,fort carson housing,fort carson real estate,home values colorado springs,homes colorado springs,homes for sale colorado springs,housing colorado springs,mls colorado springs,mls listing colorado springs,mls listing colorado springs,property colorado springs,realtor colorado springs,realty colorado springs

 

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Top 10 Home Buying Blunders

According to Real Estate.com, the Top 10 Home Buying Mistakes are:

1.  Doing it alone. Buying a house is a complex transaction. Even if you don’t use an agent, you’ll need a complete, dependable team: lender, lawyer, inspector, insurer, as well as referrals and advice from friends and family. Enlist the help of these individuals early in the buying process.

 

2.  Buying at first sight. You may be in love with the place, but does it fit your family’s needs and budget? Make a list of your needs and wants and make sure the house fits your requirements. Check out the neighborhood and the community before you buy by visiting at different times of the day and week to learn about noise and traffic patterns. Even if you don’t have kids, check out the local schools to make sure your resale value will be good.

 

3.  Not getting pre-qualified and pre-approved. Being pre-qualified gives you a general idea of how much you can afford to borrow. Being pre-approved means a lender has verified your information and credit rating and agreed to provide you with a specific amount of money. You are in a better position to go house hunting knowing exactly how much you can afford and that you have financing.

 

4.  Overbuying. You may qualify to borrow more, but can you afford to? Analyze your monthly costs: debt, food, transportation, entertainment, and savings. As a general rule, your total monthly debts, including your mortgage, should not exceed 36 percent of your income before taxes. Be sure to budget enough to cover closing costs (often two to five percent of the home’s purchase price), plus moving, redecorating and maintenance. Allow for increases in ongoing expenses such as utilities and taxes.

 

5.  Misplacing your trust. No matter how much you like the agent, sellers, inspector, or the guy down the block who vouches for them, remember this is a business transaction. Your decision is binding. Do your own research and know your support team’s roles and responsibilities.

 

6.  Relying on oral agreements. Get it right and get it in writing. Written agreements almost always trump oral ones when it comes to contracts. If the offer says the lawnmower is negotiable, but the agent says it’s included, get it in writing.

 

7.  Skipping the fine print. You need to understand what you’re signing before you pick up a pen. Ask for documents in advance, make time to read them and ask questions. Get copies of your mortgage papers a few days ahead of closing.

 

8.  Forgetting or betting on resale. Avoid buying a home that costs 50 percent more than neighboring homes and think before buying the most expensive home on the block. Your neighbors’ lower home values will weaken yours. Remember, markets change. If you buy intending to flip your investment and the market falls and you have to sell, your selling price may not be enough to even cover your mortgage.

 

9.  Making an unconditional offer. Protect yourself with at least two of these contingencies in your offer:

• Mortgage financing -- You’re pre-approved, but is the house? Before a bank will lend you money, it will want a formal appraisal of the property to confirm that there is sufficient equity in it to warrant the loan. If the house appraises lower than the sales price, the loan may be declined.
• Inspection -- never buy an existing or new home without a thorough home inspection. Walk through the home with the inspector to learn more about the house and any concerns he or she may have.
• Insurance -- confirm you can get adequate coverage. In some areas, it’s difficult to get hazard insurance.

 

10.  Having buyer’s remorse. No place is perfect. There will always be surprises. Don’t let a few initial blips spoil the whole ride. And don’t miss a great house waiting for the perfect one!

 

William Szilagyi Williams HomeSellers LLC www.ZColorado.com 719-646-2634 colorado springs home values,colorado springs homes for sale,colorado springs housing,colorado springs real estate,colorado springs realtor,colorado springs realty,foreclosed homes colorado springs,foreclosure colorado springs,fort carson housing,fort carson real estate,home values colorado springs,homes colorado springs,homes for sale colorado springs,housing colorado springs,mls colorado springs,mls listing colorado springs,mls listing colorado springs,property colorado springs,realtor colorado springs,realty colorado springs

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Colorado Springs Real Estate Market Statistics for 4/19/2010

It is rare to have economic data that is positive on all fronts.  When comparing the first quarter of 2009 to the first quarter of 2010 we find increases in the number of sales average sales price, and median sales price.  Number of residential sales increased 19%.  Average price increased 2.6%.  Median sales price increased 2.8%.   We find decreases in the number of foreclosures and months of inventory.  The number of homes going into foreclosure decreased 6%.  Months of inventory decreased 20%.

