CT Real Estate Unleashed By Jessica Beganski

All About the Farmington Valley Greenway

It’s Getting Wild In Here

Jessica — Mon, 14 Sep 2009 18:19:31 +0000

My husband mentioned to me over the weekend that he heard a report that Connecticut has more forest today than it did in the 1800s. It makes sense to me that despite our development of land for housing and commercial purposes, we have much less farmland now.

It also makes sense to me that with more forest, we would have more wildlife. (I don’t need grant money to figure that one out.)

Over the weekend, yet another Connecticut resident posted on this blog that he had seen a wolf in Waterford. Over the last year, five different people have claimed to see wolves. There is also a forum where even more people claim to have seen wolves.

I know there are coyotes in state. I’ve personally seen coyotes more than a dozen times.

While looking for info on wolves, I came across this helpful comparison of wolves and coyotes - in case you’ve seen a dog-like animal and aren’t sure what it is.

More of a feline admirer? We have bobcats in Connecticut.

I’ve also seen black bears personally, both times in Avon. But I’ve heard accounts from friends of sightings in West Hartford, Bloomfield and Simsbury. There’s a great photo of a napping bear on the Courant’s web site.

Then there was the moose on the loose in New Britain.

And I don’t want to forget our winged friends such as hawks and eagles. The CT DEP estimates that over 100 Bald Eagles have their winter nests here. I have a hawk that likes to perch in my neighbor’s tree and I hear it sometimes from my home office.

If you’re interested in birds in Connecticut, check out this photo stream on Flickr.

Other than my fuzzy cellphone photos of turkeys, the only wildlife photo I’ve taken recently is this ferocious terrorizer of all things small and slow…the turtle.

You may also enjoy reading:

Me V. The Chipmunks

Do you dig real estate news, tips and advice? Sniffing around for pet-related information in Connecticut? Get Unleashed - the blog that’s helping to find homes for people and pets.

Alternatives to Abandoning Your Pet When Facing Foreclosure or Eviction

Making Home Affordable Program - Refinance and Loan Modification Options for Homeowners

Jessica — Fri, 28 Aug 2009 14:45:12 +0000

If you have a Fannie Mae, Freddie Mac or now, FHA-insured mortgage (HUD recently announced that FHA-insured mortgages will also qualify, effective August 15, 2009), you may have the option of refinancing or modifying your loan through the Making Home Affordable program.

Do I have a Fannie Mae, Freddie Mac or FHA mortgage?

Fannie Mae Loan Lookup

Freddie Mac Loan Lookup

I couldn’t find a loan lookup for FHA so I suggest you contact your loan servicer (the company you pay your mortgage to) or review your loan documents.

Note: If your loan is not backed by Fannie Mae, Freddie Mac or FHA, you still may be able to take part in the program. Participation in the Making Home Affordable is mandatory for these types of loans but optional for others.

What’s the Difference Between Refinance and Loan Modification?

The Home Affordable Refinance Program is designed to help home owners who are current on their mortgage (no late payments in last 12 months) and upside down in their mortgage - the amount owed on the first mortgage is up to 125% of the home’s current market value. There are other qualifications but essentially, the home owner must be able to afford the new payments and it must be a better overall deal for the home owner. It’s important to note that this program will NOT reduce the principal owed on the mortgage - it only reduces the interest rate.

The Home Affordable Modification Program is designed to help home owners who have fallen behind in their payments. The program is available only for primary residences and for the first mortgage originated before January 1, 2009. Home owners must show that they:

Have a monthly mortgage payment (including taxes, insurance, and home owners association dues) greater than 31 percent of their monthly gross (pre-tax) income; and

Have a mortgage payment that is not affordable due to a financial hardship that can be documented.

Participation in HAMP will reduce the interest rate to as low as 2% and may even extend the term of the mortgage. However, home owners may be required to agree to a principal forbearance, which defers (not eliminates) repayment of the principal owned to a later date.

