The Story on SHORT SALES...

By Amy Hoak

RISMEDIA, March 26, 2009-(MCT)-Those searching for the best housing bargains on the market might consider buying a short-sale property, but there’s an important qualification for buyers interested in going this route: They need plenty of patience.

In a short sale, a homeowner’s lender agrees to accept less than is owed on the mortgage for the property. It’s a useful alternative for borrowers underwater on their mortgage and on their way to foreclosure. As home prices continue to decline, short sales have become a viable option for those who need to sell.

“Over the past three to six months, the servicers have really become aware that short sales are the best way to reduce their losses when a modification is not an option,” said Travis Hamel Olsen, president of National Short Sale Center, a company that facilitates short sales nationwide on behalf of homeowners and real estate agents. The short-sale option also is less damaging to a seller’s credit than a foreclosure, he said.
A short sale can be attractive to a home buyer since the lender often will accept bids on the property that can be 10% or more below the market value, determined by the prices of comparable, nearby properties, Olsen said.
Although the mortgage balance is probably greater than the price a seller could expect in a traditional sale, the lender may be willing to take less than is owed in a short sale if this will help the lender avoid the further expenses of foreclosing and taking over the property. The savings, however, often come at the expense of a home buyer’s time.
“Short sales should be called long sales,” “In some cases, it could take months for a buyer to hear back from a lender.”
Are the savings worth it to you? Consider these five points before shopping for a short sale:
1. You’ll wait in the dark. Perhaps just as frustrating as the wait time is the fact that you likely won’t be privy to details as the deal is progressing. That could mean going months without an update.
2. Banks will make you a deal, but within reason. There are deals to be found in short sales, but don’t expect outright steals. A buyer needs to make a fair offer, based on comparable homes that have been sold recently, Jenson said. The offer should be aggressive, but not ridiculous. .
3. Sales are “as is.” In a short sale, it isn’t likely that you will get allowances from the seller for repairs that are needed, as you might in a traditional sale, Jenson said. Do a home inspection and know what you’re getting into, but remember that your bid is for the property “as is.
4. Have a back-up plan. Even if you decide to bid on a short-sale property, it might be best to keep looking anyway.
“There is no guarantee with short sales, and if the buyer is smart, they will put an offer on a short sale they like and continue to look at properties that interest them,” It isn’t uncommon for people to find a home they like better and avoid the short-sale deal. When a offer is accepted and earnest money is put down, remember that you risk losing those funds if you decide to walk away and buy another home. It may take months before the deal closes, even after the offer is accepted.
5. It’s not only about price. “One thing to not lose sight of is that you’re buying a house to live in. Buy a house you like,” It is recommended that prospective buyers remain open to properties of all types - short sales, bank owned and traditional sales - and compare prices and features.
A short sale is only a bargain if it’s a home that you truly want to live in - not something you’re drawn to only because of its low price tag.
© 2009, MarketWatch.com Inc.Distributed by McClatchy-Tribune Information Services.

We're in the news again...Forbes this time.!!!

Texas' Capital City rose significantly from 47th on last year's list. Austin was behind cities such as No. 1 Raleigh, N.C. and No. 4 Fayetteville, Ark. The list was ranked according to factors such as cost of doing business and projected employment growth.
Forbes.com cited Austin's projected annual job growth rate of 2.3 percent--the fifth fastest in the country, and its relatively low subprime mortgage exposure.
For its reporting on Austin, Forbes.com spoke with the Charles Schwab Corp., which expanded its Austin presence in 2007 when it purchased the 401(k) Co. "The city of Austin is extremely business-friendly. They have bent over backwards to accommodate us," Glenn Cooper, head of real estate at Schwab, told the news site.
The top 10 cities on the list were as follows:
Raleigh, N.C.
Fort Collins, Colo.
Durham, N.C.
Fayetteville, Ark.
Lincoln, Neb.
Asheville, N.C.
Des Moines, Iowa
Austin, Texas
Boise, Idaho
Colorado Springs, Colo.
If you're interested in buying, selling, investing, or leasing in Austin or surrounding areas, call or email me today. Celebrating 10 years of selling Central Texas!

Austin Is NUMBER 2...in Growth...

