The lighthouse for home value directions, like the stock market, is perpetually dim.

Predicting the rise and fall of stock value is a devilishly difficult, if not impossible, task.   But what moves down, almost certainly will move back up.  By the time most of us are secure enough to return to the market, the most profitable opportunities are somewhere over the horizon, sailing away from us.

The real estate market will rebound.  I know it.  You know it.  We all know it.

The price of the home in Mt Pleasant, Charleston, Isle of Palms or Sullivan’s Island which I help you purchase this week will quite possibly be lower than what you will pay in the not so distant future.

I always advise caution, care and fiscal prudence.

But, don’t you feel in your gut real estate market prices are about as low as they’re likely to go in the Low Country?

Don’t you feel now just may be an excellent time to buy, or invest in real estate?    My mortgage broker friends tell me there is mortgage money available.   My instincts tell me the dark clouds of the past year are beginning to clear away and health will imminently return to the market.

Don’t you have the feeling in the near future we will frequently hear ourselves and others lament, “I wish I had purchased a home, or homes, several months ago?”

The real estate lighthouse is truly dim.   I don’t have special future visionary powers and these are uncertain times.

Did you read Blink by Malcolm Gladwell?  The subtitle is The Power of Thinking Without Thinking.

Do you sense the sky is brightening and 2009 just might be an ideal time to purchase the home of your dreams?

I do.

Rebecca Gooden

Renting the roof over your head has its time and place.

But each monthly payment you make is making the monthly mortgage payment for someone else.  That is fine in many cases.

Buying a home, whether in Charleston or Chicago, is an important decision – whether you are  buying your very first home, downsizing, relocating, or upgrading.    But if you’re stable, in time, place and finances, owning has notable advantages.

Tax Savings

Owning allows for significant tax savings.   You can deduct mortgage interest and property taxes from your federal income tax and many states’ income tax if you itemize your deductions.

Equity
Real estate traditionally appreciates ( if you’ve paid a intelligent price for the home ).  You may build equity in your home over the life of your loan.   It felt good to receive a $35,000 equity appreciation check from a home I bought 3 years ago and just sold in Florida.

Stable monthly housing expenses
Your monthly mortgage expense CAN remain the same for the life of your mortgage, depending on the type of loan you choose.

I am ready to help you start taking advantage of the benefits of being a homeowner.  It’s a buyers market right now in Charleston, Mt Pleasant, Isle of Palms and Sullivan’s Island.   Real Estate prices are down as are mortgage interest rates.

On the Gooden + Faircloth website, click on MLS Search above to review the many great options you have in the market right now.   Better yet, click on Contact me and let me assist you with your search.

Owning your own home is within your reach.    We look forward to the opportunity to help you find that perfect home.

Rebecca Gooden

I met with Jeremy Mills and Lantz Cox of Good Faith Mortgage recently to explore financing options for my clients.  I got some good news, some bad news, and some hopeful news.

Even with very high credit scores, self-employed workers (this includes all workers that don’t receive W-2 wages) will find obtaining a mortgage a little more challenging than in the past, more challenging but not impossible.  Self-employed borrowers will need to provide the following information to lenders:

* Proof of at least two years in the same type of business showing income necessary to qualify for the mortgage amount.  Two years of tax returns.

* Sixty days of assets including IRA’s, 401k’s, Stocks, Bank accounts

* Assets.

Because of past abuses of this type of loan, the days of no-doc loans are gone.  This is to the detriment of self-employed workers, for whom the loans were intended originally.
All realtors are considered self-employed so these rules apply to us as well.  The hopeful news is that Fannie Mae and Freddie Mac are working on a plan to meet the needs of the self-employed workers. This plan will hopefully be in place within about two months, according to Jeremy and Lantz.

Here is the  great news for W-2 workers who are thinking of buying a home.  Qualified borrowers with a credit score of at least 580, can apply for FHA and VA financing.  For conventional loans with less than 20% down payment, the score would need to be 680.  The requirements for these borrowers are:

* 2006, 2007 W-2’s

* A 2 year history in the same line of work (unless the borrower is a recent college graduate with a job in their degree field)

* Assets

* 2 months of recent pay stubs

I left my meeting with Jeremy and Lantz hopeful about financing and mortgages.  Though their hands are tied in many respects by regulations, I was  assured that they, as well as other lenders I have spoken with recently, will  do whatever they can within those regulations to obtain financing for home buyers.

They will explore all options and investigate all possibilities for making home buyer dreams come true.

Rebecca Gooden

The Fear Of Foreclosure

Increasingly more of us are facing the painful possibility of foreclosure. The American Dream is turning into a nightmare.  Who’s at fault?  Homeowner?  Mortgage company?  Federal government?  Economy?   A combination of all?

Let’s look at one possible soluation:  a Loan Modification.

A loan modification might be necessary when the original loan has terms that make it impossible for the homeowner to continue making the current payment and there is a danger of foreclosure.

Loan modifications can stop foreclosures and reinstate the loan as it is being modified.

What’s in it for the lenders?

When a bank is forced to foreclose on a mortgage, it must then resume the responsibility of selling the home.  In a depressed market, the resulting sales price is generally less than the mortgage amount and it is difficult for the bank to recover the difference from the foreclosed upon mortgagee.  Modifying the mortgage is a much more attractive option because the lender won’t lose any money and will ultimately result in a win-win solution for everyone.

When the mortgage is restructured, the payments are lowered as the lender adds time to the mortgage.  The lower payments make it possible for the homeowner to stay in the home while the added time allows the bank to earn extra interest.

Requirements for a loan modification
The homeowner must want to keep his/her home and be willing to navigate the sometimes confusing process of loan modification.    The homeowner must have experienced some financial hardship. This can include loss of job, medical hardship or an adjustable rate mortgage that has increased the payment beyond the homeowner’s ability to pay.   The homeowner must have the income to be able to continue making the lower payments.

If you are facing foreclosure, don’t bury your head in the sand.  It won’t go away unless you are proactive and take the steps necessary to insure you are able to keep your home.  Your first step should be to contact the Loss  Mitigation Department of your lender.  Be honest about your situation – give them the facts. Don’t sugarcoat.  Now is not the time to put a positive spin on your finances.  They need to see that because of some hardship, you need a loan modification. But they must also see that you have the income to support a lower, restructured mortgage payment.

Despite the challenges of the process, it is worth going through if the result is keeping your home.

Rebecca Gooden