The feeling that foreclosure is looming over you, clouds everything in your life. About 25 percent of homeowners in this country have found themselves facing a foreclosure as an alternative to unmanageable mortgage debt.

An estimated one fourth of the all U.S. homeowners are upside down on their mortgage – meaning they owe more on their home than they could sell it for in today’s market. Often times, the best solution for a homeowner in this type of situation is what we call a short sale. As short sale is when a bank agrees to accept less than what is currently owed on the mortgage.

I am distinctly qualifed to help navigage the entire landscape of foreclosure-avoidance solutions. If you are ready for a fresh start and determined to avoid scams, I invite you to e-mail me at John@bendallgroup.com and we can help you like the many we have help over the last 5 years.

Don’t wait – now is the time to point your future towards blue skies!

John Bendall

Broker/Owner

RE/MAX Classic Group

908-231-0700

When the real estate bubble burst, neither lenders nor legislators had any idea of what the fallout was going to be.

The unfortunate truth is that millions of Americans lost their homes and millions more are facing foreclosure. There are options to keep this from happening, and I am well versed on the range of alternatives available.

As a Realtor who has been licenced since 1986, sold over 1300 homes and a distressed property expert I have been helping homeowners who are feeling the stress of an unaffordable mortgage. If you or anyone you care about is wondering where to turn and call me and my team. We have helped a ton of families through these tough times.

It is my mission to help homeowners facing tough circumstances, and I would truly appreciate your taking the time to refer any homeowners you know who could benefit from my help. I’m sure that they would appreciate it, too. The sooner they contact me, the more time we’ll have to develop a strategy to get them back on track to financial stability.

Call the office at 908-895-1898

Due to the sun finally showing itself the construction of the 1st ever RE/MAX Classic ARK has been postponed.  The Ark which was started yesterday afternoon as a means of getting to Toms River was 10% complete when the rain finally stopped. We had just gotten a pair of cats to add to the Llamas and Giraffe that were dropped off yesterday. ”We were ready to go,” said RE/MAX Classic owner John Bendall. “Getting that Giraffe back off the Ark turned out to be a bigger challenge than we anticipated”.

Long necky

 Is it a good time to refi????

Despite doom-and-gloom reporting, not every homeowner in the U.S. has negative equity right now. And with interest rates still hovering near record lows, those with equity are likely asking themselves whether it’s a good time to refinance. Well, is it? Let’s take a look:

• Average interest rates on 30-year fixed-rate mortgages fell to 4.51% a week ago (according to the Mortgage Bankers Association’s latest survey), the lowest level since last fall.
• The average outstanding home loan carries an interest rate of about 6% (Freddie Mac’s Chief Economist Frank Nothaft told The New York Times last week).

So if you took advantage of low rates last fall or in 2009, you probably won’t see much savings by refinancing now. But if you haven’t yet refinanced since 2008, you might want to check in and see what kind of savings refinancing might afford you.
 
Cashing out: What’s enough equity?
 
Refinancing used to almost always mean the owner was taking some cash out in the process. That’s because values had climbed pretty steadily (and steeply in many areas) for several years in a row – so most homeowners could afford to cash out to maybe send their kid to college, work on a new addition to the house or remodel. But today, the story is much different.
 
Even if you have equity, it may not have climbed enough for cashing out to make sense. In fact, the NYT reports that some owners are even putting cash in to up the equity on their homes.
 
So what’s enough equity by today’s standards? Times have changed and 20% is once again a magic number. Many lenders aren’t even going to allow you to cash out if it means dipping below that.
 
Refinance options for the equity starved
 
OK, but what if  you have less than that? Can you still refinance to take advantage of low rates?
 
The good news is that there are some programs out there that may make this possible. If you have little or no equity, you can ask your lender about the Home Affordable Refinance Program. If you have an FHA loan, you can check out FHA Streamline Finance, which may make sense for you.
 
