What is a short sale and how does it benefit you in Orlando Florida?

What is a short sale and how does it benefit you here in Orlando?

If you’re thinking that question about yourself… great question!

In this article we’ll dive into that question so you as a Orlando Florida home owner can tell what your options are during foreclosure or just if your home mortgage is underwater.

What is a Short Sale and How Does it Benefit You?

A short sale can be a smart way to mitigate foreclosure (here’s a great definition of what a foreclosure is in case you’re not sure) on a mortgage, although they can be difficult to attain in today’s market, they often prove to be a simpler way to resolve any debt left over from a loan.

Short sales were really common in the market a couple years back when the flood of foreclosures hit the Orlando market… but as foreclosures have slowed down and home values have climbed back up a bit… lenders are a little less likely to offer a short sale as an option as they used to be (but they are still doing a lot of them!).

Here are a few reasons you may want to consider short sale on your Orlando hom

You Avoid Foreclosure And The Harmful Effects Of It

The best benefit of short sale is that you avoid a foreclosure on your home. Your mortgage lender accepts less than what is owed on your mortgage, leaving you without the debt that you cannot afford.

Foreclosure can lead to all kinds of financial problems, starting with the inability to obtain a new loan for a home because a foreclosure stays on your credit record usually for up to 7 years.

Even renting will become more difficult as your credit score would be affected, and you often have to disclose a foreclosure on a rental application. Foreclosures can also last a long time (up to 7 years as mentioned above), making you wait years to even qualify for a new mortgage.

Credit Worries

With a foreclosure, you face all kinds of ramifications with your credit. Buying a car and renting a house may be impossible through the normal bank loan routes.

If you work with money at your job you could even face termination if your employer puts a lot of stock in that kind of thing (most employers won’t but it has been done before).

A short sale relieves the debt that is left over from what is owed on the mortgage, letting both the bank and the seller move on. A short sale is also easier on your credit score, which can allow a homeowner the ability to recover in the long run. Your credit report will only show a pre-foreclosure status, which reduces your credit rating minimally compared to a foreclosure.

Buying a New House

A foreclosure can last for a long time, making it impossible to purchase a mortgage again for up to 7 years.

Short sales offer a little more flexibility for the seller, allowing new home applications only 2 years after the filing depending on the bank. It also makes a mortgage lender more likely to approve your loan than if you had a full foreclosure, getting you back into a home faster.

Again, this all depends on the actual bank / lender you’re working with… so if they’re giving you a hard time a year or two after a short sale… shop around and find another bank to work with.

Usually No Fees Involved

One potential benefit of the short sale is there are usually no fees associated with the process from the bank.  The banks just want to get the note off of their books… and if it can be proven that your house is “underwater” (you owe more than your house is worth)… and you’re at the risk of walking away from the house… the bank may rather work out a short sale instead of going through a costly foreclosure.

With a foreclosure, your mortgage lender may tack on extra fees that only make the damage worse.

Some real estate consultants may charge a fee for helping facilitate the foreclosure with your bank… so check with them before you enlist a real estate agent or firm in helping you with this.

Our company, Eugene Hoffman LLC may be able to guide you in the right direction on how to give yourself the best shot at a bank approving a short sale with your Orlando area house… so connect with us by calling (407) 781-7312 or shoot an email to us through our contact page here.

Getting a Short Sale – What You May Need To Provide

You will have to provide the bank with proof of being unable to pay your mortgage payments. This can be difficult and is best resolved by finding a good real estate attorney in your area that has experience dealing in this type of law.

If you don’t know who to contact or where to turn to see if a short sale may be a good option for you… get a hold of us.

We won’t charge a thing to discuss your situation with you and let you know your options.

And we can even give you guidance and pointers at absolutely no cost or obligation.

Sometimes we’re actually able to do the work for you or even buy the house from you to get you out from under that mortgage… so that may be a viable option for you.

We buy Orlando houses and we work with home sellers like yourself who are having troubles getting out of your house the traditional way… or who can’t (or don’t want to) go the usual route of listing with an agent.

Get a hold of us anytime to discuss your situation. We’re here for you!

“Mortgage Demand Cools”: Fannie Mae | by Wolf Richter • Jun 26, 2017

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Home prices are “weighing on affordability and constraining sales.”

