Real Estate Information, Corvallis Oregon Real Estate, Sue Long's Blog

Rising Interest Rates Coming Soon to our Neighborhoods?

With the potential for inflation looming on the horizon, banks will react to inflation by charging more in interest so that it offsets the cheap dollars they will get to pay off the mortgages.  It is time to buy if you are even remotely thinking about it.

The goal in inflationary times is to have hard assets, not cash sitting around as it will become less and less valuable.

Call me to look at some good investments.

In the past month, we have seen a sudden increase in the purchase of farm properties in the Willamette Valley.  There may be several  reasons:

• Fear of interest rates rising in the future
• Following the trend toward sustainability
• Desire for locally produced products
• Place to invest large amounts of money to diversify from the stock market

If you are thinking about selling your farm property, give me a call.  As an owner of a grass seed and alpaca farm, I have some knowledge of the values and potential.

 It seems like each time we turn around, more changes face borrowers looking for home loans.  The latest difference to our home loan process is part of the Mortgage Disclosure Improvement Act (MDIA) of 2008.  It could delay closing a few days if significant changes are made on the amount of the loan APR (effective interest rate after considering all the costs associated with the loan)at the last minute.  There is a new 3 day waiting period from the time the Truth In lending Good Faith Estimate is given to the borrower when changed significantly until a loan can be closed.  If both parties agree to change the price due to repairs, possession, or if the loan packet is no longer available at the last minute due to underwriters tightening loan requirements, buyers could be subject to the waiting period.  Buyers beware!

Here’s an interesting tidbit that you should know: With  homes that have had their main lines inspected visually with a camera snake, there have been many issues. Collapsed lines and major obstructions are a few.  Whether purchasing or  occasionally experiencing backed up lines, you would do well to have your lines visually inspected.  It costs approximately $125 but can save you money down the road by knowing the real issue lurking beneath the ground.

For a great money saving coupon from one of our Business Partners, American Rooter, e-mail me thesuelongteam@kw.com. 20% Savings on Visual Line Inspection! 

Keller Williams Realty Brokerages Dominate Annual Industry Surveys
3^rd largest company in U.S. the only major franchise to show growth

AUSTIN, TEXAS (May 19, 2009) —According to two of the industry’s most comprehensive annual surveys of the largest residential real estate brokerages, Keller Williams Realty brokerages continue to defy the pervasive downturn in the industry by growing and expanding. This year, Keller Williams Realty had more brokerages on both lists than any other real estate brand.

In the REAL Trends 500 report, Keller Williams Realty offices were more than a quarter of the entire list. Keller Williams was the only company to boast growth in both number of agents added to its ranks and in total transactions closed.

Within RISMedia’s Power Broker Report, Keller Williams Realty again accounted for 35 percent of all the brokerages listed. The report also ranked Keller Williams Realty #1 in number of agents and total closed transactions.

They have a bill in legislature now to give buyers the opportunity to use the $8,000 tax credit as a down payment.  This will allow many more buyers to qualify for a home bacause the main stumbling block for first time home buyers is gathering together the down payment.  If this is successful, it will mean that many more people will be able to buy.  Look for this idea to possibly travel south to Oregon??? It may become a model for other states soon!

Wonder how we are doing in our area compared to last year?  Here are the answers in a nutshell:

Our average days on market have gone up by about 12% from last year so it’s now more than 5 months

The average price in Benton County has gone down by about 2%.  This is less than most other areas in our MLS and reflects the fact that we are selling more lower priced homes rather than prices being down by that much.  Prices are down by more in the higher price ranges ($350,000 and up) and less in lower price ranges (up to $250,000).

New construction sales are at 44% of last year.

Total sales in our MLS are down by about 29%. 

People are now financing more using government backed loans such as FHA and VA  as well as more owner carried contracts.

CONSUMER ALERT

FORECLOSURE RESCUE SCAMS 

If someone who is not your mortgage lender promises to save your home and asks for you to pay money up front, WATCH OUT.  Many fraudulent foreclosure consultants are springing up who target homeowners who are behind on their mortgage payments.

TO AVOID BECOMING A VICTIM CALL THE PLATINUM GROUP FOR A FREE CONSULTATION

1. DON'T transfer title or sell your house to the foreclosure rescuer.  Fraudulent foreclosure consultants often promise that if the homeowners transfer title, they may stay in their home as renters and buy it back later. The foreclosure consultants claim that transfer is necessary so that someone with a better credit rating can obtain a new loan to prevent foreclosure.  BEWARE! This is a common scheme "rescuers" use to evict homeowners and steal all or most of their home's equity. 
2. DON'T pay money to people who promise to work with your lender to modify your loan. It is unlawful for foreclosure consultants to collect money before (1) they give you a written contract describing the services they promise to provide and (2) they actually perform all the services described in the contract, such as negotiating new monthly payments or a new mortgage loan.
3. DON'T pay your mortgage payments to someone other than your lender, even if he/she promises to pass the payment on to the lender.  Fraudulent foreclosure consultants often keep the money for themselves.
4. DON'T sign any documents without reading them first.  Many homeowners think that they are signing documents for a new loan to pay off the mortgage they are behind on. Later, they discover that they actually transferred ownership to the "rescuer."
5. DON'T ignore letters from your lender.  Consider contacting your lender yourself, as many lenders are willing to work with homeowners who are behind on their payments.
6. DO contact a housing counselor approved by the U.S. Department of Housing and Urban Development (HUD), who may be able to help you for free.  For a referral to a housing counselor near you, contact JUD at 1.800.569.4287 (TTY: 1.800.877.8339) or www.hud.gov
7. DO consider contacting the Homeownership Preservation Foundation (HOPE), which assists consumers facing foreclosure, at 1.800.995.HOPE or www.995hope.org HOPE is a non-profit organization that partners with community-based organizations, mortgage companies, and government agencies and is part of the HOPE NOW Alliance supported by the U.S. Department of Treasury and HUD.