When Can You Buy Huntsville Real Estate After Foreclosure?
If you lost your Huntsville real estate because of foreclosure, you probably haven’t given up on your dream of owning a home. You may be scared to try for financing - afraid you’ll be turned down and embarrassed in the process.
There are few guidelines that lenders follow to determine when you’ll qualify for financing after foreclosure. Arming yourself with this information will help you overcome your fears and qualify again for a mortgage.
Foreclosure With Extenuating Circumstances
Generally, lenders will take into consideration any extenuating circumstances surrounding the foreclosureon your Huntsville real estate. Was there a death or illness that prevented you from earning money to pay your mortgage? Did you have a job transfer that came with a steep pay cut? Were you severely injured and temporarily disabled as a result?
You can add a memo to your credit report that explains any lapses in credit worthiness to potential lenders. This report can be up to two hundred words and will be shown to all who look at your credit report.
Many lenders will shorten the waiting period for documented extenuating circumstances. The customary waiting period after a foreclosure is at least seven years. But with documentation, the waiting period can be shortened to as little as three years.
Deed-in-Lieu Of Foreclosure and Short Sale
You may be wondering what the waiting period for financing is for deed-in-lieu of foreclosure or in the case of a short sale. Fortunately lenders aren’t quite as strict if you were able to avoid an actual foreclosure sale.
The waiting period for a deed-in-lieu of foreclosure is four to seven years. If there were special circumstances surrounding the deal, you may be able to qualify in as little as two years. The lender may require a certain down payment or credit score as a condition of approval.
Getting financing after a short sale is the easiest. Generally the lender will only require a two year waiting period before they’ll approve financing.
The good news about financing after foreclosure is that it is possible. Your dreams of owning [city] real estate don’t have to end because you’ve had a foreclosure in your past. You may just have to be a little more patient.
Whether you’re ready to buy your next home or simply have a question about Huntsville real estate, I’d love to help. Give me a call today at 256-508-0211 or email me at mike@movetohuntsville.com.
We shared with you Huntsville real estate sales statistics for 2008 in our last post, but another fun bit of trivia is the highest and lowest priced home to sell in 2008. If nothing else, Huntsville real estate has a wide range of prices. There is a $2,250,000 spread between the highest and lowest sales price.
4000 McVay Street, Huntsville Al
The lowest priced Huntsville home to sell was 4000 McVay Street, selling for $10,000 in September 2008.
This 720 square foot, 2 bedroom, 1 bath home was on the market for 66 days and originally listed for $12,500.
18 Ledgeview Drive, Huntsville AL
The highest priced home to sell in Huntsville in 2008 was 18 Ledgeview Drivewith 6 bedrooms, 8 total baths and 9,175 square feet. The home originally listed for $2,600,000 and sold for $2,350,000. It was on the market for 230 days and sold in March 2008.
Incredible amenities include: a 4900 bottle Wine Cellar, a Home-Theatre room w/stadium seating. Elevator! Custom Kitchen w/copper vent hood, Sub-Zero & Thermador appliances. Master bath has GORGEOUS claw foot tub. 24×16 Master Closet w/extensive built-ins! Entertain outdoors by the award winning pool & spa, or on screened porch w/outdoor fireplace.
Thinking of buying a Huntsville home? We can help, big or small. Simply visit HuntsvilleHomesOnline.com or give us a call for more personal service, 256-508-0211.
After holding fairly stable for a year, pending home sales declined in the face of job losses and an eroding economy, according to the National Association of Realtors®.
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in November, fell 4.0 percent to 82.3 from a downwardly revised reading of 85.7 in October, and is 5.3 percent below November 2007 when it was 86.9. The current index is the lowest since the series began in 2001.
Lawrence Yun, NAR chief economist, said a weakening was inevitable. “Mounting job losses and very weak consumer confidence deterred home buyers from signing contracts in November,” he said. “December’s housing market activity could be comparably lower due to ongoing problems in the economy, so a real estate-focused stimulus plan is urgently needed.”
Let’s take a look at the sales statistics for 2008 to see how the Huntsville AL real estate market looks:
Huntsville/Madison County Sales Statistics
Huntsville and Madison County saw a 2% increase in average sales price over 2007. There was a 21% decline in home sales in 2008, when compared against 2007. The average list price has seen an increase of 2% over last year. Likewise, the sales price to list price ratio saw a slight decrease. The average price per square foot saw a 2% increase. Homes average days on the market were up by 13 days from 2007.
Date
Sold
Listings
Average
List Price
Average
Sale Price
Percent
SP/LP
Average
DOM
Average
Price
SqFt
2008
5,018
$204,453
$200,025
97.83%
92
$90
2007
6,343
$200,127
$197,041
98.46%
79
$88
For the latest Huntsville AL real estate market conditions in your area, please call me at 256-508-0211 or visit MoveToHuntsville.com.
Statistics are based on information for the North Alabama Association of Realtors and are deemed reliable but not guaranteed.
