Window of Opportunity

No doubt this unpredictable market is different for everyone. It makes sense to be cautious when everything in your life is uncertain; it makes sense to be a little bolder in risking all you’ve got if there’s nothing to lose. And there’s  more in between! This window of opportunity is like having the planets align once in a lifetime. What Window of Opportunity? Let’s see…when was the last time Low Interest Rate aligned with Favorable Housing MarketHelpful Program Assistance (FHA, etc), and a few other things to consider.

1. It’s a market for First-time Home Buyers. With FHA’s qualifying standard–3 1/2 % DOWN PAYMENT and 620 FICO score (or lower with varying circumstances), wouldn’t you equate this with subprime loan? From my email, I just got the info from Gary, BFC Home Mortgage Consultant based in our Anaheim office, that “FHA  is lowering the MI Up Front Premium and increasing the annual (monthly) mortgage insurance premium…effective with case numbers assigned on or after October 4, 2010”–in short, if you’re renting $750/mo and you can OWN a  condo…wouldn’t it make sense  to BUY if there’s some certainty in your life? Granting you’ll pay HOA…but you’ll have the tax break, etc. etc. For more of the home-buying process, visit Gary at www.homeloans.com/loans/gary-deloach  …he surely could explain it better than me!

2. It’s a market for Equity Sellers, too. Do you have equity in your home? Maybe your mortgage payment is so low it would make sense to rent it out and be in a place you really want to be–your dream home just got more affordable. Wait a minute…ask yourself–am I ready to become a landlord/landlady? The possibilities are endless…and they all come with RISKS. Don’t Investors take risks? At this market? ALSO: with the lower market value, the taxes in your dream home will also be lower.

3. The Distressed Market–Short Sale, Deed-in-Lieu, Foreclosure, Bankruptcy! Things happen in our life, and we have to deal with them as best we could. There are more options now than in 2008 and 2009 when there were more Foreclosures than Short Sales. I don’t need to look at the statistics to see that there are more Short Sales than Foreclosures in 2010. It may seem to be the path of least resistance to just walk away without really thinking of the tax consequences, or the Second Mortgages…only to find out that they don’t really disappear. Purchase money may be easy to forgive, but 2nd or 3rd mortgages may have been sold to collection agencies that could follow anyone relentlessly. I will not go into details, but Short Sale has a lot more advantages, especially with the HAFA-Help Is On The Way. Should I then say…it’s a market for Short Sales? Wouldn’t Short Sale be a better option when you can possibly buy another house in 2 years? Would that be too far from affordability?

Generally, today’s lower rates translate into comparatively lower purchase costs. Ultimately…discuss tax and legal aspects with your accountant or lawyer because your situation is unique to you. Arm yourself with information as you don’t want to miss that window of opportunity…if and when it opens up to you.

 

Originally posted @ https://xzyllar.wordpress.com

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