So even if your equity is pretty low, there are options. Point is, with rates this low, it’s a good time to sit down and discuss whether refinancing would improve your loan situation. We all know that rates are fleeting and what’s here today may be gone tomorrow.

The economy is improving overall and, as a result, some bright spots are showing up in the real-estate market. However, the foreclosure spike, which began around the same time the recession did, isn’t a distant memory just yet. In many areas, foreclosures are still happening; in some areas, those numbers have increased.

This “second wave” of foreclosures – combined with the fact that many people’s 401(k)s have bounced back with the stock market, and most economists agree that the bottom of the recession has hit – means that competition for these foreclosed homes is, in many cases, fierce. There’s a renewed, final dash to get in on what some perceive as the best real-estate deals they’ll get in awhile. But how do you know which foreclosure is a good buy, and which to walk by? Here are some tips to help guide your clients:

Find a Pro- When looking for foreclosure properties find a Realtor who know the market, the inventory and has some experience in dealing with foreclosures. Having the right Realtor means everything!

Don’t abandon common real-estate logic. Too many people, when shopping for a foreclosure, abandon their real-estate sense and focus on price alone. Remember, things like a sub-par location, poor light, terrible view, below-average school district, high local crime rate and other negatives might be part of the reason why a home went into foreclosure in the first place. Don’t assume that financial problems of the previous owner are the main reason for every foreclosure. The last owner may have bought the home ignoring some of the aforementioned problems, and seen value sink because of them. Don’t ignore those problems, especially if your client is considering selling in the next 5 to 10 years. When we get calls from someone who is looking for a foreclosure the question I most ask is “are you looking for a foreclosure or are you looking for a good deal”. Sometime we find a better deal and fit for our client that is not a foreclosure, right now the market is filled with really good deals and do not forget the low interest rate which is icing on the cake.

Skip – or, at least, very strongly rethink – the flip. “House-flipping,” i.e., buying at bargain-basement pricing, updating, then selling for much higher – is very 2006… and hasn’t exactly been hot since. Even if a house looks like an incredible flipping opportunity, beware of this temptation unless thats what you do for a living. You also better have cash,  there are rules and regulations that the government and most lenders have that prohbits flipping a home with in a 2 year time period.

Go over the budget. A fixer-upper means nothing if you can’t afford to fix it up – and that’s especially true for foreclosures, where those fixes can cost a pretty penny. Before buying, make sure you have an ample budget to do all the repairs needed, after truly taking stock (with the help of a home inspector) of what those needs are.

Do your homework on lenders. Fewer people are getting financing for home-buying than they did before the recession, but good financing is luckily still available to many qualified buyers. Just make sure, as with regular home buying, that you enlist a reputable lender. A good lender will take the time to do a review of your client’s financial life and long- and short-term goals, to truly pick the best solution for them, rather than just spitting out options. Also ask about hidden costs, rate locks, prepayment penalties, origination fees and whether underwriting is done in-house. If you are with a good Realtor they usually have a group of lenders that they know and trust to get the job done, listen to them.

 Buying a home can be both exciting and stressful but, for those with past credit problems, the process may also seem intimidating.  The good news is that many lenders have adapted to the idea that many hopeful homeowners simply need a second chance, which means that past credit problems no longer have to define your future.

Credit Blemishes

When life unexpectedly takes a turn for the worst, it’s not always possible to come out without a few bumps and bruises.  Every day, people are faced with late or missed credit card payments, mortgage foreclosures, bankruptcy proceedings, auto repossessions and even civil judgments that will affect their credit reports for years to come.  Whether it’s from a job loss, injury or just a simple case of temporary hardship, credit blemishes are often a part of life.  The good news is that they no longer have to prevent you from becoming a homeowner.

Give Yourself A Little Credit

After experiencing a credit problem, most lenders will want to see an attempt to rebuild your credit through a steady payment history with a new account.  This can be accomplished by applying for a credit card and maintaining a responsible use of the account.  If you aren’t approved for an unsecured card, you can always apply for a secured credit card.  Either will rebuild your credit over time and will help to show lenders that your past credit problems are just that – in the past.

