11 Reasons the Real Estate Market Will Turnaround in 2014

Since the peak of the market several years ago a lot has changed and real estate may be poised for a solid recovery in 2014.  Here’s 11 reasons 2014 might be a good year for  Real Estate!

  1. Median home price is around $150,000 while the median home price for the US is $217k.  This makes real estate more affordable than many other areas which is attractive to companies moving here.
  2. We currently have high unemployment of a skilled work force.  Although high unemployment isn’t a good thing it is again attractive to business who are considering moving.
  3. The cost of owning a home is now on par with cost to rent a home.  Why rent when you can own for the same price?
  4. Inventory of homes has been consistently falling and we are now at about the same inventory we had in 2006.
  5. We have 9 months inventory down from a peak of 19 months in October 2008.
  6. High Speed rail is coming connecting Toronto and Oshawa.  This will create new jobs and make Toronto the first city to have high speed rail in Canada.
  7. Interest Rates should remain at or near all time lows.
  8. Banks are finally lending again and you can now get loans of up $417,000 with as little as 5% down.  Last year you needed 20% down.  This opens up the buying pool to a lot more people.
  9. This election year is almost over and all the negativity of endless political commercials will end.  The constant shock words like “unemployment”, “Recession”, “Real Estate Crash” heard on radio and TV will end.  This will help the psycheof the public’s perception.
  10. The stock market has rebounded with the Dow solidly above 11,000.  With people’s account values up they start to loosen the purse strings a bit which not only directly affects real estate purchases but also affects the economy and unemployment as people spend more.
  11. Investors are back!  The difference between these investors and the one’s who got us into this mess is these investors are much more conservative and they are mostly cash buyers.  Investors are necessary for a healthy market as they pick up foreclosures and “fixer uppers” and add value to those homes and neighborhoods.

As a Realtor

For Buyers

Buying a home is an important decision. As your Realtor, I am Your Consultant.  I am Your Negotiator.  I am Your Overseer of the Transaction Details. 

You’re decision to buy a home will be a rewarding one. I am your consultant that will guide you through the entire buying process from getting you pre-approved with a trusted mortgage provider, to getting a home inspection, to picking up your keys on closing day.

I am your negotiator. I have your best interest in mind and will use my skill, experience, and focus to negotiate the best price on your behalf for your new home.

I know the neighborhoods in beautiful Bucks County, Montgomery County and Philadelphia. I will help you find the perfect home that fits your lifestyle and budget.

I am your overseer of transactional details. I will anticipate any bumps along the way and will answer your questions. I will explain all clauses and exactly what you are signing. Mistakes cost time and money. My attention to detail will save you both. Once you put an offer on a home, I will be the liaison between your financial institutions, your lawyer, and your home inspector. I will ensure everyone has what they need to complete their part of the transaction. I won’t stop working until you are moved into your new home and satisfied.

Bankruptcy Help

There are several ways to stop home foreclosure. You do either one of them a combination of more than one them.

Here are the options you have to stop home foreclosure:

A. Options can be used to save your home:

1. Loan modification
2. Reinstate your loan with you IRA money or borrow from relatives or friends
3. Work with default paper investors
4. Partial claim through FHA loan insurance
5. Request forbearance from your lender
6. File bankruptcy to buy you sometimes

B. Options can be used to stop foreclosure sale:

1. Do a short sale to prevent foreclosure from staining your credit record.
3. Do a deed in lieu foreclosure to give the property back to lender in exchange for lender not to report your home foreclosure to credit bureau.

If none of above options works for you, you can still have other way to keep your home. You can also file Chapter 13 bankruptcy to stop the foreclosure sale right at the morning of the day that foreclosure sale is conducted. You can also choose to do a short sale to stop foreclosure and keep your credit history not to be stained by the foreclosure record.

Some borrowers thought that filing Chapter 13 bankruptcy could automatically save their home. But, this is not true. If you file a Chapter 13 bankruptcy, you may or may not get approved by the judge depending on your financial situation. If the judge does not approve your bankruptcy filing, lender can initiate the foreclosure on your home again. Filing Chapter 13 does help you to buy sometime, possible few months and even a year or longer to save your home. Some borrowers do use this strategy to stay in the home for free for few months, a years, or even longer. Imagine that if you stay home for a year of more without making your mortgage payments. Let said, the monthly mortgage payment was $1500 per month and $18,000 a year. Staying in a home for one year is equivalent to an increase of pre-tax salary of at least $25,000 a year. For some, this is a very good option for them. However, I don’t encourage you to do that because the financial consequence can cost far more than that. Do you still remember how much could cost you for being unable to own a home for ten years as I described earlier?

If you got a Chapter 13 approved by the court and you make ALL of the payments, you can keep the house as soon as you make payment under the plan.

I am not an attorney and not in a position to give you any legal advice. What I am giving you is the information that how it works. You should also always seek the consultant from an attorney on any legal issue. Again, I am not giving legal advice on whether you should or should not file a bankruptcy to keep your home.

But in my personal opinion, filing bankruptcy is the last avenue you should take. You can file Chapter 13 right before the morning of the foreclosure sale to stop it. In order to do it right, you should at least give yourself one week to work with a good bankruptcy attorney before the foreclosure sale is conducted.

Now, after you reading this book, you should know that filing bankruptcy should never be your first option because you have known that there are several much better options than bankruptcy.

The reasons I said so are:

1. It is not at bankruptcy attorney’s best interest to tell you not to file bankruptcy;
2. It is not the best interest for a bankruptcy attorney to tell you all those options you have to keep your home;
3. It may not fair to some attorneys that they don’t want you to know those better options you have because most of them do not know those options that I have been described in this book.
4. There are upfront costs to you for filing bankruptcy. It cost you $1500 or more to hire an attorney to do it for you.
5. There are future financial consequences for having the bankruptcy in your credit reports.
6. There could be uneasiness and even pain emotionally for some people to go through the lengthy process of bankruptcy.