Applying Immediately Stops a Short Sale and Foreclosure

Please note that if you are in the process of asking your lender to approve a short sale, contacting your lender to also qualify for a refinance or loan modification automatically stops the short sale approval. It will also stop a foreclosure until you complete the application process.

Who do you contact?

That’s the question of the hour. The web site offers several phone numbers - one to speak to a HUD counselor, one to call the HOPE NOW hotline and another to find your loan servicer’s contact information to contact them directly.

My advice is to determine which you are most likely to qualify for - the refinance or the modification based on the criteria above and the FAQ’s on the site. Then, gather all the information recommended on the HUD counselor page and call your loan servicer directly. Ask them to either apply for a refinance or modification under the Making Home Affordable program.

You may not qualify for either program so your option may still be to do a short sale.

You may also enjoy reading:

Is Your Connecticut Real Estate Overtaxed?

Do you dig real estate news, tips and advice? Sniffing around for pet-related information in Connecticut? Get Unleashed - the blog that’s helping to find homes for people and pets.

http://www.youtube.com/watch?v=pEx8ZT2iR64

As the Market Turns…Here Come the Multiple Offers

Jessica — Tue, 25 Aug 2009 17:03:49 +0000

With the first time home buyer credit set to expire, interest rates low and the feeling that maybe all this good stuff is about to come to an end (with inflation, higher taxes, e.g.), home buyers have a sense of urgency that they haven’t had in years. This is the stuff of a seller’s market. This is gettin’ while the gettin’s good.

What’s my evidence?

I called yesterday to set up a showing for an average home in Rocky Hill and it’s gone after two days on the market. Three offers, baby.

I spoke to a listing agent yesterday about two of her listings in Wethersfield. Four offers between the two. Both on the market for months before getting any offers.

I had three offers on my listing Avon and just received another call on it from an agent asking to write a back-up. On the market for over a month with no offers.

Anecdotal evidence to be sure but when each agent I talk to says the same thing - one minute there’s no interest and all of a sudden there are two or three buyers or that homes that have been sitting for months are suddenly selling, I know there’s something going on.

The Bad News for Home Sellers

There is still a lot of inventory out there. Not all towns are seeing this type of activity. Not all homes are getting the activity. This uptick in the market is selective. Home sellers should not take the surge in the market for granted. You still need to have a well-priced home, in a desirable area, with features people want for the price.

The Bad News for Home Buyers

If you happen to be shopping in a price range and town that is hot, get ready to pay asking price. Or, wait until Congress approves (maybe) another $8,000 credit.

Maybe this is temporary. Maybe it’s the last heartbeat before the patient dies. Maybe it’s the start of a climb in overall real estate prices that will last into next year. Who knows but all I can tell you is that don’t be surprised if there are multiple offers and don’t be surprised when there isn’t. It’s a weird market out there.

You may also enjoy reading:

CT Real Estate Market Reality Check - 5 Trends Driving the Market

9 Home Features That Sell Real Estate in CT

Do you dig real estate news, tips and advice? Sniffing around for pet-related information in Connecticut? Get Unleashed - the blog that’s helping to find homes for people and pets.

Time Running Out for $8,000 Home Buyer Tax Credit. Or Is It?

Jessica — Fri, 21 Aug 2009 17:54:56 +0000

The First-Time Home Buyer Tax Credit is part of the American Recovery and Reinvestment Act of 2009. In it, Congress authorized a first-time homebuyer tax credit of up to $8,000 for home buyers meeting certain qualifying criteria. The program’s goal was to stimulate the real estate market and the evidence is that it’s worked.

But time is running out for credit - it expires December 1, 2009.

What that actually means is a buyer must have closed on their purchase by December 1, 2009. With closings taking much longer than they did last year, buyers only have a small window of opportunity.

I would recommend that if you’re planning on using the credit, have the home you want to buy under contract no later than October 2, 2009.

There is a good chance Congress will extend the credit but the deficit may get in the way. See Congressional Quarterly article. We’ll see what happens when Congress reconvenes in September.