Clean Up Your Credit Report

Before applying for a home loan, make sure that you check your credit report from each of the three major credit reporting agencies.  Every 12 months, consumers can request a free copy of their credit report from Experian, Equifax and TransUnion.  If anything is incorrect or found to be inaccurate, filing a dispute with the credit reporting agency can help to get the information corrected before speaking with a lender.

When you apply for a home loan, the lender will access your credit report for the purpose of determining your creditworthiness.  In an effort to ensure that you have the best possible chance at being approved for the loan at the best possible interest rates, making sure that your credit report is accurate is a must.

Save Up For A Down Payment 

Some homebuyers often qualify for a mortgage with down payments as low as five percent (three percent for FHA loans), but those with past credit problems may be required to shell out up to 35 percent or more for a down payment on their new home.  A buyer who pays a larger down payment obviously has more vested interest in the home and may, thereby, be less likely to default on a loan.  If you have past credit problems, check with your lender about specific down payment requirements and start saving!

Creative Financing Options

If you’ve exhausted all of your conventional efforts and are still turning up empty, don’t give up just yet.  Alternative financing is an option that many homebuyers use to purchase a home.  Your REALTOR® can provide you with details regarding any lease purchase and/or owner financing properties, which may require no credit check, no bank qualifying, a low down payment and competitive interest rate options.

The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury released the October edition of the Obama Administration’s Housing Scorecard. The latest housing figures show continued signs of stabilization in house prices and high home affordability due in part to record low interest rates. The housing scorecard is a comprehensive report on the nation’s housing market. “Over the last 21 months, the Obama Administration’s swift action in the housing market has kept millions of families in their homes and provided responsible borrowers with incentives to refinance or to become a homeowner,” said HUD Assistant Secretary Raphael Bostic. “But, with many unavoidable foreclosures still in the pipeline, it’s clear that we have a hard road ahead. That’s why we’re focused on successfully implementing the programs we’ve put in place—such as additional assistance on refinancing and helping unemployed homeowners stay in their homes—and ensuring that help is available to homeowners as soon as possible.” “HAMP is not only an important part of the Administration’s efforts to stabilize the housing market, it has also redefined the loan modification standard for the mortgage industry overall. That has led to more than 3.5 million modification arrangements directly benefitting families in communities across the country still healing from the crisis,” said acting Assistant Secretary for Financial Stability Tim Massad. “Early data shows that well beyond the trial phase, the majority of homeowners are maintaining their HAMP modifications, reflecting the rigorous standards the program uses to provide assistance to responsible homeowners.” The October Housing Scorecard features key data on the health of the housing market including: -Families continued to benefit from the lowest rates in history on 30-year fixed mortgages. Since April 2009, record low interest rates have helped more than 7.1 million homeowners refinance, resulting in more stable home prices and $12.7 billion in total borrower savings. -As expected with the expiration of the Home Buyer Tax Credit, new and existing home sales remained below levels seen in the first half of 2010. At the same time, home prices remained level in the past year after 33 straight months of decline and homeowners added $95 billion in home equity in the second quarter. -More than 3.52 million modification arrangements were started between April 2009 and the end of August 2010—nearly triple the number of foreclosure completions during that time. These included more than 1.3 million trial Home Affordable Modification Program (HAMP) modification starts, more than 510,000 Federal Housing Administration (FHA) loss mitigation and early delinquency interventions, and more than 1.6 million proprietary modifications under HOPE Now. While some homeowners may have received help from more than one program, the number of agreements offered nearly tripled foreclosure completions for the same period (1.3 million). -At nine months, almost 90% of homeowners remain in their permanent HAMP modification, with 11% defaulted. Early data indicate that HAMP permanent modifications are performing well over time, with lower delinquency rates than those reported by the industry at large. At nine months, less than 16% of permanent modifications are 60+ days delinquent. Data in the scorecard also show that the recovery in the housing market continues to remain fragile. For example, foreclosure completions continue to move upward and a large supply of homes are being held off the market. While the recovery will take place over time, the Administration remains committed to its efforts to prevent avoidable foreclosures and stabilize the housing market.

