Are you moving to a new home? Or simply wish to make profits from the property in which you have invested? You can then rent your home.

Well, if yes, we completely understand the debate you are having in your head about whether to rent or sell your home.

The choice for anyone depends on various factors such as financial situation, market conditions, costs, and so on. So, what would be the most appropriate decision for you?

Both renting and selling the home have their pros and cons. You need to figure out what suits best for you as per all the conditions and factors around you.

So, let’s understand some of these factors that will help you decide if you should rent your home instead of selling it or not.

When Should You Rent Your Home?

If you are looking to make some extra monthly income, renting your home is a go-to option. But you also need to ensure that after incurring the additional expenses and taxes, you are still making a profit.

Here are a few factors that may support your decision to rent your home.

You Are Temporarily Moving

If you are moving to a new home temporarily, you may later require to return to the place where you are currently residing.

The reason could be anything, a temporary job shift, or temporary shifting to a location for some specific purpose. Renting your home in such a scenario will give you relief. You’ll have a home to live in when you return.

Not only this but renting a home could be comparatively hassle-free and cheaper. It is easier than finding a new home when you return.

You Want To Invest The Rental Income

As renting your home will give you a regular income. If you are looking for some extra earnings by investing this income, renting could be better for you than selling your home.

You could try various methods of investing. It can be rental income such as fixed deposits for reaping interest, government schemes, and so on.

Alternatively, you could also use the rental income to pay the EMIs of your new home if you have purchased it on loan.

Your Cost Of Renting Is Low

You can gain money in both renting and selling. However, renting and selling both have some costs involved.

What majorly determines your decision of whether to rent or sell your home is the profit that you gain after incurring all these costs.

The costs of renting may include home repairs and maintenance, insurance, taxes, the cost of vacancies, and so on. If these costs are low for you and if you are able to make enough profits, then renting your home could be a good choice for you.

When Should You Sell Your Home?

If the above-mentioned factors are in your favor you should go for renting. If not, then below are some factors that will help you make more sense in selling your home.

You Need Cash To Pay For Buying A New Home

If you are moving to a new home and you require liquid cash for purchasing it, you could sell your current home and utilize the proceeds from the sale for buying your new home.

Also, you are not required to opt for any mortgage loan and undergo the long approval process if the equity of your current home is enough to buy a new home. As a result, it will help you to pay your new down payment.

In case, your current home is the only one you could rely on to pay for purchasing the new home. So, there is no point in thinking about renting your home.

You Aren’t Ready To Become A Landlord

Renting your home can help you generate a passive income, but becoming a landlord comes with a lot of responsibilities. You also need to be prepared to take the additional expenses such as home maintenance, repairs, taxes, and so on.

You are also responsible to find “good” tenants and take up the cost of vacancies if any.

You may also reach out to some property management company to look after all these things. But they would charge you a percentage of your rental income. This will cause a reduction in your profits.

If you aren’t ready to take up all these responsibilities and costs as a landlord, deciding to sell your home may sound good to you.

You Are Existing In A Seller’s Market

If you are in a seller’s market, where the number of buyers is more than the homes available for selling, then you should think about selling your home.

As the buyers in such a market have a limited number of options to select from. You can manage to get more attention to get your property sold.

You may also get an opportunity to increase the value of your property. You can also get genuine buyers that will pay the value that you desire.

If you think you will be able to incur the associated selling costs yet make enough profit by selling your property in such a market than the rental income that you could get, selling your home more would make more sense.

Final Thoughts

Deciding whether to rent or sell your home, requires you to analyze certain important factors as mentioned above such as costs, profits, responsibilities, market conditions, and so on.

It is also important for you to understand your goals and consider your financial situation and lifestyle choices while deciding whether to rent or sell your home.

In addition to conducting thorough research, you can also seek the opinion of a professional real estate agent or company. They may help you to make the most appropriate decision by providing you with information about the current real estate market conditions, the value of your home, or the rent charged in your area.

Get in touch for a more expert opinion!

Having a real estate broker by your side is exceedingly indispensable when trying to sell your home. You need several networks and the real estate market know-how to crack a good deal. You have to search for the Flat Fee Real Estate Broker.

However, it isn’t so favorable to pay hefty commissions to these real estate brokers to get your job done. Especially if the commission rates are too high.

Here’s where having a flat fee real estate broker can be your go-to strategy to sell your home. But how far is selling your home through a flat fee real estate broker beneficial for you?

Let’s try digging more into this.

How Does the Flat Fee Model of Real Estate Brokers Work?

When a real estate broker charges a fixed fee rather than a percentage of the sale, it’s a flat fee.

For instance, in a commission-based transaction, you may pay 5% as a commission on a sale amount of $200,000 to the broker. However, in a flat-fee transaction, you will pay a fixed amount for the above sale, which could be $3,500.

So basically, if you pay the broker a commission of 5% on the sale of $200,000 you would pay $10,000.

While, if you are paying a flat fee, you may pay the same amount which is $3,500 no matter if the house sells for $100,000 or $1,000,000.