Relax rain or shine in the screened porch of this well-maintained 4-bedroom, 3 bath, 2,820 square foot ranch in Deford Mill. Entertain in your formal dining room with wainscoting, crown molding and triple windows for an abundance of light. You will enjoy the high ceilings and open space of the great room with gas fireplace for chilly nights. The kids will love the all new eat-in kitchen where they can watch mom prepare their favorite foods, before running off to play in the large fenced backyard. After a long day, retreat to your master suite with, trey ceilings and enjoy being pampered in your own whirlpool tub. The master suite also features a private entry to the covered porch. Let the sprinkler system water your lawn while you spend time with the family at the community pool or on the tennis courts. The all brick exterior provides maintenance free living. This home is perfect for a growing family!
Learn more about 2540 Audubon Lane and other Huntsville real estate by visiting MoveToHuntsville.com.
Amidst the gloom and doom, there’s some good news to report about metro Huntsville. Among large metro areas, Huntsville ranked #5 in the Best Performing Cities in 2008 survey conducted by the Milken Institute/Greenstreet Real Estate Partners. The Best Performing Cities ranking depicts those U.S. metropolitan areas that are recording the top economic performance.
Cities were ranked according to how well they are creating and sustaining jobs and economic growth. The ranking depicts those U.S. metropolitan areas that are recording the top economic performance for wage and salary growth.
Nationally, Huntsville ranked #5 in wage and salary growth for 2008, moving up from the #16 ranking in 2007. In other rankings, Huntsville is # 26 for 5-year job growth, and #15 for 1-year job growth. In Alabama, Montgomery ranked second behind Huntsville, which ranked as the #5 metro area overall. No other large Alabama metropolitan area grew in its ranking.
Job growth is important in maintaining Huntsville real estate values. Learn more about Huntsville real estate by visiting MoveToHuntsville.com.
First Time Home Buyers Loan Options When Buying Huntsville Real Estate
There is so much negative press about the lending industry these days, many Huntsville first time home buyers are scared to death to even consider buying a home. They hear stories that someone’s mortgage payment went from $1,000 to $1,800 almost overnight. They are afraid of the fine print and don’t know who they can trust.
A study conducted by the University of North Carolina School of Social Work determined that loans with low monthly payments result in borrowers who stay current. They also participate in their communities and vote.
The problem is subprime loans, says Roberto G. Ouercia, director of the Center for Community Self-Help, a nonprofit that partners with Fannie Mae and the Ford Foundation to lend mortgage money to low-income borrowers. The study found that borrowers with subprime loans are four times more likely to fall behind.
Subprime loans are loans to borrowers with questionable credit, usually 680 credit score or lower, and at higher interest rates.
Huntsville first time home buyers have other, less scary, mortgage options:
The Alabama First Step Mortgage Program
This tax exempt Mortgage Revenue Bond program offers lower than market mortgage interest rates and low fees for fixed interest rate 30 year VA, FHA or Rural Development mortgages. This program is designed for first time home buyers and low income home buyers. AHFA will provide a percentage of the home purchase price in down payment and closing cost assistance depending on the needs of the home buyer. This is financed over a 20 year term. To be eligible for this money you must use Rural Development or an FHA mortgage loan program.
The Alabama Step Up Program
The Step Up program is available throughout the state of Alabama. It is available year round and is available on a first come first serve basis. AHFA will provide no money down financing to qualified buyers that are using FHA or Rural Development loans. In conjunction with the down payment money, AHFA is offering a 30 year fixed rate mortgage with an interest rate that is slightly higher than the market rate on mortgage loans.
If you are a Huntsville first time home buyer and need more information on sound, reliable financing options, visit MoveToHuntsville.com. You can also give me a call for more personal assistance.
Let your dreams come true in this beautiful home on gorgeous lot in Huntsville. A must see remodeled ranch style home offers 4 bedrooms, 2 bathrooms plus a recreation room. The elegant living and dining room with crown molding, fresh paint and an abundance of light are ready for your entertaining. You will enjoy serving your family in the all new eat-in kitchen, with breakfast bar, updated countertops, cabinetry, Maytag Gemini double oven and a planning desk. The inviting family room with wood burning fireplace is sure to warm your guests on cold winter nights. The master suite includes a newly remodeled bath with dual vanities, tile shower and 2 closets is the perfect retreat. The recreation room opens out to a spacious deck with arbor. The gazebo is sure to be a hit at your next lawn party. 2-car garage, plus workshop! 1 car detached garage/shop with electricity is sure to please any handyman. Dreams do come true!
Learn more about 10010 Greenview Drive and other Huntsville real estate by visiting MoveToHuntsville.com.
How Huntsville Home Buyers Save Their Down Payments
This is a great time to think about buying a Huntsville home. Huntsville home prices have dropped and interest rates are at all time lows. The biggest hurdle for many Huntsville home buyers is saving money for a down payment. Here are 25 things to do on a regular basis to save money:
Make it automatic. Before you see your paycheck, have a percentage of it automatically deposited into your 401(k) and savings.
Keep minimum funds in checking account. Transfer extra funds into your savings account where it will earn more interest than in our checking account.
Don’t pay banking fees! Use your bank’s free bill pay, automatic deposits, free checks, and free reimbursements for all ATM fees.