Here’s another piece of an incomplete behind-the-scenes puzzle of the housing market that has surged to new record highs. Fannie Mae — one of the Government Sponsored Enterprises (GSE) that guarantee eligible mortgages and package them into mortgage-backed securities that are then sold to institutional investors — had some disconcerting words in today’s Mortgage Lender Sentiment Survey for Q2:

More mortgage lenders say they have eased credit standards recently and expect further easing in the coming months.

Why? Cooling demand for mortgages. Mortgage lenders in the survey include banks of all sizes, specialized non-bank mortgage lenders (they don’t take deposits), and credit unions.

The net percentage of mortgage lenders that reported having eased credit standards over the past three months has been rising since Q4 2016. And the net percentage of lenders that expect to ease credit standards over the next three months for all three types of mortgages —  GSE eligible, non-GSE eligible, and government loans such as FHA and VA insured mortgages – “reached or surpassed survey highs this quarter.”

The chart below shows the net percentage of mortgage lenders who expect to loosen credit standard of GSE-eligible mortgages – the “conforming” mortgages that adhere to GSE underwriting guidelines, including loan limits:

The driver behind the loosening of mortgage standards? Lenders want to write more mortgages. That’s their business. But the business hasn’t been going all that well recently, just when home prices across the country, and in particular in certain cities, have surpassed prior bubble highs, and prudence would now be more important than ever. So what drives them to lower their standards?

Cooling demand for mortgages.

Lenders’ increasing concerns over “economic conditions” drove the easing of lending standards, as mortgage demand has taken a hit, and as the share of lenders who reported growth in purchase-mortgage demand “dropped to the lowest net reading in years.”

The report: “Across the three loan types, the share of lenders who reported growth in purchase mortgage demand dropped to the lowest net reading in years for a second-quarter period”:

Comments on why demand for mortgages was cooling differed by institution size:

• Larger Institutions: “Higher rates. Uncertain economic times” and “Competition.”
• Mid-sized Institutions: “Lack of inventory. We are an affiliated mortgage company and the lack of inventory in our markets effects our business directly.”
• Smaller Institutions: “Higher rates.” “Cost of housing.”

The report pointed out that this drop in demand for purchase mortgages confirms Fannie Mae’s report earlier in June that found that Americans were souring on the housing market, with the percentage of those thinking that now was a good time to buy a home dropping to a record low.

“Easing credit standards might also be due in part to increased pressure to compete for declining mortgage volume,” said Doug Duncan, senior VP and chief economist at Fannie Mae.

In face of declining demand, competition among mortgage lenders to write mortgages “heats up.” So they get more aggressive with their rates, which lowers their profit margins. And 71% of the lenders blame competition for their lower profit margin outlook, the highest percentage in the history of the survey and up from 44% a year ago:

Fannie Mae’s Duncan:

“Expectations to ease credit standards climbed to survey highpoints in the second quarter as more lenders reported slowing mortgage demand and increasing concerns about competition from other lenders.”

But the mortgage lenders remain an optimistic bunch in terms of home prices: 78% said that home prices over the next 12 months would rise, also a survey-high, with only 3% daring to think that home prices might go down over the next 12 months:

The report summarizes “Tight inventory has pushed up home prices, which is weighing on affordability and constraining sales.”

This survey is another piece of the puzzle of a housing market that has boomed in many cities beyond what is sustainable and affordable. Now the Fed has embarked on raising short-term yields and has brought them up one percentage point. Long-term yields continue to drop, and mortgage rates remain historically low. But the Fed is now also targeting long-term yields with its strategy of unwinding QE.

QE was designed, among other things, to bring down long-term yields and mortgage rates, and it did so successfully – hence the surge in home prices. Unwinding QE, including shedding the mortgage-backed securities now on the Fed’s balance sheet, will eventually have the opposite effect, just when home prices have surpassed the prior crazy bubble peak – in some cities by a big margin.

Using Psychology to Sell Your Home in Orlando | June 25, 2017 By Eugene

www.eugenehoffman.com/blog

When you’re getting ready to sell your Orlando property, you’ll want to make sure you have everything working in your favor. Depending on your neighborhood, there might be several similar houses on the market, all with similar amenities. If you want to sell your house quickly, it has to stand out and feel special.