Pros Of Using a Flat Fee Real Estate Broker

You can win a great deal for your home using a flat fee broker. Below are some pros of flat fee real estate brokers that you must consider.

1. Getting More Control:

At times having more control over the selling process can be advantageous for you. As a result, you could have the ability to make several decisions following your preferences and convenience.

By using a flat fee broker, you may get control over many important selling aspects such as deciding the home price, handling negotiations, or selecting options to market it.

You may also get control to decide if you want to have an open house and not be at the mercy of the broker’s schedule.

Not only this but with some flat fee brokers you may also get the authority to decide if you want to sell the home with the full support of an agent or with a limited one.

2. Saving More Money

As the flat fee charged by the broker does not depend upon the selling price, it can potentially be less and you may end up saving more money. In other words, you may save more of the proceeds from your final sale amount after paying a fixed fee.

In the above example, whether your sale amount is $100,000 or $1,000,000, you shall pay a fixed flat fee that is $3,500. If your sale amount is greater, you may save more under the flat fee model.

It is also observed that usually flat fees are lower than commissions. Hence, you may save money. However, it also depends on the terms that you agree upon with your broker.

3. Proper Budgeting:

Flat fees are mentioned in the listing agreement and usually do not vary as per the final sale amount of your home.

Hence, as a seller, this helps you to do proper budgeting to make things fall in place properly.

It’s especially helpful when your budget is tight. You know what fee exactly you will pay the broker and plan accordingly on your net proceeds.

If you are a seller who is tight on budget and prefers knowing promptly what you will have to pay the broker before your sale to avoid any kind of uncertainty, you should go for a flat fee real estate broker.

Cons Of Using a Flat Fee Real Estate Broker

Even if you may potentially pay less using a flat fee model, it has drawbacks too. Here’s what you need to consider.

1. Getting Limited Services:

Getting more while paying less is something very rare, as you usually get what you have paid for.

A flat fee broker may not provide all the services that he/she would have while working on a commission-based model.

You may get very limited services. The broker may also list your home only on the local MLS which is just not enough to get a good deal.

However, it is not bad to get a few services for paying less, but it still depends on your selling goals and the current situation that you might be in.

2. Earning Less Profit:

You may sacrifice your profit if you choose to use a flat fee real estate broker.

This is so because flat fee real estate brokers have less motivation (no incentive) to negotiate and get you the best deal with top dollar for your home.

Flat fee brokers usually consider volume to make it big and hence, they may not dedicate much time and effort to negotiating to increase your profit.

3. Paying for Additional Expenses:

You can save more money by paying a flat fee and not high commissions, but you may also have to incur some additional expenses.

You may require to spend on marketing, pricing, and other closing activities, which otherwise a commission-based agent would have done.

Your flat fee agreement may include only listing your home on MLS. For attracting more buyers, you are required to incur additional expenses. Hence, it is recommended to consider these expenses before you go for flat fee brokers.

Bottom Line

A flat fee model can help save money, but on the other hand, you also need to be ready to handle other activities associated with selling on your own.

So, depending on your goals you could thoroughly analyze both the pros and cons and decide as per your situation and objectives whether to go for a flat fee real estate broker or not.

For expert opinion contact Elite Properties today!

Pricing your home is the heavy lifting that you need to do when you make up your mind to sell it.

A home’s price is determined by several relatable factors that are unique and different in some way.

It could be that you are considering moving to another area or that you simply want to live in an upgraded house, but selling the existing house can be just as challenging as finding a new one.

There would have been many questions on your mind. This applies especially to the price of your home, such as whether to price according to market value or above or below it.

Figuring out the sale value of your property can be complex and tricky.

It could be difficult to decide what features of your home can help you get a higher value and what cannot. Additionally, how to do pricing concerning the market value of the house can also be tough.

However, if done right you are not far from cracking a good pricing deal for your home while selling.

So, let’s take a look at some expert suggestions and guidelines below on how you can determine an appropriate price for your home for sale.

How To Price Your Home Appropriately?

Use Online Home Value Estimator:

The internet is loaded with tools to estimate your home value for sale. Using an online home value estimator can be a good start for deciding the price of your home.

You need to enter certain details and answer a few questions. As a result of which, the online home value estimator shall provide you with an estimated range of valuation for your home.

It usually finds the available data such as the current value of your home by comparing your property and its features with some other similar listed properties that have a recent sales record.

Online home value estimators shall only provide you with a reasonable price. They do not give the exact data required to do proper pricing for your home. However, it can still help you to get a kickstart.

Connect With a Local Real Estate Agent:

An online home value estimator can just provide you with an approximate idea about the pricing of your home as these estimators use limited data.

Therefore, the next step that you need to take is to approach a well-experienced local real estate agent.

The agent may consider the factors that an online home value estimator may not, such as the recent advancements, the locality of your property, and local buyer opinions and beliefs in the region.