Click here to see the most recent statistics for your area

WIlliam Szilagyi Williams HomeSellers LLC www.ZColorado.com 719-646-2634 colorado springs home values,colorado springs homes for sale,colorado springs housing,colorado springs real estate,colorado springs realtor,colorado springs realty,foreclosed homes colorado springs,foreclosure colorado springs,fort carson housing,fort carson real estate,home values colorado springs,homes colorado springs,homes for sale colorado springs,housing colorado springs,mls colorado springs,mls listing colorado springs,mls listing colorado springs,property colorado springs,realtor colorado springs,realty colorado springs

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An EPA license needed to sell your house?

Thinking about selling your house "In the future"? Take a look at HR 2454 (Cap and Trade bill)! Nevermind the political implications, should this bill pass, the practical ramifications will be staggering!

Contained in the bill are provisions which will REQUIRE certain energy and water efficiency standards to be met before you can sell your home.

In effect, this bill prevents you from selling your home without the permission of an EPA administrator. To get this permission, you will have to have the energy efficiency of your home measured. Then you could be required to make modifications under the retrofit provisions and comply with new energy and water efficiency requirements. Then you get a "Label" posted on your home and if you don't get a high enough rating, you can't sell.

Here are resources to check for yourself.

http://www.nachi.org/forum/f14/cap-and-trade-license-required-your-home-44750/

http://www.govtrack.us/congress/bill.xpd?bill=h111-2454

Consumer Informtion provided by William Szilagyi Williams HomeSellers LLC www.ZColorado.com 719-646-2634 colorado springs home values,colorado springs homes for sale,colorado springs housing,colorado springs real estate,colorado springs realtor,colorado springs realty,foreclosed homes colorado springs,foreclosure colorado springs,fort carson housing,fort carson real estate,home values colorado springs,homes colorado springs,homes for sale colorado springs,housing colorado springs,mls colorado springs,mls listing colorado springs,mls listing colorado springs,property colorado springs,realtor colorado springs,realty colorado springs

 

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Search Colorado Springs Real Estate For Sale

Click here to search all Colorado Springs Real Estate for sale. Free list w/pics of ALL listings including Bank Owned Properties,Fixer Uppers, Luxury and more! Create property organizers and get priority access to the best new listings. Email notifications too!

William Szilagyi WilliamsHomeSellers LLC. www.ZColorado.com 719-646-2634 colorado springs home values,colorado springs homes for sale,colorado springs housing,colorado springs real estate,colorado springs realtor,colorado springs realty,foreclosed homes colorado springs,foreclosure colorado springs,fort carson housing,fort carson real estate,home values colorado springs,homes colorado springs,homes for sale colorado springs,housing colorado springs,mls colorado springs,mls listing colorado springs,mls listing colorado springs,property colorado springs,realtor colorado springs,realty colorado springs

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Colorado Springs Real Estate Market Statistics for 4/12/2010

Click Here to view this week's market statistics for the Colorado Springs Real Estate Market

William Szilagyi Williams HomeSellers LLC www.ZColorado.com 719-646-2634 colorado springs home values,colorado springs homes for sale,colorado springs housing,colorado springs real estate,colorado springs realtor,colorado springs realty,foreclosed homes colorado springs,foreclosure colorado springs,fort carson housing,fort carson real estate,home values colorado springs,homes colorado springs,homes for sale colorado springs,housing colorado springs,mls colorado springs,mls listing colorado springs,mls listing colorado springs,property colorado springs,realtor colorado springs,realty colorado springs

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Rising Interest Rates' Impact on Real Estate

Predictions of rising Mortgage Interest rates may impact the Colorado Springs Real Estate market.

Industry experts are forecasting rates to increase to 6% or higher by years' end. Each increase of 1 percentage point in rates adds as much as 15 percent to the total cost of a home. Example: A $200,000 mortgage at 5.5% is $1135 and at 6.5% is $1264 P+I, a difference of $129 and an 11% increase in payments

It is unlikely that Mortgage rates will go down because of the massive sell off in bonds, the ceasing of the government's $1.25 trillion mortgage debt buy-out and the massive national debt accumulating to record levels.