In this blog, we will give you…

5 Clever Tips That Use Psychology to Sell Your Home Fast!

1. The Numbers Matter

Do your homework, and know exactly what your home is worth. Setting a specific price will show prospective buyers that you know what you are talking about, and have invested in maintaining the quality of the home. Round numbers can make it seem like you have no idea what you’re doing. “$150k? That sounds about right!”  If you and your agent conclude that your home is worth $196k, you might want to ask $206k.

In addition, avoid listing something using a whole mess of 9’s. “Our home is $299,999.99!.” People see through this and can make you seem gimmicky. This isn’t what people are looking for when making such a large purchase.

2. Engage the Senses

But not TOO much. Make people have that “WOW” feeling the minute they walk in the door.

You don’t need to burn your basil, rain, lavender blend incense. But you do want to make sure there is a light and pleasant smell throughout. People love the smell of a freshly cleaned home. Don’t go crazy with the bleach, but rather use something citrus or pine scented. These aromas are universally appealing, just don’t let them become overpowering.

As far as what people hear, keep music mild and low. Everyone has different taste, and you don’t want to subconsciously make buyers want to leave the room.  Let the light in.

And always…. always, let the light in. Open the curtains, the blinds and turn on a light if you have to. Dark and shadowy places are often ignored.

3. Don’t Get Too Personal

Put away your vacation pictures and clean the paperwork off your desk. People don’t want to feel as if they are “intruding” on your space. Making them feel uncomfortable right from the get go, isn’t the best way to sell. You want to find the balance of making the house feel “homey” without feeling too specific. Think about a catalog shoot when you are staging. You don’t have to go overboard, but include some pieces of interest that aren’t excessively powerful. This will allow people to imagine themselves in the space, so make it warm and inviting.

This will also make the selling process easier for you. Putting your personal effects away will give you a headstart in leaving the place you’ve called home. Being emotionally ready to sell will make the whole process less stressful.

4. Throw a Party

It’s likely that the people coming to your open house have been to a few others just like it. Do something different, and have your open house in the evening or on a Sunday for a BBQ and a football game. This will bring in a whole new crowd and will definitely make your house stand out above the rest. If you show people a good time, they will be able to envision themselves living in the home, and enjoying it just as much as you do.

5. Love at First Sight

People decide if they are going to buy within the first few seconds of seeing your home. It is up to you to make those first few seconds count. Of course, there are always exceptions to this rule, but first impressions go a long way. If your yard is overgrown or messy, people aren’t going to feel a welcoming vibe. Make sure your yard is well groomed and take care of some easy cosmetic fixes. (New house numbers, a mailbox refresh or some paint touch-ups.)

You will also want to give some attention to your entry area and the places people see upon walking in. Add some flowers and make sure the lighting is on point. Don’t leave clutter around as this is often the place where shoes, backpacks and other miscellaneous items pile up.

About We Can Buy Cash

-AA+A The Right Way to Approach FSBOs | JUNE 2017 | BY JARED JAMES

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The vast majority of unrepresented sellers will eventually list with an agent. Whether you are the agent they choose depends on how you present your real estate services.

JUNE 2017 | BY JARED JAMES

Eighty-nine percent of sellers work with a real estate agent to sell their home, according to the National Association of REALTORS®’ 2016 Profile of Home Buyers and Sellers. That should tell you what kind of opportunity there is to convert FSBOs, which made up only 8 percent of total home sales in 2016. The majority of homeowners who try to sell on their own eventually realize they don’t know how to handle a sale by themselves, and they turn to you for help.

But even though the FSBO market is ripe for conversion, real estate professionals struggle to get these potential sellers to work with them. The reason is simple: We’ve been taught to lie to these sellers from the very beginning of the relationship.

When someone is resistant to working with you and you want to change their mind, you first have to figure out what’s driving their resistance and then solve that problem in a practical manner. There’s only one reason sellers would decide to sell on their own rather than work with an agent: money! They need to make a certain amount of profit and don’t want to pay a commission, or something along those lines.Well, the average FSBO property sells for more than 20 percent less than comparable homes that are listed by an agent, according to the NAR report. So going it alone doesn’t actually get FSBOs what they want. But that can’t be your first argument when trying to convert a FSBO; it comes off as combative, and you’ll lose them.

