What is a Short Sale?

Among the real estate questions I am getting beside "How is the Real Estate Market?" is what is a Short Sale? By definition, a short sale is a work out program that allows borrrowers to sell their property, even if the proceeds are less than the loan payoff amount due to low property value. The lender will usually agree to this arrangement if they feel that it will result in a lesser loss than going thru Foreclosure, or deed-in -lieu, and is faster and less expensive.

Short Sale, Foreclosure and Deed-in-Lieu can all have a significant impact on a homeowners credit. How banks handle each of these scenerios can be different. Be sure to consult your lender or a real estate attorney to investigate all options.

Call me to answer your questions on Short sales, including where to get started or any other real estate questions you may have.

Market Update in the Twin Cities

August showed a 15 percent increase in pended sales year -over-year for the second consecutive month in the Twins Cities housing market. (Pended sales are accepted offers on properties that have not yet closed ). The good news is that the number of homes for sale in the 13 county metro area is down 9.2 % from August of last year. This trend is what we need to help stabilize home prices.

According to the Minneapolis Area Association of Realtors, we saw in September large increases in activity in the lower price ranges. This is likely the result of sales in foreclosure and short sale properties. With the lower interest rates and price pressures it makes affordability is 19% ahead of last year at this time.

New Carbon Monoxide Detector Law

A new State law requires carbon monoxide detectors in all single family homes.


What is Carbon Monoxide?

it is a toxic, colorless and odorless gas that interfers with the delivery of oxygen throughout the body.

Sources of Carbon Monoxide:

• gas water heaters


• woodstoves and fireplaces


• unvented kerosene and gas space heaters


• leaking chimney and furnaces
• gas stoves


• exhaust from cars in attached garages


• back drafting from furnances

Symptoms:

• flu-like symptoms- headache, dizziness, weakness and fatigue.


• at higher levels- confusion, disorientation, impaired vision, and coordination, brain damage, coma, and death.

Types of Detectors:

• varieties include plug in and battery-operated. Make sure it meet Underwriters Laboratories Safety 2034.

Place each detector within 10 feet of each room used for sleeping.

Check your Credit Report

Under the Fair and Accurate Credit Tranactions Act, every American is entitled to a Free Credit Report annually from each of the 3 main credit bureaus. TIP: Even though this report is a free report your actual credit score does not come with this report. You'll have to purchase it for about $6 apiece from each bureau. You may also find that your credit score may vary within each bureau. This is all based on what information the bureau has on you. If you are considering purchasing a home this is a good place to start in getting your finances in order, if you not planning on a move it is also a good idea to check you credit periodically.

• Equifax~equifax.com (800) 685-1111



• Experian~ experian.com (800) 397-3742



• TransUnion~ transunion.com (800) 888-4213 or

Go to annualcreditreport.com (877) 322-8228.

1 in 4 credit reports contains a serious error that could lower your score and stop you from getting a loan, or one with the best terms. source: Public Interest Research Group

It is never too late to check your report -any questons please contact me.

Buy Now or Wait? How about a $7500 Tax Credit!

This seems to be a Hot Topic among First Time Homebuyers and their agents. Should I buy now or wait until later? Here is some good news that may help you in making that decision. The Housing and Economic Recovery Act of 2008, signed into law on July 30,2008, offers a $7500 First Time Home Buyer Credit to those who qualify. The law provides a tax credit equal to ten percent of the qualified home purchase price. This credit is essentially an interest- free loan that is required to be repayed over time (without interest) over a 15 year period. What a great incentive to purchase that First Home!

For more information on this program please call me for details, or you can check out the website maintained by the National Association of Homebuilders at http://www.federalhousingtaxcredit.com/

If you have closed on a recently purchased home, after April 9th, 2008, you can also qualify for this program.

Burnsville Center Kiosk

FHA Financing is Back!!!

Actually it never really went away. Years ago, a large percentage of metro area home sales were involved with FHA financing. With the advent of alternative subprime mortgages, for which we are hearing about so much in the media, FHA lost much of its marketshare. The FHA program now is back in full force. Area statistics show that FHA loans have jumped in the last month 23% of all first mortgages. That compares to 1.8% two years ago and these numbers are on the rise.

Why is this program so good for First Time Homebuyers? First of all it requires a low down payment, a more lenient qualification guideline and the rates right now are so low it is an incredible deal! There is also the option for the buyer to receive a gift to use for their down payment.

FHA mortgage loans are not just limited to First Time Homebuyers! The FHA Program has been revamped in part from the Federal Governments Economic Stimulus plan. The FHA loan limits have increased to $365,000. Great news or buyers!

If you are not familiar with FHA financing, now is the time to learn. If you would like to receive more information on FHA loans or other financing programs let me know and I will get you in touch with a Mortgage Consultant.