We are starting to see the effects of rising rates here in Colorado Springs. In the last week or so rates have risen considerably moving upward from around 5% to 5.3%. A considerable increase over a short time horizon.

Interest rates are a big risk to the Colorado Springs Real Estate Market. For potential Home Buyers and Home Sellers, "Holding off" may end up costing thousands of extra dollars each years and, in many cases make a new purchase unaffordable.

Today's rates are historically low. Increased rates will put pressure on the entire economy. Six months from now less buyers may be able to qualify.

Opinion by William Szilagyi Williams HomeSellers LLC www.ZColorado.com 719-646-2634 colorado springs home values,colorado springs homes for sale,colorado springs housing,colorado springs real estate,colorado springs realtor,colorado springs realty,foreclosed homes colorado springs,foreclosure colorado springs,fort carson housing,fort carson real estate,home values colorado springs,homes colorado springs,homes for sale colorado springs,housing colorado springs,mls colorado springs,mls listing colorado springs,mls listing colorado springs,property colorado springs,realtor colorado springs,realty colorado springs       

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Search Colorado Springs Real Estate For Sale

Click here to search all Colorado Springs Real Estate for sale. Bank Owned Homes, Fixer Uppers and many more! Create property organizers and have new listings emailed to you immediately!

William Szilagyi WIlliams HomeSellers LLC www.ZColorado.com 719-646-2634 colorado springs home values,colorado springs homes for sale,colorado springs housing,colorado springs real estate,colorado springs realtor,colorado springs realty,foreclosed homes colorado springs,foreclosure colorado springs,fort carson housing,fort carson real estate,home values colorado springs,homes colorado springs,homes for sale colorado springs,housing colorado springs,mls colorado springs,mls listing colorado springs,mls listing colorado springs,property colorado springs,realtor colorado springs,realty colorado springs

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Deployed Military Personnel Get 1 Year Extension on Tax Credit

Normal Home Buyer Tax Credit deadlines are April 30 to be Under Contract and Closed by June 30 of 2010.

However for qualified service members who are ordered on a period of official extended duty, these dates are extended for one year.

For these home buyers, the tax credit applies to sales with a binding sales contract in place on or before April 30, 2011 and closed by June 30, 2011.
A person who is forced to return to the U.S. for medical reasons before completing an assignment of at least 90 days of qualified official extended duty outside of the United States may qualify for the one-year extension.

William Szilagyi WIlliams HomeSellers LLC www.ZColorado.com 719-646-2634 colorado springs home values,colorado springs homes for sale,colorado springs housing,colorado springs real estate,colorado springs realtor,colorado springs realty,foreclosed homes colorado springs,foreclosure colorado springs,fort carson housing,fort carson real estate,home values colorado springs,homes colorado springs,homes for sale colorado springs,housing colorado springs,mls colorado springs,mls listing colorado springs,mls listing colorado springs,property colorado springs,realtor colorado springs,realty colorado springs

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Rates Rise and Home Buyers Rush to Purchase

Days of record low mortgage interest rates over?

The average mortgage interest rate in the Colorado Springs Real Estate Market increased substantially over the last week, moving up fron below 5% to 5.3%. Rising mortgage rates impacts a buyers purchasing power for Colorado Springs Real Estate and reduces the pool of would-be buyers.

It's all about affordability. Genreally, for every 1 point increase in mortgage rates a buyer's purchasing power is reduced by about 10 percent. For every 1 percentage point rise in rates, 300,000 to 400,000 would-be buyers are priced out of the market in a given year, according to the National Association of Realtors.

For Colorado Springs Home Sellers, putting their homes on the market this spring, rising rates may actually be a good thing. Buyers are racing to complete their purchases and lock in loans before the go up much more. Home buyers, in the short term, will be less likely to worry about a few thousand dollars in the negotiations and be more focused on locking in a reasonable rate.