Not only this but the agent may also tend to have inner information about the ongoing sales of homes in your area. The agent can provide you with the best piece of advice on valuing your home at the fairest price.

Conduct Comparative Market Analysis (CMA):

As the housing market conditions change dynamically with time, it is important to stay updated and switch the recent updates and trends for pricing your home rightly.

Conducting a comparative market analysis (CMA) is one of the best ways to price your home for sale appropriately.

You could ask your real estate agent to do this analysis. He/she should review and compare the information about the most recently sold homes in your local market. These are called ‘comparables’ or ‘comps’.

In other words, comparables are homes that are similar to yours and are recently sold. They could be similar in terms of amenities, structure and size, location, and so on.

These comps can be a good consideration when pricing your home for sale.

Know Your Housing Market:

It is crucially important to understand the housing market you are in. The pricing strategy that you shall adopt will be greatly influenced by this.

Usually, there are three types of markets based on which you can decide the pricing of your home:

Seller’s Market:

In this market, the number of buyers is more than the number of homes for sale.

As a result, you can price your home slightly higher than the market value for your home, as the buyers here are contending for fewer homes.

Buyer’s Market:

In such a market, the number of homes to be sold is more than the number of buyers.

Hence, you are required to price your home slightly less than the market value for the house to attract buyers.

Neutral Market:

This type of market has a balance between the number of homes to be sold and the number of buyers for the same.

You need to make sure that you analyze your comparables and try to keep prices accordingly and compete to attract buyers.

Considerations When Setting Your Home’s Price:

While strategizing about the price of your home, you may fall for some common mistakes. That is why the below considerations should be viewed to specify the right price.

• Set aside your emotions to determine a realistic price for your home.
• Don’t overemphasize home improvements, as not all renovations and upgrades have higher ROI.
• Try to understand the buyer’s perspective while setting the price.
• Adjust the price or strategy as and when necessary.

To Sum Up

By applying the above guidelines for pricing your home, you are less likely to disappoint your potential buyers by quoting an overvalued price. You can be assured that you are not underselling your home.

Make sure that you are conducting a profound comparative market analysis and approaching a trusted real estate agent. The more data you collect, the higher the chances are that you will quote the right price for your home.

For more proficient recommendations, get in touch today!

Are you ready with your checklist for house hunting?

If yes, then ensure that you do avoid the most likely mistakes that may hinder you from buying your dream house. Whether you are house hunting for your first home or be it second, you may fail to commit these mistakes.

House hunting is not as easy as just visiting a few houses and choosing the best one. Along with following the best house-hunting practices, you also need to ascertain that you do not make mistakes that can cost you both time and effort.

Your house-hunting process can become more systematic if you are ready with the right pre-requisites.

So, let’s make your house-hunting process smarter and easier by diving deep into the four huge mistakes that you should avoid while house-hunting.

Not Getting Mortgage Pre-approval

You must have made up your mind about house hunting and may have also estimated how much you can spend. The next action step that you shouldn’t miss is meeting a lender and getting a mortgage pre-approval.

Get a mortgage pre-approval before involving an agent in your house search and starting the house-hunting process.

You may be at risk if you are trying to buy a house beyond your budget without mortgage pre-approval. On the other hand, you might also lose the chance of buying your dream house due to a lack of insufficient financial proof.

Hence, it is highly advisable to get the mortgage pre-approval once you have made up your mind to go for a house hunt. This will be advantageous to you in two ways:

• It will give you a clear idea of what amount of money you will need to spend as well as the exact amount of loan you will be able to borrow.
• It will help you gain the seller’s confidence for closing the deal when you get the house you might be interested in.

When you meet your lender to obtain the mortgage pre-approval, he/ she might ask you for documentation such as proof of income or your credit score. He/she might also evaluate your debts if any that already exist.

Once the verification is done your lender shall issue a letter of mortgage pre-approval if you are eligible. This will take you a step closer to making a strong offer while buying the house.

You Are House Hunting Without an Agent

As online house listings are available, you may think of going on a house hunt all alone. Probably, you might intend to save up on the commission.

But sometimes house hunting without an agent might cost you more or you may even lose up on the house that you have always dreamt of.

Also, usually, the seller pays the commission to the agent. Hence, you don’t have to worry about spending extra on the commission charges.

You might also get access to new house listings that wouldn’t even be known in the local real estate market where you are trying to find a house if your agent has a strong network.

With his expertise and knowledge, a good real estate agent can help you select the best options for your house hunting.

So, if you wish to make your house-hunting process more efficient, you should get the help of a real estate agent.

Ignoring The Price, You Can Afford

Ignoring the price that you can afford can be a significant mistake that you may make which will leave you dissatisfied.

You may likely fall for houses that are beyond your spending limits while you go on a house hunt. It is absolutely essential to be self-aware of how much you can afford.

Some houses may make you feel very tempted because of their interior, spacious rooms, high-end appliances, or top-notch location.

However, it is good to buy a house that pleases you, but if it’s beyond the price that you can afford, you may go into a state of stretching your financial means.

