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30,000 BORROWERS IN TEXAS COULD GET A BREAK FROM BAD COUNTRYWIDE LOANS
NEW YORK (New York Times) – Countrywide Financial, in an effort to resolve lawsuits against it, has launched the largest program ever to help struggling homeowners in Texas and ten other states.
The lender, recently acquired by Bank of America, will provide a total of $8.7 billion to borrowers, $8.4 billion of which will be through direct loan relief that will affect about 400,000 people. Countrywide will also waive $79 million in late fees and $56 million in prepayment penalties, and suspend foreclosures on delinquent borrowers with the riskiest loans. A foreclosure relief fund will be created with $150 million from Countrywide to help borrowers who are four or more months behind on their payments or whose homes have already been foreclosed on. Additionally, Countrywide will reduce principal balances in some cases and cut interest rates in others.
To qualify, the borrower's first payment must have been due between Jan. 1, 2004, and Dec. 31, 2007. The loan balance must be at least 75 percent of the current value of the home, and the borrower must be able to afford the adjusted monthly payments.
Here is something you won't see on the news..... Latest stats from the National Association of Realtors, who have been tracking market conditions since 1979, show that home buyers are responding to lower prices in many of the hardest hit areas. Comparing the second quarter 2008 to first quarter 2008- number of sales are up 25% in California, 25% in Nevada, 20% in Arizona and 10% in Florida. These are the same areas where prices have dropped 30-35%. It appears that buyers are returning to those markets, and therefore most of the price declines have already occurred. This tells me that the bottom of the market has passed in those areas, and excess supply will start to be eliminated, slowly but surely.
The recently passed Homeowner Relief Bill may help speed up the recovery. The First Time Home Buyer Tax Credit (you qualify if you have not owned a home in the past 3 years) is in effect through June 2009. Another stimulus to sales would be gently rising mortgage rates. History has shown, surprisingly, that more buyers will act when rates are going up than when they are going down or flat. Most experts feel that rates will be on the rise next year.
Closer to home, in Austin things are competely different. July 2007 to July 2008 saw the average home price rise 3% to $195,000. However number of sales is down 21%. How can that be? Well, it appears that there are more higher priced homes being sold than ever before, driving the average up. Austin still has positive job growth, in fact double the national average, and a growing population which has kept the overal housing market healthy. Individual neighborhoods though, vary greatly. The demand for downtown and urban areas is greater than ever, with less than 30 days on market the norm. Many of the outer perimeter areas were overbuilt, and thus some have over 12 months supply of homes, a great buyers market. There are many exceptions though, and it is almost impossible to generalize. The bottom line: each neighborhood and property needs to be analyzed individually. All Real Estate is Local and though general market conditions have an effect, what you will ultimately pay for a home is determined by Micro-Markets: The area of the city, the neighborhood, even down to the particular street or side of the street. This is where a professional can offer valuable insight.
Tips For Buying in a Slow Market
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Trying to time the market to buy at the absolute bottom is impossible, since we can only identify that point when it has passed. Right now, there is downward pressure on prices in many parts of Austin. As soon as the perception is that things have "bottomed out" there will be upward pressure on prices, and your bargaining power is lessened.
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Some GREAT deals are being made in areas with a large backlog of builder spec homes.
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Financing is still available at historically low rates, but rates are expected to creep back up once the economy stabilizes. A one percent increase in the rate will affect your buying power more than thousands off the sale price.
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If you are willing, ready and able to buy you have a fantastic opportunity right now. Or will you say "I wish I would have bought back in 2008!"
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Helping you get the best value for your money is my primary goal. Over the past 17 years I have helped hundreds of people buy a home. If you choose to work with me as your Buyer’s agent I will use all of that experience and knowledge to your benefit. From exploring neighborhoods to negotiating a contract and closing, I will be looking out for you and advising you.
While you can see a million homes on the web, actually buying your home is another matter entirely. Every local real estate market is different, even one neighborhood to the next. It's my job to find the opportunities and inform you of any concerns or potential problems. As a resident and professional in the Lake Travis/Lakeway area my knowledge and insight will be invaluable to you, not just in terms of real estate, but also schools, neighborhoods, the local economy, and more.
In addition I will:
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Help you choose locations and properties according to your criteria.
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Tirelessly seek and preview homes, drive neighborhoods, and uncover the gems for you.
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Save you time by previewing homes when possible, eliminating those that do not fit your personal taste or criteria.
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Negotiate the final contract to include your best possible terms and conditions using current market conditions to your advantage.
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Review all documentation, disclosures, surveys etc. You will get my honest opinion of price, condition and value.
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Manage your transaction from start to finish, coordinate with the other parties involved and communicate the progress to you.
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Take all the time you need to find the perfect property.
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Pass along to you any Agent’s bonus on the house you buy!
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