Austin 2nd fastest growing city in the nation
Austin Business Journal
Austin was the nation’s second-fastest-growing metropolitan area between 2007 and 2008, according to new data from the U.S. Census Bureau.
The population in the Austin-Round Rock area grew 3.8 percent to 1.65 million between July 2007 and July 2008. Among major U.S. metros, that growth rate was second only to Raleigh-Cary, N.C., which experienced a 4.3 percent population uptick during the 12-month period.
Large metro areas — those with 2008 populations of 1 million or more — were home to nine of the 10 fastest-growing counties. Texas had the largest number of counties on the 100 fastest-growing counties list with a total of 19. The Lone Star State was also home to 10 counties among the 25 with the highest numerical gains.
Four metro areas--including two in Texas--increased their populations by more than 100,000 people between 2007 to 2008: Dallas-Fort Worth (147,000), Houston (130,000), Phoenix (116,000) and Atlanta (115,000).

Look at all the options for FIRST TIME HOMEBUYERS TO USE THE $8000 Credit...WOW!

IR-2009-27, March 18, 2009
WASHINGTON — As part of the Treasury Department’s consumer outreach effort and with the April 15 individual tax filing deadline approaching, the Internal Revenue Service today began a concerted effort to educate taxpayers about additional options at their disposal to claim the new $8,000 first-time homebuyer credit for 2009 home purchases. For people who recently purchased a home or are considering buying in the next few months, there are several different ways that they can get this tax credit even if they’ve already filed their tax return.
The Treasury Department encourages taxpayers to explore these options to maximize their credit and get their money back as fast as possible.
“The new credit can get money in the pockets of first-time homebuyers quickly,” said IRS Commissioner Doug Shulman. “For people who recently purchased a home or are considering buying in the next few months, there are several different ways that they can get this tax credit even if they’ve already filed their tax return.”
First-time homebuyers represent a significant portion of existing single-family home sales. The expansion in the first-time homebuyer credit will make it easier for first-time homebuyers to enter the housing market this year.
Under the American Recovery and Reinvestment Act of 2009, qualifying taxpayers who purchase a home before Dec. 1 receive up to $8,000, or $4,000 for married individuals filing separately. People can claim the credit either on their 2008 tax returns due April 15 or on their 2009 tax returns next year.
The filing options to consider are:
File an extension. Taxpayers who haven’t yet filed their 2008 returns but are buying a home soon can request a six-month extension to October 15. This step would be faster than waiting until next year to claim it on the 2009 tax return. Even with an extension, taxpayers could still file electronically, receiving their refund in as few as 10 days with direct deposit.
File now, amend later. Taxpayers due a sizable refund for their 2008 tax return but who also are considering buying a house in the next few months can file their return now and claim the credit later. Taxpayers would file their 2008 tax forms as usual, then follow up with an amended return later this year to claim the homebuyer credit.
Amend the 2008 tax return. Taxpayers buying a home in the near future who have already filed their 2008 tax return can consider filing an amended tax return. The amended tax return will allow them to claim the homebuyer credit on the 2008 return without waiting until next year to claim it on the 2009 return.
Claim the credit in 2009 rather than 2008. For some taxpayers, it may make more financial sense to wait and claim the homebuyer credit next year when they file the 2009 tax return rather than claiming it now on the 2008 tax return. This could benefit taxpayers who might qualify for a higher credit on the 2009 tax return. This could include people who have less income in 2009 than 2008 because of factors such as a job loss or drop in investment income.
The IRS reminds taxpayers the amount of the credit begins to phase out for taxpayers whose modified adjusted gross income is more than $75,000, or $150,000 for joint filers. Taxpayers can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately.
IRS.gov provides more information, including guidance for people who bought their first homes in 2008. To learn more about the overall implementation of the Recovery Act, visit www.Recovery.gov.

Check your Credit Report...

Over 70% of consumers identify errors on their credit report. Twenty-five percent of those are serious enough to deny consumers and business owners access to credit, preferred interest rates or even a job. With over 54 billion credit updates occurring each year, it’s very likely you-or your clients-may have errors that are negatively impacting the ability to get credit and/or causing you to pay unnecessary interest expenses.
Identifying a credit report error is only the first step. Most consumers don’t know they have an error on their report because they rarely, if ever, review it until they need to get a loan. By the time this occurs, a consumer typically has less than 45 days before they need their loan funded, and their ability to get a single, valid error corrected within this timeframe is marginal at best.
The need to proactively understand, evaluate and optimize your credit profile has never been greater. So what should a consumer do? Become educated and informed about how credit works. Your clients should continually review and evaluate their credit profile. When a questionable activity is identified, he/she should make sure they understand it and correct any valid errors. In most cases, consumers begin by filing a dispute with the applicable credit agency who is reporting the information. RE

And they say Texas is hurting...

http://www.youtube.com/watch?v=FC16-4fh-Qc