When a FSBO is talking to an agent, they want to know one thing: Do you have a buyer for my property? If you’ve taken any training in our industry, you’ve probably been taught to say yes. But how in the world do you know if you have a buyer for a property before you’ve even started marketing it? FSBOs understand this conundrum you’re in, so if you say yes, they know you’re lying. And you’ve just lost credibility with them before you’ve even gotten started.

Here’s what needs to change going forward.

The next time a FSBO asks if you have a buyer, simply answer: “I might, but I wouldn’t know without seeing your property first. I work with many buyers, and as an expert in this area, I pride myself on knowing the inventory, which includes your property. It turns out I’m going to be in your neighborhood tomorrow. Would you be offended if I stopped by to take a quick look to see if your house meets the needs of any of my current or future buyers?”

Any serious seller is going to let you see the house if it means that you might be able to bring it to the attention of motivated buyers. Once you see the FSBO’s house, it’s important not to sell them on listing with you unless they approach the subject. The point of your walkthrough is not to land a listing; it’s to build rapport and know your inventory. Remember, 89 percent of FSBOs end up using an agent. It’s just a matter of whether it’s going to be you. I can guarantee it won’t be if you lie to them or try to sell them when they aren’t ready to be sold.

After the walkthrough comes the most important question of all. Tell the FSBO that you will mention the house to some of your buyers who may be interested. Then say, “Regardless of whether my buyers are interested, you need to be aware of other listings in your neighborhood that are competing for buyers so you know what you’re up against. As an agent, I typically find out about new listings and other properties before the public does. Would it be OK if, from time to time when a property comes up that I think competes with yours, I contact you and let you know about it so you aren’t caught off guard?” Any serious seller will welcome having access to this kind of free information.

By getting a “yes” to that question, you just got permission to follow up regularly. The next step is to set weekly or biweekly reminders to search for new comps and reach out to the FSBO with market updates. When you call to let them know about new comps, you still should avoid trying to sell them on listing with you. Just educate them and see if they have any questions. By now, they’ll see your expertise and get comfortable enough to choose you once they make the decision to work with an agent.

-AA+A 10 Biggest Threats Facing Real Estate | written by Realtor Magazine

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10 Biggest Threats Facing Real Estate

DAILY REAL ESTATE NEWS | FRIDAY, JUNE 16, 2017

Global uncertainty and political polarization are the top issues facing the housing industry in 2017 and 2018, according to The Counselors of Real Estate’s annual list of the Top 10 Issues Affecting Real Estate. The list was compiled using feedback from 1,100 real estate advisers from around the world who met at a recent CRE conference.

Many of the issues are interconnected and reflect disruption in the economy and multiple real estate sectors, says 2017 CRE Chairman Scott Muldavin. “Despite this unsettling environment, opportunity remains embedded in every issue on the list,” the CRE report notes. Here are the top 10 issues cited in the report.

1. Political polarization and global uncertainty. “Uncertainty about changes to trade, travel, and immigration policy threaten cross-border investing, hospitality properties, retail, and manufacturing supply chains, among other effects,” the report notes. “Rising interest rates and retail inflation will make middle-class homeownership that much more difficult. Longer-term implications could be much more severe, as polarization prevents long-term fixes to issues such as infrastructure, affordable housing, local and state pension liabilities, and education.”

2. The technology boom. An unprecedented wave of commercial real estate technology innovations are expected to change the way real estate is bought, sold, and managed. Investments in commercial real estate tech startups hit $2.7 billion in 2016. About 1,600 of these startups now exist worldwide. Robots, big data, autonomous vehicles, and online retail are also expected to have a major impact.

3. Generational disruption. “Boomers’ and millennials’ divergent views of where they live, work, and play increasingly impact the property markets,” the report notes. “The generations are crossing paths everywhere: in the workplace, in housing, and at the local bar and grill, intersecting and sharing spaces despite their often disparate priorities when it comes to the built environment.”

4. Retail disruption. “The trend toward transforming retail into ‘experiences’ continues to develop and is offsetting shrinkage in the physical bricks-and-mortar consumer-goods platform,” the report says. “‘Experiential’ retail drives customer traffic to a more diverse and highly participatory environment targeted to a variety of age groups and interests. This sector has transitioned into a kind of ‘Omni Channel’—encompassing e-commerce, reduced or repurposed physical elements, and a host of previously unforeseen spaces, both physical and virtual—with a current emphasis evolved from bricks-and-mortar shopping to the timely, efficient transfer of goods from source to inventory to consumer.”

