Listing Courtesy of KELLER WILLIAMS REALTY
Whenever an unplanned and unwelcome financial situation develops, a Lewes mortgage-holder can find himself or herself in the onerous position of being unable to keep up with the monthly home loan payments. If the unhappy situation continues long enough, the likely result is a foreclosure or short sale. In addition to losing the property, the impact on personal credit then takes years to undo. That means it takes that much longer for a consumer to acquire a new home and start to build equity again.
Here as elsewhere, there were a raft of such Lewes mortgage defaults following the global financial meltdown. Even those who had no trouble servicing their area mortgages could have suffered when they found that falling property values prevented them from refinancing—even when the purpose was to improve their property. Although those events happened years ago, it’s only now that their aftereffects are finally working their way out of the system.
A recent article in NMP—the national Mortgage Professional’s magazine—delved into the changing status of those who lost homes in the turndown. The details they researched are interesting in themselves—details that are bound to have an impact on Lewes residential sales.
First off is the fact that enough time has elapsed for those who weathered a short sale or foreclosure to begin to return to eligibility. They’re called “Boomerang Buyers”—and nationwide, there are estimated to be 7,300,000 of them! In 2016 alone, more than a million will become eligible to return to the home-buying market. According to NMP, “they’re returning to the market in droves.” The hardest-hit states were Nevada, Florida and Illinois—but there are plenty of Boomerang Buyers scattered across the rest of the nation.
The improving mortgage eligibility landscape extends beyond those who suffered the actual loss of their homes. To the more than 7 million “distressed” homeowners whose properties are still underwater (those who owe more than market value), the government’s HARP 2 program is one possible remedy. Its guidelines encourage lenders to relax the loan-to-value caps that had prevented refinancing for many of those homeowners. Reports are that it has already resulted in an increase in such refinances.
Other program combinations are helping loan originators and Realtors® get more bank-owned homes back into homeowners’ hands. These are properties that make up the ‘shadow inventory’ of unsold homes, many of which have fallen into disrepair. Because of that, they’ve been difficult to finance—and therefore difficult to sell. Through FHA 203K and Fannie Mae’s Homestyle® renovation mortgages, more ambitious prospective owners—including investors—are discovering they now have mortgage options that can put those fixer-uppers within reach.
For those who have previously found it problematic to secure a Lewes mortgage with acceptable terms, it may be worth looking into today’s improved financing alternatives. Especially with mortgage interest rates at the levels we’re seeing this fall, what you find may be a pleasant surprise—one that puts you into the house of your dreams. Call me to discuss first steps! Call/Text me Russell Stucki at (302) 228-7871, email me at email@example.com, visit more listings at www.beachrealestatemarket.com.
Along with all of last week’s New Year’s Day festivities came what you could call the New Year’s Frame of Mind: the familiar, this-time-of-year special consciousness of the passage of time. For most Lewes residents, all the other seasons come and go with everyone too busy tending to everyday affairs to pay much attention to the big picture: the progress (or lack of it) toward the major goals most everybody hopes to achieve.
It’s that New Year’s Frame of Mind that’s behind the impulse to make New Year’s resolutions. After all, there’s no such thing as ‘Fourth of July resolutions,’ or ‘Labor Day resolutions,’ even though a quick check of the calendar confirms they come once every year, too. Nope; it is the moment when the crystal globe slides down to the Times Square throng and old Father Time greets Baby 2016 that’s most likely to trigger thoughts of how preposterous it is that another whole yearhas gone by.
Whether or not that feels terrific is partly due to how well we’ve advanced in our individual Grand Scheme of Things…be it a self-improvement incentive (that’s why they run all those ‘learn a foreign language’ commercials in December) or long-term career growth.
For most Lewes residents, progress toward financial security is one of the larger issues that the New Year’s Frame of Mind can trigger. Right on cue, many of last week’s end-of-year broadcasts included a sobering study about the average American’s savings picture…actually, ‘sobering’ is too mild a word. As one credit guru put it, the statistics were ‘dizzying.’
The survey was credited to an outfit called GOBankingRates. They had released it months ago, but it drew considerably more attention as the calendar neared January 1 (getting the New Year’s Frame of Mind treatment). Their pronouncement wasn’t so much ‘dizzying’ as it was frightening: the lead finding was that 62% of Americans have less than $1,000 in savings!
Reassuring information was readily available, though, for anyone who did more than a quick scan of the survey. It turns out that they had asked about savings accounts only—so the headline-grabbing number left out retirement accounts and the like. As it relates to Lewes real estate investors (if you own a Lewes home, you are certainly an Lewes real estate investor), they also hadn’t included real estate equity in the ‘savings’ total. That certainly makes their scare headline less than dizzying. As the first commenter on their own website noted, ‘why keep money in a 1% savings account?’
But GOBankingRates wasn’t exclusively a source for misleadingly bad news. As compensation, they also supplied surveys of the 10 Best Tax Havens in the World (Luxembourg is #1) and 2016’s Top Resolution (it is “enjoying life to the fullest”).
Here’s hoping that our town’s 2016 proves to be a remarkably healthy, happy, and prosperous one for you and your family. And if ‘enjoying life to the fullest’ this year involves buying or selling a Lewes home, I hope you’ll give me a call! Call/Text me Russell Stucki at (302) 228-7871, email me at firstname.lastname@example.org, visit more listings at www.beachrealestatemarket.com.