You may try to arrange the extra amount that you cannot afford. But you should also realize that arranging the extra amount can increase your expenses as you may require to pay interest if you are buying the house with a mortgage.

Sometimes, you may also control your emotions and try to buy some other house than the one you like which is beyond your budget. This will leave you with deep dissatisfaction.

This is why it’s important to recognize and consider the price range that you can afford. Your best bet is to identify and explore the house listings within your budget.

Not Considering the Locality

Once you have decided on the housing options to be considered further for buying, try to assess the neighborhood of the selected options.

Look for various factors in the neighborhood, because it is as crucial as buying the right house.

It shall not be a good choice to purchase a suitable house in a locality you may never prefer.

Evaluate the surrounding area, community in the neighborhood, availability of public transportation and necessary infrastructure, and the time to commute to places that you visit daily like your office, gym, and so on.

Also, ensure the availability of vital amenities that are important to you.

Choosing an unsuitable locality may again lead you to hunt for another house in a good locality.

It’s wise that you effectively consider the locality and neighborhood while narrowing down your housing options.

Bottom Line

House-hunting is a challenging process but can be made effortless if you are aware of the problems that you may face and the mistakes that can cost you both time and effort. Buying a house is a big decision, so making rational and realistic choices without being impulsive can be immensely beneficial for you and your finances.

For making the right decision, get expert words of advice for your house-hunting need from Elite Properties. We buy houses in any condition and provide fast cash offers. Call us at 718-977-5462 today.

One of the most heartbreaking ways to lose your home is if you can’t make your mortgage payments or if you’ve fallen behind on them. For borrowers who are in a situation where their house is on the verge of foreclosure, there is still some hope. Introducing… Loan Modification.

In a nutshell, loan modifications can make your life stress free by ensuring you pay your current mortgage and save your home from foreclosure.

In this article, we will take a deeper look at what loan modification is all about.

Little More about Loan Modification

A loan modification occurs when the lender changes the loan terms. Loan Modification is an acceptable agreement between the lender and borrower. In it, the lender gets paid and the borrower keeps the house. The modification may be a decrease in the interest rate, extend of the payback period, or a new type of loan.

In most cases, loan modifications are only available in circumstances wherein the borrower is unable to make full payments and their credit is not sufficient to refinance the loan.

For such cases, the option of refinancing is the ideal solution.

Under What Circumstance Should A Borrower Choose The Loan Modification Route?

Loan Modification is a tool for people who are in a lot of trouble and have no other way to save their homes.  It is not for everyone, and it is important to speak with a professional to see if it is the best option for your particular situation.

A borrower who is experiencing a temporary setback is eligible to request help from the lender with their mortgage. In some instances, a lower payment could help the borrower get through the difficult patch and prevent foreclosure on their home.

Generally, loan modifications occur when one is unable to repay the original loan. The attorney or workout company will help you negotiate modification procedures.

How Do Loan Modifications Work?

Although loan modifications can be requested for any type of loan, the most typical loans for which they are requested are secured loans such as mortgages. In the event of possible foreclosure, the lender may be open to modifying the terms of the loan after he/she has concluded that a foreclosure would be a more expensive route than a loan modification which is beneficial to both parties in the long run.

Are You Qualified For A Loan Modification?

It’s not possible to get a loan modification for everyone who’s having a hard time paying their mortgage. To be eligible, homeowners must either be behind on their mortgage payments or be delinquent— they are paying now but there is a risk that they will delay.

Some of the eligibility criteria for a loan modification include job loss, spouse death, and permanent physical or mental issues/injuries that render you disabled and unable to repay the mortgage.

What Are The Benefits of modifying your Loan?

One of the main benefits of an extended term is that it directly affects your annual interest rate. Your 30-year mortgage can become a 40-year mortgage. In exchange for this, you will receive the following benefits:

• A reduced fee makes it possible to provide the borrower with some respite to make it through.

• The opportunity to keep the house as banks would choose to avoid going through the costly process of foreclosure whenever possible.

Loan modifications allow the homeowner to continue making payments.  While at the same time keeping the house is the most beneficial resolution for both concerned parties.

What Are Some of the Drawbacks Of Getting a Loan Modification?

A modification to an existing loan may be a costly but necessary lifeline. The following are the drawback of choosing this path:

• Your loan will most likely end up costing you more money in the long run. This indicates that the greater the number of years added, the more interest you will pay throughout the course of the loan.

• Loan modification is a time-consuming process. We need to get all the necessary documentation such as pay stubs, bank statements, and tax returns. Also, you have to fill out a spreadsheet that compares your income to your expenses. It is mandatory for loans to get modified. You will need to submit a hardship statement explaining why you need a loan modification.

• Depending on how serious your situation is, your loan modification will not approve. You need to provide evidence that you are capable of repaying the loan to win the lender’s trust. If you are actually unable to afford the home, the bank may decide to deny your request for loan modifications. Bank may leave you with the option to short-sell your house.

