Atlanta Real Estate Blog

This past week my team closed another short sale.  The best part was the closing occurred on the original date placed in the buyer’s offer.  The offer came in on 3/03/2009 and we had bank approval on 3/18/2009. Further more, no deficiency note was required by the lender to be signed by the seller.  This particular home had a first and second mortgage with the second mortgage holder receiving $10,000 on a balance of more than $250,000.  The first was fully satisfied.

Are you trapped in a home that is upside down and you are facing significant financial hardship? If so, call my team now at 404-372-8462.  We specialize in short sales.

The spring market has sprung here the northern Georgia/Metro Atlanta area.   Like it or not, this spring market is very different than most.  While overall inventories of homes are down, the number of qualified buyers is down even more dramatically.  One might argue that this equation is about to change and we may be carving out a bottom in pricing (different discussion).  Either way, we have dropped to price levels last seen in 2002 according to the latest S and P Case Schiller Price Index.

1. Sell the home for market value and bring cash to the table (if they have funds)
2. Wait for the market to appreciate (no telling when this will happen)
3. Walk away from the home and foreclose
4. Place the home on the market and negotiate a short sale with your lender (s)

My focus is on number 4.  The Short Sale.  This option is one that takes very careful consideration.  Every homeowner should consult an attorney and CPA for advice about the implications of selling a home as a short sale.

Are you looking for a great prospective on the current real estate market?  Check out the latest video posted from Dan Forsman, the CEO of Prudential Georgia Realty.

http://www.atlantarealestate2009.com/

RATE UPDATE: 30-year fixed mortgage interest rates are the lowest they have been since WWII.  I have seen purchase rates as low as 4.25% on the 30-year fixed rate mortgage.

I have been successfully helping sellers avoid foreclosure or get out of home that they were under water on for quite a while now.  The primary tool that I have been using has been called a “short sale” where we sell the home for less than what is owed on the home.  This is a fine option for homeowners who need to move and have no desire to stay in the home.  For some, staying in the home would have been preferred but there were little to no options available at the time.

Lenders are now offering homeowners what are called “loan modifications”. Loan modifications are becoming more popular since they are a win-win for everyone and the homeowner gets to stay in the home.  This option is perfect for those who have suffered a loss if income but can still afford some of the monthly loan obligation.  They are also useful for those who no longer qualify to refinance with today’s more stringent guidelines.

If you are facing increasing monthly payments, loss of income, owe more than the home is worth, and you would like to stay in your home…call me today to find out more about loan modification.  Having a professional on your side who is knowledgeable about the process is crucial in obtaining the most beneficial loan modification.  Understanding the lingo and negotiating the terms are just some of the services we can offer.

In case you have not heard, now is a great time to buy real estate in the Atlanta Metro Area.  Prices have fallen and sellers far outweigh the number of buyers.  This comes at a time when mortgage interest rates are at historic lows.  For those who think the worst is yet to come and you are trying to time the bottom, consider that a 1% increase in interest rates will make a home more expensive to own than an additional 10% price decline.  The real question you need to answer is how long will mortgage rates will remain this low…

If you are wise enough to recongzie that now is the time to buy, I have two luxury listings that are priced below the competition and below the market.  Both are considered short sales where the asking price is below the total mortgage balance and any outstanding liens.  Any offers must be contingent on the lenders accepting the short pay.  The good news is that lenders have really ramped up staff and the entire process moves much faster.

First Home:

Creekstone Estates for $675,000. For more detais: www.mattnewman.com/FM3779631

Second Home:

Laurenbrooke for $475,000. For more details: www.mattnewman.com/FM3851741

If you would like more information on either of these two homes or if you are looking to find out more about short sales, contact Matt Newman today at 404-372-8462.

We are well into 2009 and what this year has in store for Atlanta Real Estate is yet to be determined.  What I can tell you is that current trends continue to show a decline in home sales, a decline in home prices, but also a decline in the number of homes listed for sale.  January 2009 was not such a hot month for the North Fulton real estate market or anywhere in the metro Atlanta area. In fact, we had the fewest number of closed home sales for any month as far back as I have data for.  January seemed to be a great month for mortgage lenders who are riding a nice refinance boom (based on my personal observation of lenders I personally know).

So, what does the rest of 2009 have in store?  If I knew, I would be one rich person!

What I do know is that the supply of sellers far outweighs the supply of buyers, interest rates are the lowest we have ever had in history and the government will give first time home-buyers $8,000!  Sounds to me like a buyer can really take advantage of the current conditions.  Now, some buyers might be waiting for a larger housing stimulus from the gov’t but keep in mind if we get a tax credit open to all buyers…suddenly the supply of buyers will increase and the equation will not be as favorable for buyers as the competition for the most attractive listings increases.

Even with such a large supply of sellers on the market, only a true professional can help a buyer find the most motivated sellers in the market.

The Monthly S & P Case Shiller Index has just been released for September and not surprising, Atlanta has seen a decline in home values.  We are now on par with prices last seen in Summer of 2004.  While this seems like bad news, buyers now have more opportunity to enter the real estate market.  This news along with near historically low mortgage rates makes now one of the greatest times to buy a home.

What about those who want to wait for prices to lower further?  If you wait until after Jan. 1, 2009 to close on a new home in Georgia, you will miss the deadline to qualify for a homestead exemption on your 2009 tax bill.  Secondly, we do not know when prices will begin to rise again.  Atlanta is a very seasonal market and if some demand returns this spring, we may see a slight stabilization in our home values.  In addition, the dramatic slowdown of new construction will keep inventories from growing significantly.  The real unknown are mortgage rates.  Even with further declines in prices, a rise in rates into the 6 percent range can make a home more expensive to purchase moving forward.

Want to know more about the Atlanta market?  Call me today at 404-372-8462.

Some good news this morning from S & P as the Case-Shiller Home Price Index for the Atlanta market is trending in the positive direction.  This is the third straight month with a positive increase in this index which bottomed out in April of 2008.  July’s numbers are on par with the price index seen in April of 2005. Could we be coming slowly out of the bottom?

With more and more homeowners finding themselves in situations where they have to sell but owe more on the mortgages than their current home is worth, the need for experienced short sale agents is on the rise.  It is crucial that sellers deal with an agent who has experience dealing with loss mitigators from banks, marketing short sale listings and just a good understand the entire process. It can mean avoiding foreclosure and the embarrassment that comes along with having your name and address published for month straight in the paper that your home will be auctioned on the courthouse steps.

You can view some information on the short sale section of my web site here.  Also, feel free to call me directly at 404-372-8462.

Not everyone will qualify for a short sale but it is an option certainly worth checking out.

Many homeowners who fall behind on their mortgages for a number of reasons need to be aware that there are options.  A short sales is one option to help homeowners avoid foreclosure.  Under certain circumstances, lenders will consider taking a lower payoff on a mortgage which allows the homeowner to sell the home before the lender forecloses on the home.  The short sale process can be complicated and intimidating and that is why sellers need to contact Realtors who have experience in short sales.