Raleigh-Durham Real Estate Blog

Attention all Homebuyers: Act now before the market for mortgage financing changes. 

3 upcoming changes that are scheduled to take effect within the next 2 months may affect your future mortgage financing options. Get in now while the “gitting is good”.

• The Fed has indicated an intention to stop the purchase of mortgage-backed securities at the end of March, which could push mortgage interest rates higher for all buyers.
• FHA has committed to increasing its upfront mortgage insurance premium (MIP) from 1.75%-2.25% starting for all loans originated on or after 4/5/10. This will increase your closing costs by $500 for every $100,000 borrowed on an FHA loan.
• The first time homebuyer $8000 tax credit and current homeowner $6500 repurchase tax credit will expire for buyers who are not under contract by 4/30/10 and who close by 6/30/10. Remember, you have to have your purchase in process by 4/30/10 to qualify for the tax credit. So, if you’ve been sitting on the fence, now is the time to act. Our lenders can close your FHA loan in 3 weeks or less, so call today. In addition, you may want to accelerate your timeline to find a property before the end of March if you want to avoid all 3 of these potential changes that can add to your cost of buying a home.

Attention all Investors... CASH IS KING – Consider buying your next property with cash and refi to get a better price.

Below is an interesting article on REO/asset manager preferences when selling REO property. Lenders are fickle nowadays, and a deal can fall apart with the wrong lender or wrong appraiser.  REO managers know this and are leaning toward cash offers in some cases, even if it means a slightly lower sales price.  In what could already be the ideal buyer’s market, many would-be homebuyers, armed only with financing, are coming across stiff competition -- real estate investors with the means to pay for a home in cash. Keep in mind that most banks still seek to net as much as possible on the sales of their non-performing assets, so this won't work in all cases.  If you really want the property, make sure to put in your best offer, BUT a cash offer may be a way to seal the deal.  http://www.ncrealtors.org/news_display.cfm?nid=1216

Bad Things Happen To Good People

Call us today if you are underwater or behind in payments on your home, commercial property, or rental property. We are the shortsale experts. Our team has been resolving foreclosures in the Triangle since 2003, well before the current market correction. Options are most plentiful the earlier you engage professional assistance. Visit our testimonials page for feedback from recent foreclosure and shortsale clients our team has assisted.

New EPA rules for renovations
Lead based paint poisoning has been a rising concern in the US. On April 22, 2010, the EPA and the state of North Carolina will require contractors, painters and maintenance workers to be trained and certified as renovators if they disturb paint in homes and child-occupied facilities that were built before 1978. Contractors will also be required to train their workers to follow lead-safe work practices to reduce potential lead exposure to protect children. If you are fixing up a pre-1978 property and hire a contractor  or subs for renovations, be sure to confirm that they are certified by the state to complete your project. I recently sat through the certification class and although “lead paint” initially wasn’t a topic I would have had in mind as a preference for an 8-hour class, the information gathered was eye-opening. Take a guess, for instance on how much lead it takes to poison a child. The amount is incredibly small: only 10 micrograms per deciliter of blood.

If you're metrically challenged (as am I), here's a way to visualize what that means.

• A deciliter is approximately 1/2 of a cup.
• A packet of sweetener (either the pink or blue stuff) is one gram.
• There are one million micrograms in a gram.
• So, divide the stuff from one packet into one million piles. (Pretend!)
• Now, discard 999,990 of those "piles."
• Take the remaining 10 piles and mix them into half a cup of liquid.

Voila! You now have a representation of how much lead it takes to poison a child.

Now consider how much potential lead dust and debris is airborne in your home during a typical renovation project, or even small routine maintenance, like changing out a window. Protect your family by making sure your renovations and maintenance work are completed with the EPA precautions in place. Require that your contractor is certified. Visit the EPA site for more information on the Renovation, Repair and Painting (RRP) Program