Loan Modification Programs for You.

• 1. Conventional loan modification (Flex Modification Program) – If you want conventional mortgages, you have the option to go through FMP. FMP will help you reduce monthly payments by 20%. Also, you can extend the term up to 40 years and lower the interest rate.
  
• FHA loan modification – FHA loans include various strategies for borrowers. It gives them the option to reduce payments with an interest-free loan for 30% of the borrower’s balance. The borrowers will only have to pay the remaining part of the loan. After that, he can pay an interest-free loan when the home is about to sell. In this Pandemic, the borrowers also have the option to get a lower rate and also a 25% cut on the monthly payments. FHA borrowers have the option to extend loan terms up to 40 years.
• VA Loan modification –Borrowers with VA Loan can add their missed payments back to their loan balance. Borrowers will work with lenders for a new manageable repayment schedule. They also have an option o extend their loan.
• USDA loan modification – Borrowers backed with USDA loans have the option of modifying the mortgage. It gives an option for you to extend the term for 4o years, lowered the interest rate, and get a “mortgage recovery advance”.    All these programs in the end increase the loan balance due and the total interest paid.  If you have a permanent loss of income your best bet might be selling and moving to a less expensive home or renting.

How to apply for Loan Modification?

1. Collect data about your financial position.

2. Make a plan for your case.

3. Contact your servicer

What Happens to Your Credit Score When You Get a Loan Modification?

If you are considering going for a loan modification, chances are your credit score has already slipped. The majority of the borrowers involved in the procedure are already past due on their payments.

While you’re going ahead with the loan modification process, the “paying by modified terms” remark is on your credit report.

While you’re paying your loan on time, there may be a chance to have a positive impact on your credit score. This positive impact in turn makes up for the previous negative impact.

If you are not sure about this, there is an option for refinancing the loan at a later date as well if necessary.

To know more about the options available to you, contact Elite Properties NYC, one of the companies that buy houses for cash in any condition.

Buying a house in foreclosure may save you a lot of money, but it’s not the only thing that these properties offer. Foreclosures can be an ideal option for investors who are looking to fix properties and sell them for better profits. Although, it’s vital to know that foreclosures come with drawbacks. If you’re considering buying a foreclosed property make sure to do thorough research. Scroll down to read our blog on ‘A Guide to Buying a House in Foreclosure.’

Types of Foreclosure Sale

There are five types of Foreclosure sales: 

1. Pre-Foreclosure

Property is in pre-foreclosure when the mortgage lender has notified the borrowers they are in default, but before the property is offered for sale at auction. If a homeowner can sell during this time, they may be able to avoid an actual foreclosure proceeding and its negative effect on their credit history and future prospects.

Pre-foreclosures are typically listed in county and city courthouse buildings. In addition, many online resources list properties that are in the pre-foreclosure phase.

2. Short Sales

A short sale happens when a lender agrees to accept less money for a property than what is still owed on its mortgage. Borrowers don’t necessarily have to be in default for a lender to agree to a short sale, but usually, the borrower does need to show some kind of financial hardship that would likely lead to default, like the loss of a job.

3. Sheriff’s Sale Auctions

A sheriff’s sale auction is held after the lender has given the borrower notice of default and a grace period to catch up on mortgage payments has passed. The purpose of the auction is to help lender recoup their losses quickly from a loan that is in default.

4. Bank-Owned Properties

If a property doesn’t sell at auction, it goes back to the bank and becomes an REO. Banks usually have a department that manages these properties. You can find these properties online on websites like Elite Properties.

5. Government-Owned Properties

If a home is purchased with a loan that is backed by the federal government, such as an FHA or VA loan, and then goes into foreclosure, the government will seize the property and hire a broker to sell it.

Buyers interested in purchasing a government-owned property must work with a registered broker. The U.S. Department of Housing and Urban Development (HUD) has a list of registered brokers on its website.

Causes for a Foreclosure

There are multiple reasons why homeowners fall into foreclosure. One of the most common reasons for foreclosure is a job loss or unemployment. Other reasons why people fall behind on mortgage payments include debts, marital issues, or illnesses. Also, homeowners during a foreclosure may fall into a low-to-moderate-income category that may cause trouble within the job.

As everything has its pros and cons, buying a foreclosure home is not left behind. Below are some pros and cons to consider when it comes to buying a foreclosed property.

Pros of Buying A Foreclosure House

1. Low Prices

The most prominent pro of buying a foreclosure home is its price. As the homes are priced below their market value they can be an easy catch for investors or buyers. Furthermore, foreclosures can offer a ton of savings. Sourced from the balance, according to the real estate data aggregator ATTOM Data Solutions the worth of a foreclosed property over the past five years has ranged from $93,000 to $166,000. 

2. Quick Closing Process

Comparatively, the average foreclosure process typically closes in 30 days as it’s a quick process. Although, till October 2020 the process took an average amount of 54 days from start to finish.