Use rewards credit cards. Use a credit card offering cash back on every purchase and pay the card off each month to eliminate interest fees.
Actively search out deals. It never hurts to try and find a better deal, or request a better deal from your service providers.
Use a programmable thermostat. Programmable thermostats save you an estimated 10-20% on your heating and cooling bills.
Use ceiling fans, floor fans, and space heaters. Turn your thermostat down, close the doors to unused rooms and use a space heater for heat. Use ceiling fans and floor fans to assist with heating and cooling - depending on the season of course!
Install CFLs to save energy. Compact fluorescent lights use about a quarter of the electricity of normal incandescent bulbs. They also need replaced much less often.
Drive smoothly. Accelerate smoothly and at a reasonable rate, and coast to a stop as often as possible and use cruise control on the highway.
Plan and research major purchases. Take the time to research the best deals when planning a vacation.
Buy quality products. Quality items may cost more up front, but they last longer and generally provide better results than cheaper, inferior products. Examples of items you should buy higher quality - furniture, clothes and shoes, vehicles, and other items that will see a lot of use.
Buy generic where applicable. You can save a lot of money on generic items for which the brand name product is essentially the same as the store brand. Food and medicines come to mind as items where generic products are good deals.
Use coupons and rebates. Use coupons for oil changes, groceries, books, on-line purchases, and just about anything else we can find.
Use store rewards cards. Many grocery stores have their own ‘reward cards’ saving you money each time your shop. If you are a senior, shop on designated senior citizen discount days.
Cook at home. Limit restaurant dining to once a month.
Eat leftovers. You can save a minimum of $20 a week by bringing your lunch to work. It is also healthier. On the rare occasion you go out to lunch with coworkers, you’ll enjoy it more.
Use the library. Borrow books and movies from the library. New movie releases aren’t always available, but there are usually plenty of classics from the 40s and 50s.
Use parks. They are great for hiking and outdoor recreation.
Take care of things. Treat the tings you own with respect and take good care of them. This includes doing things such as cleaning the house, washing your cars, and polishing shoes. Things last much longer when you take good care of them.
Buy insurance. Health insurance, home owner’s insurance, auto insurance, and other types of insurance are designed to save you money! Sure, you may end up paying premiums for years and never file a claim, but in the event you need to file a claim, your premium will likely be small compared to what you would have had to pay. You’ll be very happy if you ever need it!
Bundle cable and internet. You can save a lot of money by bundling these together rather than purchasing the separately. You can save more if you bundle your phone as well.
Use cell phones - skip the landline. Depending on your plan, it can be a real cost saving.
Cancel subscriptions. Almost everything you want can be found on-line for free.
Home improvement. Try making your own repairs before calling a professional.
Avoid debt. If you don’t have the money for it, don’t buy it.
Saving money and watching your savings account grow is a rewarding experience…especially if it can help you purchase a Huntsville home of your own.
Learn more about buying a home at HuntsvilleHomesOnline.com or give me a call for more personal service.
Huntsville Home Buyers Rethink Buying Foreclosures
Most Huntsville home buyers consider buying a foreclosed property to be a good deal. But buying a foreclosure is not for the faint of heart. The dream of homeownership can often become a nightmare and more and more Huntsville home buyers are becoming leary of foreclosed properties.
Prices on foreclosed homes can be as low as 25% below market value and who doesn’t want to save that kind of money? However, be sure to look carefully at the condition of the property and calculate the cost of repairs into your budget.
Foreclosure homes are sold “as is” which means that the 25 percent you just saved on the purchase price can easily be eaten up by unforeseen expenses such as repairs not immediately apparent in an exterior inspection. Often when you buy a home in foreclosure, you may not be able to look inside let alone have an inspector detect structural problems that you’ll need to fix before moving in.
Something else to think about – people who lost their home in foreclosure very likely couldn’t afford to maintain their property.
So be prepared to pay for any problems such as electrical or plumbing repairs, leaky roofs, or even vandalism by angry homeowners who break things or punch holes in walls and doors, an unacceptable but not that uncommon way that some homeowners deal with the angst of losing their home to foreclosure.
Last spring, 54% of Dallas home buyers said they would consider buying a foreclosed property, according to a study conducted by Trulia.comand RealtyTrac. In the fall, this number dropped to 47% with 80 percent of those surveyed citing hidden repair costs, a tricky buying process, and the possibility that the neighborhood will lose more value and drag the property down with it.
To compensate for these risks, 75 percent say they expect at least a 25 percent discount and 30 percent say they would only buy if there is a 50 percent discount compared with a comparable home that isn’t in foreclosure.
Other findings:
* 56 percent of single/never married adults were at least somewhat likely to consider purchasing a foreclosed home, down from 60 percent in April.
* 43 percent of married adults were at least somewhat likely to consider purchasing a foreclosed home, down from 50 percent in April.
* 42 percent of divorced/separated/widowed adults were at least some
Thinking about buying a foreclosed property? Visit MoveToHuntsville.com for more info. Or give me a call a call, I am glad to help you through the process.
