It is time to start investing in Real Estate! (again). There is a perfect confluence of factors occuring which make right now the perfect time to re-think of Real Estate as a great long term investment. Consider these factors:

• The real estate pricing bubble of the last decade has officially burst and real estate prices have returned to their 40 year trend line. See the graph below.

• Foreclosures are near record highs meaning there will be record numbers of people looking for rental properties.


• Through the HAFA program the government is giving incentives to lenders to let borrowers out of their mortgages for less than they owe. This means banks are more willing than ever to accept substantial losses on their properties.


• The cost of money is at historic multi-decade lows. For investors with good credit, banks are anxious to loan money and the long term cost of money is approaching the cost of inflation, meaning money is almost free. It's just a matter of finding a safe place to put it to work.


• On the local front, Springfield Missouri is a thriving and growing city with several strong companies expanding operations here. Jack Henry and Associates, O'Reilly Automotive, and Bass Pro Shops are just a few of the growing and thriving business that are driving population and business growth in this area.

While there are risks, the risks have been drammatically lowered over the past few years and the other factors noted above make it almost a no-brainer NOW IS THE TIME TO BUY INVESTMENT PROPERTY!

Contact a Springfield Missouri Real Estate Agent today!

Foreclosure:

You Have Options...

You have a way out...

You Don't have to go there!

Options. Alternatives. Choices. Thankfully, YOU have them!

In these harsh times, having options is what can keep you afloat. And for those staring down possible foreclosure, there are many life-savers to cling to - better and smarter choices.

Bottom line...there are tools to help you avoid foreclosure (a.k.a. the literal ruination of your personal finances).

And let's be perfectly clear...beyond costing you your home, foreclosure will ravage your credit score, making it impossible to land a reasonable mortage rate in the near future (among many other things). It even makes it harder to convince landlords to rent to you. Not good.

BUT...let's take a deep breath of relief. Why? Because you can sidestep foreclosure even if you are already late on your mortgage payements. How?

There are 10 Viable Alternatives to Foreclosure That You Need to Know...

Depending on your circumstances, some are a better fit for you than others. But ALL are better then tumbling into foreclosure - something your lender wants to avoid as well. Here are some options to consider:

• Repayment Plan. If you are 1-3 months behind on your mortage, talk to your lender and negotiate a fixed length of time to repay the amount you owe plus any late fees and interest. The lender simply will add this portion to your regular monthly bill to make up the difference. For example, your lender may agree to add half of the amount of your first missed payment into your next two regular payments.
• Forbearance. If you have a temporary loss or cut in income, ask your lender if they would be willing to reduce or suspend your payments for a certain length of time. At the end of that agreed upon time period, you restart your usual monthly payments. In return, the lender may ask you to pay one lump sum or to make extra montly payments to restor the status of your loan.
• Reinstatement. Often used in combination with forbearance, the lender agrees to accept the total amount of back principal and interest by a specific future date.
• Claim Advance. This is also known as "partial claim". Your lender works with you to obtain a on-time payment from the FHA-Insurance fund to bring your mortgage current. The federal government will give your lender an interest-free loan in the amount you owe. In return, a lien isplaced on your home and remains there until you pay the mortgage in full or sell your house. You can qualify if your loan is between 4-12 months delinquent.
• Loan Modification. If you can make part of your monthly payment but are in danger of falling behind, talk to your lender about changing the terms of your mortgage. This is like refinancing your home. The lender may add your missed payments back into the outstanding balance, cut your interest rate, extend the loan length, or do all three.
• Short Sale. Work out a deal with your lender to sell your home for whatever the market will give you. If your property sells for less than what you still owe on the loan, the lender takes the proceeds from the sale and discharges your remaining debt. New laws allow you to use a licensed agent to help you short sell your home and it costs you nothing. Call me at 417-459-5116 and I can show you how!
• Deed in lieu of foreclosure. This should be considered something of a last resort. If you are unable to sell your house, you can seek to transfer title back to your lender and, in return, the lender cancels the rest of your debt. You lose all your equity and still face taxe consequences, but your credit won't be as badly impacted as it would in a foreclosure. This option may not be accepted by the lender if you have a second mortgage or if there are liens on the house.
• Reverse Mortgage. If you have little remaining balance on your mortgage you can use this option to convert your equity into cash while retaining ownership.
• Assumption. Under this arrangement, another qualified buyer assumes full responsibility of your mortgage. It's important to note, though, that not all mortgages are assumable.
• Payment Assistance. Housing counseling agencies sponsored by the U.S. government can help you find special borrower programs. Call the U.S. Department of Housing and Urban Development (HUD) at 800-569-4287

The worst thing you can do? Hide, duck your lender or ignore the problem. Remember you have Choices.

Me and the Home Advocacy group at OzarksDreamTeam.com are here to help. Please call us if you have any further questions.

What is a Short Sale?

What is a short sale?

A short sale is a negotiated settlement between a homeowner and a lender by which the lender agrees to accept less than the outstanding principle balance of the home loan as payment for the loan.

Why would I want to do a short sale?

If you are a homeowner who owes more on your property than what your property could sell for and you are facing a financial hardship such that you are unable to make regular payments on your home loan, then a short sale might be a good choice for you to avoid the more costly and credit-damaging alternative of foreclosure.

How is a short sale different from a foreclosure?

A foreclosure is an involuntary seizure of your property by a lending institution. It is costly and time consuming for the bank and more damaging to your credit. A short sale on the other hand is initiated by you and is a cooperative action between you and the bank. In short, short sales are a win/win in comparison to foreclosures.

How do I know if I qualify for a short sale?

Ultimately the decision to accept a short sale is up to the bank. First you must be able to demonstrate that you have a hardship which makes it impossible for you to continue to make regular payments. Beyond that, other factors are: 1) Do you have assets that could be liquidated to cover the loan deficit between the market value of the home and the balance of the loan? 2) Can a qualified buyer be found for your property at a price that the lender finds acceptable? 3) Are there other liens on the property?

Many home owners get frightened or frustrated by the process of negotiating with a bank. Having a real estate professional who has been through the process takes away much of the burden from you of pricing your home, negotiating with the bank, finding a buyer for your home, preparing the necessary paper work, following up with the bank, and ensuring that your interests are being taken care of.

Are there tax implications with a Short Sale?

The general rule is that the amount of debt forgiven by the bank which is the difference between market value and the balance of the loan, is taxable income. However, legislation passed in 2007, called the Mortgage Forgiveness Debt Relief Act of 2007, allows many debtors to exclude such income provided the mortgage was for the principle residence. You can find more information on this topic on the IRS Website.

Are there other options besides a Short Sale?

Yes. Every situation is different. Call a Springfield Real Estate Agent today to discuss your options.