No More FHA Spot Approval for Condos

Jessica — Wed, 19 Aug 2009 17:27:35 +0000

Back in July I wrote a post about FHA approval for condos and in it I mentioned that FHA can do a spot approval for an individual condo unit in a complex that is not already FHA approved. The spot approval is an option for a home buyer (through their lender) to get a condo they wanted to buy OK’d by FHA.

However on October 1, 2009, the FHA spot approval will be eliminated. In reality though, the deadline is earlier because lenders need to get their loan packages to FHA well in advance of the October 1, 2009 deadline.

If you’re considering a condo that will require a FHA spot approval, my advice to you is get moving fast.

However, if the complex you’re interested in has a “right of first refusal” written into its declarations and by laws, a spot approval will not help you currently since it’s an automatic denial.

What is a right of first refusal?

From National Associations of Mortgage Processors:

“A right of first refusal places a restriction on conveyance of the seller’s title and in short, allows the HOA the right to buy a unit at the price and terms the owner might negotiate with an eligible buyer. Often the association elects to include a right of first refusal clause in their declarations and bylaws because they do not want to allow one of the unit owners to sell at a discounted sales price because they fear that their own market values would be adversely affected.

HUD, however, views a right of first refusal as having the potential to negatively impact the marketability of the property because potential buyers may not be so thrilled about proposing an offer only for it to possibly be refused because of the HOA’s right to override the offer and thus purchase the property themselves. HUD views the right of first refusal as a restriction and thus, an added risk for the property itself. “

It may actually be better to wait until October 1, when FHA will not automatically deny a complex that has this clause in its documents. A full approval will be required for the entire complex and at this point, I’m not sure who will pay for this (the buyer, the lender, or the complex) and how long full approval will take.

Do you dig real estate news, tips and advice? Sniffing around for pet-related information in Connecticut? Get Unleashed - the blog that’s helping to find homes for people and pets.

The Association of Connecticut Fairs

Tis’ the Season for Fairs in Connecticut

Jessica — Thu, 13 Aug 2009 19:08:55 +0000

Around this time of year, I begin to crave apple fritters and fried dough (with red sauce, of course). Although it seems like summer just arrived, fall is right around the corner and nothing is better than all the fairs and festivals in Connecticut celebrating our local agriculture - where one finds apple fritters and fried dough, among other things.

I missed the Lebanon Country Fair last weekend but there are so many more. Click the link below for a full list and map of Connecticut’s fairs for 2009.

New Appraisal Standards Complicate Real Estate Market

Connecticut Real Estate Reality Check - Five Trends Driving Today’s Real Estate Market

Jessica — Wed, 05 Aug 2009 18:36:07 +0000

One of my favorite movies is Moonstruck. I especially like the scene where Cher slaps Nicholas Cage, yelling “Snap out of it!”

This post is one big collective slap to myself, home buyers, home sellers, fellow Realtors and just about everyone else. Snap out of it. What you know of the real estate market or think you know has changed.

I count five trends that are shaping the real estate market in Hartford County Connecticut today.

Longer Waits for FHA/CHFA Mortgage Commitments

In 2005, FHA (and VA) insured mortgages were only 6.8% of the total number of mortgage applications. In 2009, that percentage is nearly 36%, according to the Mortgage Bankers Association. It only makes sense that with such an increase in demand, home buyers and sellers should expect a longer waiting time to obtain mortgage commitment. On average and according to the mortgage lenders I work with, expect a 4-week waiting period from the time of mortgage application to get mortgage commitment. Add an extra week to that wait if the buyer is using CHFA.

That’s longer than it used to take - you used to be able to close within 30 days of writing a real estate purchase contract. Expect 45 days to close. Plan accordingly.

Expect Appraisals to Be a Barrier to Home Buying and Selling

Only in effect since May 1, 2009, the new HVCC rules affecting Fannie Mae and Freddie Mac mortgages (not FHA/VA) are causing problems. Delays. Higher fees. Botched appraisals. All of this can lead to contracts falling apart. Expect it and try to mitigate any issues. The Chicago Tribune has a great article which recommends, for example, that home sellers be present during an appraisal, offer the appraiser a list of improvements, and discuss with the appraiser what constitutes a comparable home.