Here we are going into the 1st week of October and I am still being asked the same question over and over since the beginning of summer… Is now a good time to buy????

 Is now a good time to buy? Yes, even if prices continue to drop! And here is why…. I know in some markets prices are still dropping slightly (although they have gone up slightly during the last 2 months) but is it a good time to buy? The answer is a resounding yes!!! I  stated this in one of my posts over the summer, if you bought a $200,000 dollar home (and for the purpose of illustration obtained a $200,00 loan), and the housing drops 10% in the next year the math is easy, you just lost $20,000. BUT- and this is a big BUT- if you obtained a loan today for the house at 4.25% and if that same loan in one year costs 6% then the difference in payment is a lot less if you buy the house now! ($200k @ 4.25% = $984 payment vs $200k @ 6.0% = $1,199) for a difference of $215 every month. Over 30 years that difference is a whopping $77,400!!! One thing we have been assured of is that interest rates have to and eventually will be going up as the economy improves. Also every time the interest rate goes up 1 point that lowers your spending power by 9%. So if today you were looking to buy a $200,000 home but waited and the interest rate was now at 6% your spending power would be lowered 15.5% so you would be buying a $169,000 home. In most markets that’s a big difference in homes.

 Did I mess up by missing the Obama tax credit???

 At the end of April (when the tax credit expired) the interest rate was hovering around 6% so as state above and before you would be spending $77,500 more if you bought a house on April 30th vs today.

 Despite what you read and hear, homes ARE selling. Our company has been having a stellar year selling lots of homes for our sellers and finding quality homes at good prices for our buyers. We also have become experts at distressed sales (short sales) and we even have a few bank owned home (REOs). So if you are looking to buy or sell and move up…this is a good time!

 Tips for Getting Your Home Ready for Fall

Now that summer is beginning to wind down and cooler weather is on its way, it’s time to get some of the routine home maintenance out of the way before it gets too cold. If you don’t prepare your home in the fall season, and clean up the yard, when spring comes along, you could be left with an unsightly mess. Here are some tips to prepare your home for the cold months ahead.

Clean out the rain gutters – If you have rain gutters on your home, fall is the best time to get them cleaned. Cleaning rain gutters isn’t that difficult of a task, it’s just a tedious one. The easiest way to get rid of the junk is to use a high pressure hose, and then use a small trowel to get rid of the rest of the debris. Once you have gotten rid of all the debris, give your gutters a final spray.

Take care of your pots and planters – If you’re like most homeowners, you have some planters or potted plants sitting around the yard. Before it gets too cold, be sure to empty the dirt out of any pots or planters and put them in a place where they won’t freeze. If you don’t empty or store your planters, there’s a good chance they will either crack or fall apart.

Rake the leaves – Keeping your yard free of leaves is an important task for homeowners. If you have numerous trees in your yard and piles of leaves that you don’t take care of, you might find that your grass is dead once spring arrives. Leaves can smother your lawn and replacing a lawn can cost a lot of money, so it’s a good rule of thumb to get rid of the leaves in the fall.

Weed and feed the lawn – The best time to weed and feed the lawn is in the fall. If you add weed killer in the fall, the weeds will store the poison in their roots during the winter season, and will prevent a breakout in the spring. By feeding your lawn with fertilizer in the fall, you are promoting healthy root growth, and this will help your lawn grow greener and faster in the spring.

Give your tools a tune-up – Once you have finished your fall maintenance chores, make sure you clean your tools and store them in a dry place so they will be in working order once spring arrives. Be sure to store metal shovels with the head upwards, as this will help detour rusting when it dries. Sheers need to be oiled up, wheel barrels should be left upside down and don’t forget to spray off the underside of the lawnmower.