3. Investment Opportunities

A foreclosed property is a way to earn a good profit. Rehabilitating a house by doing a few adjustments can help in establishing a lot of value and gaining immediate equity. If you’re an investor who wants to flip the property for bigger returns then buying a foreclosure house is an ideal investment choice. With the right upgrades and improvements, you can gain a lot of value for an average home.

Cons of Buying A Foreclosure House

1. Multiple Repairs

As a foreclosure property requires selling as-is, this often relates to the that the property will need serious improvements. These houses need a lot of upgrades as the previous owner fails to maintain the house due to pricey repairs. Hence, if you are someone moving into a foreclosure property you will probably need to spend a lot of money on basic fixture improvements.

2. You May Not Get To View Or Inspect The House Before Buying The House

Foreclosure houses are sold on an as-is basis hence, there is hardly any chance for buyers to view the property. Additionally, you may not even get the chance to professionally inspect the property before submitting your bid. As these are some important points they can be deal breakers for many potential buyers. Also, you don’t have any access to the property before buying it. This means you can’t enter the property, and only look at the exteriors which are the windows and walls.

3. Competitive Market

Buying a foreclosure property comes with vying, there are several people looking to buy a property for cheap. The inventory can go out quickly as soon as the property is listed. Also, due to the pandemic where everything is online and people willingly avoid human interaction, the inventory goes out faster. The mortgage relief efforts during 2020 limited the amount of foreclosed homes hitting the market which created more competition.

4. It May Require a Huge Amount Of Cash

Keeping rehab costs aside, a buyer may require some upfront cash while buying a foreclosure home at an auction. Usually, at such events, buyers may have to bid in cash. Although, if you’re not bidding at such events for a foreclosure property and have good credit you may still bag financing.  

Monetary assistance for homebuyers

USDA Loan Program – 

There are two programs that the United States Department of Agriculture offers in order to help those with low or very low income who live in rural areas. The first program is called the Section 502 Direct Loan Program and the second is known as the 504. Both programs work to help these individuals obtain safe and decent homes.

The Section 502 program helps low-income or very low-income citizens pay for loans used to buy a modest residence in a rural area.

The Section 504 Single Family Repair program offers loans to very low-income people in rural areas who cannot get bank financing. Elderly people may be eligible for outright grants.

Veterans Administration Loan Program

The federal Veterans Administration has a mortgage guarantee program that is open to current service members, veterans, and surviving spouses. According to Military.com, the loans can be used to buy repossessed properties, although a bit of advance preparation is needed.

This program provides benefits that include zero down-payment loans, reduced closing costs, and a waiver of the mortgage insurance requirement to those who qualify.

Purchasing a Foreclosed Home

If you’re looking to purchase a property from a bank, it’s important to remember that you’ll need to be firm when it comes to negotiating prices. It never hurts to start low, especially if the bank has had the property for an extended period of time. In general, it’s a good idea to make an initial offer that’s at least 20% lower than the market price. However, this number could be higher depending on the location of the property, as areas with a high number of foreclosures often result in more favorable prices for buyers.

If you’re able to pay for the property and any necessary renovations completely with cash, you’re lucky. That’s why some buyers choose to team up with investors who can help finance the purchase and renovation, and in return, take a share of any profits when the home is eventually sold.

Bottom Line

When you consider buying a house in foreclosure it can result in potential savings. Although, it surely comes with a bunch of risks to deal with. Furthermore, if you think the home selling process will take a toll on your head, you may sell your house for cash. You can get in touch with Elite Properties. We are a cash buying company helping people to buy or sell houses. We buy houses as-is and offer hard cash in return. Call us today at 718-977-5462 to know more.

COVID-19; A horrifying pandemic crisis that the world is facing right now. As the situation is affecting many sectors around the globe, real estate isn’t left behind. The raging effect of COVID-19 has created a major void in the market. This resulted in a huge downfall with respect to the world market and economy. Let us look deep into the Foreclosure And Short Sales Market.

Many services offered by the real estate market like walkthroughs, rentals, etc. had been hard hit by the virus. As these aren’t the only services that have suffered, other facilities like foreclosure and short sales have also been adversely affected. In this blog, we will tell you How COVID-19 has affected the Foreclosure and Short Sales Market.

The Imprint of Coronavirus on the Foreclosure and Short Sales Market

As everyone is witnessing the catastrophic situation of coronavirus, its effects are also visible with respect to the economy. The loss industries have been facing is immense and would take a while to make up for the loss. Although, the foreclosure market is going through an uptick. According to the research by FTSE (Financial Times Stock Exchange) and REITs (Real Estate Investment Trusts) says there’s an evident index downfall of approximately 7.7 percent (noted on March 9, 2020).

If this goes on for some time, it would be difficult for homeowners to keep up with the monthly mortgage payments. It will later result in increased foreclosure cases, although it is tough to predict the real estate market. As facts state, in some states, the mortgage payments are being held for some time until the pandemic contains.

