Archives: August 2012

How Long Do I Have to Wait Before We Can Buy Again?

>The question concerning people who’ve had a foreclosure, short sale or bankruptcy is when they will be able to qualify for a mortgage loan.  It takes different amounts of time to heal credit scores based on the event.


The following chart is meant to be a general guide for how long a person might have to wait.  During this waiting period, it’s important that the person be current on all payments and maintains a history of good credit.


























































 



FHA



VA



USDA



FNMA/Freddie Mac



Jumbo



Foreclosure



3 years



2 years



3 years



7 years



7 years



Deed-in-Lieu of Foreclosure



3 years



2 years



3 years



2 years

<80%



4 years

81-90%



7 years

> 90%



7 years



Short Sale



3 years



2 years



3 years



2 years

<80%



7 years

81-90%



7 years

> 90%



7 years



Chapter 7 Bankruptcy



2 years



2 years



3 years



4 years



7 years



Chapter 13 Bankruptcy



1 year



1 year



1 year



2 years



7 years



A recommended lender can give you specific information regarding your individual situation and can make suggestions that will improve your ability to qualify for a mortgage.  We want to be your personal source of real estate information and we’re committed to helping from purchase to sale and all the years in between.

Fix It Anyway!

“If it isn’t broke, don’t fix it” is certainly popular advice, but if you’ve ever had a serious plumbing leak, you certainly wished you had taken care of the problem earlier.


Washing machines, like all appliances, are supposed to work and when they don’t, it’s time to have them fixed or replaced. However, there is a critical connection from your water supply that may even be older than your washing machine itself.


Ask someone whose hose broke while they were asleep or out of town and you’ll hear stories of how quickly the water can damage walls, flooring and furniture. Almost anyone can replace the hoses with a pair of pliers for under $30.00 to avoid this potential catastrophe.


As you’re shopping for the replacement hoses, consider the braided stainless steel connectors. The advantage is that the stainless steel offers additional protection should a soft spot develop in the hose beneath. They’ll cost a little more but offer considerably more protection for a nominal price.

If I’d Only Bought…

We’ve probably all said or at least thought “if I knew then, what I know now, I would have done things differently.” We should have stayed in school longer. We should have listened to our parents. We should have bought Apple stock in 2002 for $8.50 or gold in 2000 for $300.


Years from now, if we look back at 2012, it may be clear that this was the best buyer’s market ever. The prices are down nationwide 35-40% from four years ago, mortgage rates have never been this low and rents are rising. Few homes have been built in recent years to keep up with a growing population. There may never be a better time to buy homes than now.


The housing affordability index which is considered to be good at 100 has increased to over 200 for several months. Shrinking inventories and rising prices in some markets are causing the index to fall for the first time in years.


This ‘buying” opportunity applies equally to acquiring a home to live in or to rent as income property. It is estimated that about one-third of the homes purchased last year were done by investors. It is reasonable because the positive cash flows far exceed most other investment alternatives.


The question we’re all faced with this year is whether we’ll be saying we seized or missed an opportunity of a lifetime.