Lake Norman Real Estate and NC Homes for Sale

Housing Recession:  This frightening term is being bantered about in the news quite a bit.  But what does it actually mean to the Lake Norman home buyer or seller?  When should you buy or sell?  Are interest rates going up or down?  Whether its on real estate sites on the Internet, in blogs or at real estate office meetings, most discussions focus on the state of today's real estate market  and predictions for the future.  The reality is, no one really knows.  However,  it is helpful to keep abreast of what the pundits and housing industry experts are saying.  

Here is a summary of this week: 

First and foremost, what has Fed Chief Bernanke said this week?  In a speech on Monday at the Economic Club of New York he said:

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Hardly a day goes by without at least one article in the newspaper about the increasing foreclosure rates, even in the greater Charlotte and Lake Norman area.  What many sellers facing a possible foreclosure don't know is that there is another option.  They, with the help of their attorney and Realtor,  may be able to negotiate what is called a Short Sale which will enable the seller to sell their home for less than the debt owed against the property.   The reality for the lenders is that foreclosures require a lot of work; not just processing the foreclosure but also listing and selling the foreclosed property.  So, they may be willing to take less than the full amount of the loan balance due in order to avoid foreclosing on the property.

 I did my first short sale transactions back during the recession in the early 1990's.  They require a lot of work and patience on the part of the buyers and the sellers but they do work.  So how do you begin?  Here are the first steps: 

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Well, what a difference a day makes; or more precisely, 36 days.  When I last wrote about an almost flawless transaction with a 100% No-Fee loan from Bank of America I felt almost smug.  My client's success silenced the skeptics.  And, the U.S. subprime mortgage market woes appeared to be limited to buyers with low credit scores. 

Since then we have been bombarded with national and local news stories about the still weakening housing market, the increase in foreclosures, the Beazer Homes scandal and the tightening of financing qualifications for home loans.  It didn't hit home until this past Thursday.  One of my buyers was set to close when they were informed by Bank of America that the 100% No Fee loan they had applied for originally was no longer available. 

What does this tell us about what has happened in the past month? 

• Bank of America's No Fee program became so popular that they couldn't handle the demand and their service level dropped to just short of total failure.
• The days of 100% loans may be gone, even for those with great credit.
• When the national trends and issues get to a certain level they touch every market, including Lake Norman

Luckily, my clients were able to work with Bank of America and we closed yesterday, on time, with a 100% No-Fee Loan.   But, I don't recommend that others count on this in the future!

When one of my buyers first told me he was going to get a no fee loan from Bank of America I must be honest, I got very nervous.  Historically, working with Bank of America's mortgage loan division has been challenging. Plus, when something sounds too good to be true, it probably is too good to be true; right?  I kept waiting for the other shoe to drop as we went through each step in the process. 

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