A Pre-qualification Letter is Not Good Enough

I’ve never thought a pre-qualification letter was good enough for my home buyers or for my home sellers. But especially today, it amazes me how many agents still present offers with just a pre-qualification.

What’s the difference? Specifics - a good pre-approval letter will note most or all of the following: the borrower’s credit or credit worthiness, property address, mortgage amount, rate, down payment, type of mortgage, and what the lender has reviewed prior to issuing the letter (pay stubs, w-2s, etc). Without this information, a buyer cannot know for sure what they can afford and a seller cannot be as certain as possible that the buyer will qualify for their mortgage.

Buyers Are Nervous About Overpaying

When home buyers are nervous about overpaying for a home, they do several things: they write offers for far less than the list price (and sometimes less than comparable sales), they ask for a lot of repairs and they write multiple offers looking for a seller who’s willing to make a deal. They’re also quick to withdraw an offer at the slightest sign of negotiation. Who can blame them?

Your House May Just Be The “House of the Moment”

The strangest thing I’ve noticed is that some houses receive multiple offers and others don’t. There seems to be no rhyme or reason. One agent I spoke with called it “the house of the moment” syndrome. A home can be on the market for months and all of a sudden, buyers descend upon it all at once. Why? Other homes in comparable neighborhoods, condition and price just sit while one house gets three or four offers.

If I could use only one word to describe today’s real estate market, it would be “complicated.”

You may also enjoy reading:

Don’t List Your Home on Monday…If You Want to Stand Out in Greater Hartford Real Estate Market

Do you dig real estate news, tips and advice? Sniffing around for pet-related information in Connecticut?

Get Unleashed - the blog that’s helping to find homes for people and pets.

Is That Condo FHA or CHFA Approved?

Jessica — Tue, 21 Jul 2009 17:44:51 +0000

Today, FHA financing accounts for approximately 1/3 of all new mortgage applications (according to Mortgage Bankers Association).

If you’re a buyer looking to purchase a condominium and you plan to use FHA or CHFA (and VA) financing, then the prospective condominium complex must be approved by FHA (if you’re going CHFA, the complex must be approved by both FHA and CHFA).

Thankfully, it’s pretty easy to find out.

FHA Approved Condos

CHFA Approved Condos - note that CHFA has additional restrictions so talk with your lender

If the complex is not on the FHA list, talk with your Realtor & lender about getting it approved. FHA has a process called “spot approval” for complexes not already on the approved list.

Motivaton Makes the Real Estate Market Go ‘Round

Hartford County Home Sales Up Slightly in June 2009

Jessica — Mon, 06 Jul 2009 11:51:47 +0000

In June 2009, the median sales price of single family homes in Hartford County Connecticut increased to $236,000 over May 2009.

Pending sales are also up in June to 1,431, an increase when compared to May 2009.

But in comparison to June 2004-2008, the number of closed sales for June is way down - there were almost half the number of sales in June 2009 as there were in June 2005.

Event though 2009’s real estate market is relatively slow (this turtle was kind enough to pose for me in my yard last week to use in this post), the number of homes on the market is low enough to make the real estate market fairly balanced.

From April - June 2009, there were 1,590 single family home sales in Hartford County or 530 sales per month. With 3,224 homes currently on the market, there is a 6 month supply of homes on the market or a balanced market - neither a seller’s nor buyer’s market.

However, there is a high number of pending sales that will likely not close which actually puts the months of inventory higher around 7-8 months. I’ll talk about this “hidden” inventory more this week.You may also enjoy reading:

Two Bedroom Homes Not Always Harder to Sell in Central CT

Do you dig real estate news, tips and advice? Sniffing around for pet-related information in Connecticut?

Get Unleashed - the blog that’s helping to find homes for people and pets.