If you watched CNBC today you likely heard "Bond Guru" Bill Gross comment on interest rates.  His prediction is that rates will continue to fall, likely as low as 4%’s.  1% reduction in rate is the equivalent of a $10,000 reduction in price.  So homes will be slightly more affordable.  The big question is whether buyers who are taking advantage of the market will wait after hearing this news.

The bottomline should require you to ask these questions:

1. Why am I moving?
2. What is my motivation for moving? (yes ask it again)
3. Why do I NEED to buy?

If you are buying investment property then there might be a reason to pause.  If you are renting, you should have already bought something.

Here’s more from the interview:

"The mortgage rate will come down another 50 to 100 basis points," Pimco’s founder and chief investment officer said. "That’s basically what the government needs. They need a 4 1/2 percent to 5 percent 30-year rate in order to support home prices and, yes, to encourage refinancing and the process of reliquification within the economy. "

His advice: "[OWNERS] Don’t refinance yet. "

Purchasers on the other hand should move forward, especially, first time home buyers who should take advantage of the $7,500 Tax Credit while it lasts.

Some time next year, he sees stabilization coming to the economy, and lower mortgage rates are an essential part of that process.

I’ve gotten several questions from new buyers and other from my previous blog post about short sales that I’d thought I’d right a little something about Short Sales.

A short sale is what happens when the bank takes less then what they are owed.   For example,  a buyer buys a home for $150,000 in 2007.  Unfortunately, they lose their job in early 2008 and cannot pay their bills.  They try to work something out with the bank on their late payments and their account rep suggests a short sale (not usual).  From there they put the home on the market with a Realtor and get and negotiate a sale for $125,000.  They avoid foreclosure, eviction notices and investors knocking on the door at all hours… well maybe.

The real world isn’t so clean.

What has to happen in order for a bank to consider a short sale:

• Some sort of hardship - job loss, death in the family, medical bills (KEY: MUST BE DOCUMENTED HARDSHIP)
• Must be "upside down" and owe more than the home is worth when sold through a Realtor

Some things that will absolutely help you if you are in this situation:

• Go look and get approved for an apartment or rental immediately
• Keep all documents for eveything as soon you know you’re falling into foreclosure
• Don’t be fooled, filing bankruptcy can help you stay in the home longer but won’t stop the foreclosure process.

Benefits of a short sale to owner

1. Get to stay in the home a little longer with no payments.
2. Some lenders look at it as slightly better than a foreclosure when purchasing another home.
3. Some banks will NOT make you sign a promissory note!
4. Avoid foreclosure process.

If you have any questions, feel free to comment or e-mail me.

According to recent studies, consumers prefer a one stop shop. The Jarvis Team has always done this, but never quite so openly.

Now we are announcing our new Concierge service (with a directory coming out in the new year). If you are reading this and need any services in the metro Atlanta area, don’t hesitate to call me or e-mail. I’ll gladly refer the professionals that have made my business so successful.

Many of these service providers are business owners that I meet with once a week in some cases. This includes (but is not limited to):

• Home Inspectors
• Mortgage Brokers
• Painters
• Pest Control
• Air Condition Repair and Service
• Pool Maintenance
• Landscaping
• and more…

So don’t hesitate to call the Jarvis Team at 770-374-4667 if you need any services in the metro Atlanta area.