As unfortunate as it can be when homeowners fall behind on mortgage payments and must face the possibility of losing their homes, short sales and foreclosures provide them options for moving on
GOOD NEWS in DFW - June 2020
Dated: June 26 2020
Smart homes and smart home technology are becoming exceptionally popular, especially during a time where working, studying, and doing all things life from home is more than a simple choice. Unfortunately, some homeowners run into problems with smart home devices that have to be on the same home network to interact. Traditional WiFi extenders sometimes create separate but overlapping networks, meaning that devices outside of the range of your wireless router might not work correctly. One option to get around this issue is to set up a mesh network within your home. Unlike traditional WiFi extenders, mesh network extenders create a single wireless network that all your devices can attach to. With a standard WiFi network, your router or other access point typically serves as a hub for network connectivity and any extenders or other network components connect directly to it. In a mesh network however, each device connects not only to that central hub but also to each other. This creates a “mesh” of paths throughout the network, allowing signals to route through the network in multiple ways to ensure even coverage. This helps to prevent dead spots or weak signals, eliminating the need for overlapping wireless networks. Mesh networks can be very useful if some parts of your home have weaker signals than others or if you plan on adding devices outside of your home and aren’t sure how well your network will be able to handle it.
Most buyers think a short sale is a great investment opportunity coupled with a quick sale due to necessity. Not quite, the term can be deceiving. Short sales are homes being sold at a loss, short of what is owed on them; however the process can be quite lengthy, as buyers are not only dealing with the homeowner's approval of the offer, but also with the bank approvals. So patience is key, something you may not have if you are simply buying it to move in, so your schedule is at stake.
If opting to buy a short sale, make sure you hire an experienced real estate agent. There are usually a variety of clauses that must be included in a short sale contract that are not typical in your standard contract, as well as knowledge of what will and won’t be accepted in said contract to consider. Your interests have to be protected, which can really bloat a standard purchase agreement with a lot of extra verbiage.
Also keep this in mind: selling a home in a short sale usually means the seller may have not had enough extra cash to fix up the home. Most of them are somewhat neglected and the prospect of not making any money on the sale makes any improvements the furthest thing form a seller's mind. So, a really good home inspector is paramount to help you avoid the potential money pit. Still, be sure that you have enough cash on hand to allow you to make the necessary repairs to bring this home back to its glory, and worth your time and financial investment.
When a home qualifies to be a short sale, the bank is using proceeds from a claim against the mortgage insurance (MI) to make up the difference between what the sellers owe and what a buyer is giving. MI can help prevent something known as a “bleeding foreclosure.” This is a foreclosure (or short sale) that has sold, but has a balance remaining that cannot be forgiven. Not all homes sold short will “bleed,” but it’s a potential in many states, especially if you’re not carrying MI on your mortgage. So, rather than pay extra every month for MI, you’ll be paying monthly for the outstanding balance on a house you no longer own. Utilizing an experienced real estate agent cannot be stressed enough in these cases. Short sales are not always deals, because banks know what their property is worth — they’re not going to let you steal that house for a song. The banks involved are also unlikely to make repairs or give you any sort of concessions. Do your homework, and get ready for a slow burn transaction that will hopefully translate into a stellar investment for you.
According to the latest Gallup survey, “Real estate remains the most favored investment to Americans, as has been the case since 2013, when the housing market was on the rebound. More than a third of Americans have named real estate as the top investment since 2016.” This year’s results indicated 35% of Americans chose real estate, followed by stocks at 21%.
PURCHASE READINESS SOARING
A recent survey conducted by Lending Tree indicted that 53% of all homebuyers are more likely to purchase a home in the next year. While there are many reasons for this increase, the #1 reason by far (67%) is to take advantage of the historically low mortgage rates currently offered. Other reason included reduced spending and a re-evaluation of space you can call your own. Coupled with solid indicators of a rebounding economy, home buyer readiness is primed.
According to Sam Khater, Chief Economist at Freddie Mac: "As the economy is slowly rebounding, all signs continue to point to a solid recovery in home sales activity heading into the summer as prospective buyers jump back into the market. Low mortgage rates are a key factor in this recovery."
Buyers can take advantage of additional savings and low mortgage rates. And if you’re thinking of selling, know that your home may be in high demand as buyer interest grows and the number of homes for sale continues to dwindle. This may be your moment to list your house and make a move into a new space as well.
When you need a guide on your real estate journey, Sherien Joyner is the right choice for you. With over sixteen years of experience as an executive in the advertising and marketing industry, Sherien ....
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