Coronavirus has Pushed Mortgage Rates Lower

The coronavirus outbreak has made the Federal Reserve take two emergency rate cuts. This apparently brought the bond yields to almost zero. The usual 30-year-fixed-rate-mortgage has dropped to 3.29% (noted on 5 March). As stated in the records, previously the 30-year-fixed-rate-mortgage was lowest in the year 2012 amid the recession when it hit 3.31%. Additionally, the 15-year-fixed-rate-mortgage also fell by 16 basis points to 2.79% according to Freddie Mac.

The main cause of the mortgage rates slump is because of the treasury market which has sunken with a lot of margin in the past months. Furthermore, the uncertainty of mortgage rates shall remain in the ditch for a long period.

Corona on Short Sales

When businesses are close around the globe and many of them can’t go on their jobs. So, homeowners have no choice but to sell their houses for a living. Homeowners with no jobs have the only choice but to sell their houses for the bare minimum profits. This measure is to perform their regular routine and satiate their daily needs. A short sale can cost less than a foreclosure to the lender. This always proves to be the most viable way for lenders to minimize the loss and improve profits. Additionally, a short sale might not damage the credit score of a homeowner.

If you have a hefty amount of mortgage to repay then your only possible option is to fulfill the amount. You can do it by selling your house to a cash-buying company.  As there is a rapid increase in short sales it is evident that problems like unresponsive lenders, misplaced documents, erroneous or unrealistic home value assessments, and prolonging processes may make the whole process difficult. In such a chaotic situation, Elite Properties is one such company that will help you sell your home fast for cash on a fair market value. We also buy your house as-is. We won’t ask for any lengthy documentation process, which automatically cuts the hassles of a troublesome sale.

You can call us at 7189775462 or visit us at Elite Properties NY to learn more about the home selling process with us. Where everyone around the world is going through the pandemic crisis we’ll help you be at ease with the home selling or short sale process.

Homeownership is considered to be the priority goal when it comes to the vision slate of Americans. It has been contemplated as a sign of financial stability among the majority of American communities for ages.

This is why, the thought of losing a home can be draining, not just financially, but, emotionally as well. If you’re facing a daunting situation where you’re not able to pay the mortgage payment, or you’re already in arrears then, it’s time for you to take complete charge and identify reliable ways to get out of the labyrinth. Otherwise, it may lead to repossession of your home.

What Is Repossession?

Repossession is the stage just before foreclosure. Foreclosure occurs when you fail to pay three consecutive mortgage installments whereas, the process of repossession starts when you miss your first monthly installment. Your mortgage lender would ask you the reason but, allow you to pay the pending installment the next time. In real estate language, this stage is termed ‘arrears’.

However, if you still lose out on the due installment, you won’t be provided with a grace period. The lender will issue a warning letter against you declaring that you can be evicted from the house at any time and the lender would have the right to sell your house. To avoid such a scenario, you’ll have to repay the outstanding mortgage debts immediately.  If you cross this stage without taking suitable action, your house falls in the foreclosure category directly.

Here are the best ways to avoid repossession of your home…

Evaluate Your Budget

Understanding the bifurcation of expenditures and income holds extreme importance. Many families follow specific guidelines for their monthly expenses considering the single revenue source.

For example-

• Housing – 35% (rent, mortgage, taxes, repairs, insurance, and utilities)
• Transportation – 20% (gas, oil, repairs, insurance, parking, public transportation)
• Debt – 15% (credit card, personal loan, student loan, and other debt payments)
• Other Expenses – 20% (groceries, medical bills, prescriptions, clothing, and personal items)
• Savings and Investments – 10% (monthly contributions to retirement, investment portfolios, or savings account)

Rendered percentages above are subject to change or are tentative as the needs and family size vary from house to house.

Mortgage Payment Protection

If your emergency funds are not apt to fulfill the payment then, the next step you can take is checking whether you’re entitled to any benefits such as mortgage insurance. Mortgage Payment Protection Insurance (MPPI) is designed to cover mortgage payments in events such as mishaps, sicknesses, or redundancy. These are some of the whys and wherefores which eventually halt your income source.

Communicate With Mortgage Lenders

The moment you fail to repay your mortgage installment you ultimately fall into arrears. In such cases, the lender will contact you through legal and private mediums which are calls and letters. If you miss subsequent repayment demands, the lender can rightfully start property repossession proceedings against you. It is advisory to respond to the calls and repossession notices regularly to evade such circumstances.

As a precautionary measure, you can ask your lender to modify the term or negotiate the mortgage installments to make the repayment more affordable. Also, do not pay any extra fees or monthly charges if you have already made an agreement of repaying arrears.

Rent Your Home

If you have an alternative place to your home to stay, you could move out of your home and rent it to tenants. Consider having a conversation with your lender prior to migrating out of the house as they may charge a higher interest rate on the mortgage if you no longer reside there. Make sure the amount you charge as rent to the tenants, should cover the mortgage payment inclusive of the extra costs of being the landlord.

Renting your home or lodging a part of it would help in increasing your income which aids you in faster repayment of the mortgage.