Consumer info provided by William Szilagyi WilliamsHomeSellers LLC www.ZColorado.com www.WilliamsHomeSellers.com 719-646-2634 colorado springs home values,colorado springs homes for sale,colorado springs housing,colorado springs real estate,colorado springs realtor,colorado springs realty,foreclosed homes colorado springs,foreclosure colorado springs,fort carson housing,fort carson real estate,home values colorado springs,homes colorado springs,homes for sale colorado springs,housing colorado springs,mls colorado springs,mls listing colorado springs,mls listing colorado springs,property colorado springs,realtor colorado springs,realty colorado springs

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Colorado Springs Real Estate Market Statistics Updated for April 7, 2010

Click here for this week's updated Colorado Springs Real Estate Market Statistics.

Courtesy of William Szilagyi Williams HomeSellers www.WilliamsHomeSellers.com www.ZColorado.com 719-646-2634 colorado springs home values,colorado springs homes for sale,colorado springs housing,colorado springs real estate,colorado springs realtor,colorado springs realty,foreclosed homes colorado springs,foreclosure colorado springs,fort carson housing,fort carson real estate,home values colorado springs,homes colorado springs,homes for sale colorado springs,housing colorado springs,mls colorado springs,mls listing colorado springs,mls listing colorado springs,property colorado springs,realtor colorado springs,realty colorado springs

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Search Colorado Springs Real Estate For Sale

Click Here to search ALL Colorado Springs Real Estate listings for sale. Create a property orgaizer and get up-the-minute notifications of brand new listings when they come on the market.

Resource provided by William Szilagyi Williams HomeSellers LLC www.WilliamsHomeSellers.com www.ZColorado.com 719-646-2634 colorado springs home values,colorado springs homes for sale,colorado springs housing,colorado springs real estate,colorado springs realtor,colorado springs realty,foreclosed homes colorado springs,foreclosure colorado springs,fort carson housing,fort carson real estate,home values colorado springs,homes colorado springs,homes for sale colorado springs,housing colorado springs,mls colorado springs,mls listing colorado springs,mls listing colorado springs,property colorado springs,realtor colorado springs,realty colorado springs

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Health Care May Effect Your Interest Rate

Far fetched- not really. There is an inverse relationship between Bond Prices and Interest Rates.

As our illustrious government spends us into oblivion, there is much talk of the USA loosing it's AAA credit rating; however even if we maintain it, our national debt is mounting as program after program, entitlement after entitlement and earmark after earmark is added on.

Rising debt means rising risk which, in-turn, pushes bond prices down to increase their yields to compensate for additional risk. As bond prices go down, rates go up and we are seeing them creep up ever-so-slightly.

"Interest rates for fixed mortgages rose this week following a run up in long-term bond yields, while ARM rates eased slightly," said Frank Nothaft, Freddie Mac vice president and chief economist.  "Rates on 30-year fixed loans were the highest since the starting week of this year."

If you are speculating on the right time to purchase a home, interest rates should weigh heavy in your equation. Certainly as rates rise, affordability drops.

Opinion by William Szilagyi Williams HomeSellers www.WilliamsHomeSellers.com www.ZColorado.com 719-646-2634 colorado springs home values,colorado springs homes for sale,colorado springs housing,colorado springs real estate,colorado springs realtor,colorado springs realty,foreclosed homes colorado springs,foreclosure colorado springs,fort carson housing,fort carson real estate,home values colorado springs,homes colorado springs,homes for sale colorado springs,housing colorado springs,mls colorado springs,mls listing colorado springs,mls listing colorado springs,property colorado springs,realtor colorado springs,realty colorado springs

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Home BuyersTax Credit...T Minus 30 Days and Counting

If you have been on the fence, Get off! There is now 30 days left to get pre-qualified, shop for a house and get under contract by April 30 to take advantage of the Homeowners Tax Credit.

William Szilagyi WilliamsHomeSellers www.WilliamsHomeSellers.com www.ZColoraado.com 719-646-4987 colorado springs home values,colorado springs homes for sale,colorado springs housing,colorado springs real estate,colorado springs realtor,colorado springs realty,foreclosed homes colorado springs,foreclosure colorado springs,fort carson housing,fort carson real estate,home values colorado springs,homes colorado springs,homes for sale colorado springs,housing colorado springs,mls colorado springs,mls listing colorado springs,mls listing colorado springs,property colorado springs,realtor colorado springs,realty colorado springs

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