Sell Your House

Selling a property in the market might not assure inevitability, but it might be the only way to stop repossession. If you are not able to keep up with the repayments or due to some financial crisis you should act quickly and sell your house.

There are several companies that make a proposal based on the current value of the property. Such companies have the cash and infrastructure organized to expedite a purchase. It gives you certainty concerning price and timescale, ultimately providing you with a higher value of the property. Companies like ‘Elite Properties buy houses within 3 days in all-cash offers.

‘Elite Properties’ is one of the companies that offer you, we buy houses for cash service in New York in your crucial time.

Final Word

Mentioned above are the tips to avoid repossession of your home that would surely help in your crucial times. Furthermore, you can contact reputed real estate companies in NY like ‘Elite Properties’ for smooth sailing of circumventing the repossession of your home.

Being one of the renowned facilitators of real-estate services in NYC, they assist their customers in every step. Therefore, keep patience, and connect with Elite Properties.

Property values have levitated and tumbled over the past decade, but one thing will always remain the same, the value of your home will be associated with the value of other homes in your market. Many homeowners know the amount they have invested in their property including monthly mortgage, but not everyone knows what the current value of their property holds. So, how does it matter? If you are intended to continue living in your current house for the foreseeable future and repaying your mortgage then why would you care about its current market value?

There are a whole lot of reasons to know your home’s current market value such as – Insurance purposes, financial future planning, property tax, relocation, downsizing, or trading up, the possibilities are so many.

Online Research

In recent years, a proliferation of online resources has emerged to provide you with an answer before you actually consult any person in the specialized field. There are many websites at your service which offer an online home value evaluation. Such platforms help in examining the data for an estimate.

You would be asked to enter information about the property. Such as detailed measurement of the carpet area, super built-up area (in square feet), date of construction – completion, and the number of rooms, etc. After you have entered all the information given above, the online estimator will evaluate the property’s market value.

Other public records like property transfers, deeds of ownership along with tax assessments could predict your home’s value based on recent sales and listing prices.

BPO or CMA

In real estate broker price opinion is often associated with short sales and foreclosure, but many homeowners and companies like relocation firms call for them. While collaborating with buyers and sellers for listing price or examination value before acquisitions, real estate agents do a comparative market analysis.

A BPO or CMA is another method of estimating your home’s worth. Such evaluation methods rely on the recent sale value of similar properties in the local area or vicinity.

FHFA Index Calculator

Homeowners that are wary of AVMs could opt for the FHFAs House Index Price calculator. The Federal Housing Finance Agency’s House Price Index (HPI) is a broad measure of the movement of single-family house prices. The HPI calculator gives you an idea of how much your house is worth, and how its value of it has changed over the past years. The calculator is designed to help you understand the estimated value of your house.

Hire A Professional Appraiser

An appraisal is mandatory for any lender prior to approving a mortgage and carrying out an estimate. Hiring an appraiser is essential for a proficient outlook.  He will assess the condition of your home and provide an expert opinion on its estimated market value.

Things an appraiser will consider before evaluating the property are-

• Verification of property’s existence, acknowledging the location and address in detail

• Examination of the outdoors

• A 360-degree evaluation of the exteriors of the home or the respective property

• Listing down pros like – lakes, shopping centers, parks, etc. will add up to the seen desirability of the home

• Verification of the area in square footage for accuracy in the database

• Evaluation of the prevailing room numbers

• Current conditions of the attic, basement, and garage including their measurements

• Checking for damages (if any) in the property

• Testing functionality and appearance of permanent features such as built-in appliances

• Testing workability of the HVAC systems

• Comparing recently sold homes in your area with your property to determine your home’s market value

Why It Is Important To Know Your Home’s Value?

If you are on the seller’s board then it is incredibly beneficial for knowing the property’s worth, as it helps to derive the estimate or listing price. Even if you are not planning to sell the house, it still stands useful for many reasons.

The benefits of finding a home’s value don’t end with a purchase or sale: Refinances, home equity lines of credit, insurance premiums, and annual property taxes are all based on home value

Determining a property’s worth would allow for evaluating affordability for things in the future.

How To Increase Your Home’s Value?

Little alterations make a big difference! There are many low-cost ways to add value to the home. Homeowners that can afford renovations can opt for it. Given below are some points you can consider to increase your property’s worth –

• Spacing up and removing excess or unwanted furniture

• Upgrading your kitchen, repairing breakages and polishing helps grab the attention of a buyer

• Beautify and keep the bathroom clean

• Painting dead walls and adding beautiful pieces that add to the beautification of the place

• Replacing upholstery, rugs, and carpets

• Hire a certified home inspector

Final Word

The tips for the assessment of your house’s worth given above would surely help you. Whether you want to sell it or just for an idea about the investment you have made to date in your property.

Furthermore, you can contact reputed real estate companies in NY like ‘Elite Properties’ to keep you safe from real estate crises and help in the smooth sailing of your plan of action for the coming times.