5. Infrastructure investment. The private sector is directing significant funds to infrastructure projects, recognizing the need and long-term rewards of investing in roads, bridges, tunnels, ports, and airports. Investors now oversee $376 billion in U.S. infrastructure dollars. “It is clear that the need for infrastructure investment is critical,” the report says. “The movement of goods, which involves everything from ports to airports to warehouses to roads, highways and railroads, is further straining an aging and highly vulnerable interior framework. Add to this the need for pipelines, electricity transmission, and water distribution, and the immediacy of infrastructure needs becomes even more pronounced.”

6. Housing disparity. “Safe, decent, affordable housing has been shown to have a stabilizing effect on urban economies, crime, and public health,” according to the report. “A current lack of inventory has generated a spike in home prices and, as a result, declining affordability for many home buyers, particularly those in lower-income sectors.  A critical disparity exists between housing needs and housing supply.” The report cites a growing affordability gap and limited availability of housing in locations with significant job growth, such as major cities and coastal regions.

7. Threats to the middle class. In 2007, the average middle-class income was $57,403. Now it hovers below inflation-adjusted levels from nearly two decades ago at $57,909. These income levels have yet to return to their pre-recession highs, and stagnant income growth will continue to press on the middle class.

8. Emerging role of healthcare in real estate. The nation spends more than $3 trillion each year on healthcare costs—about $10,000 per person—which is double the average for developed countries worldwide. “The real estate industry has emerged as a major player to cost-effectively improve people’s health,” the report notes. “Building occupants are increasingly demanding that the space they inhabit be designed, constructed, and operated in ways that advance positive health outcomes.” A growing focus on healthy buildings is emerging, as people spend about 90 percent of their time indoors. Research from the Mayo Clinic shows that healthcare contributes 20 percent to maintaining people’s health, while environmental and behavioral factors account for 40 percent. 

9. Immigration. As the Trump administration seeks to enact more restrictive immigration laws, some housing leaders are growing concerned about labor shortages in homebuilding. Demographers note that immigrant groups are a source of household formation. “New immigrants tend to rent, boosting demand for multifamily housing, especially in gateway cities,” according to the report. “Recent surveys suggest that immigrant populations aspire to own homes and to move relatively freely from cities to suburbs and back in the search for employment. Labor mobility and homeownership rates will be constrained by limiting immigration.”

10. Climate change. The National Oceanic and Atmospheric Administration released a report this year that shows sea level rises are expected to more than double from 2013 forecasts—to between 6.6 and 8.6 feet by 2100. “While a potential rise of sea level may seem far in the future, NOAA also estimates that annual frequencies of disruptive and damaging flooding would increase 25-fold with only a 14-inch increase in local sea level rise,” according to the report. “Major cities such as Miami, New York, New Orleans, Tampa, and Boston are projected to have the most costly problems, with South Florida and most coastal areas all exposed to differing levels of sea rise risk and cost. The implications of potential sea level rise and related flooding on real estate values is positioned to explode due to dramatic increases in the volume and accessibility of information on the consequences of sea rise.”

5 Questions Real Estate Investors Need To Ask When Selecting a Lender in Florida

June 20, 2017

By Eugene

About our company

Selecting a lender can be a difficult process if you don’t know the right questions to ask. This article features 5 questions to ask when looking for the lender in Florida who is right for you!

While the process might seem arduous, you must remember that you have the upper hand. There are a variety of lending choices available, and in theory, these lenders are competing to have you as a customer. In today’s market there is more money than deals. There are plenty of lenders.

As an investor looking for a lender, your process might be different than someone looking for a traditional mortgage of a home they plan to reside in. Here are a few great questions to help you in your search. A great place to look in Orlando is Central Fl Investor’s Club.

What are Your Terms, and Are There Additional Fees?

You will obviously want to know the interest rate, the LTV (Loan to Value) and the number of points you will be paying. In addition, you should always ask if there will be additional fees. These can be legal fees, underwriting fees, administrative fees, etc. Learn about fees they are always expensive.

These fees can greatly impact your profits if they are not accounted for from the beginning. Make sure you are of any prepayment penalties you might be charged as well.

Do You Have Property Criteria That Must Be Met?

Geographic boundaries, as well as limitations on the type of property you are able to purchase, might be put in place by the lender. Make sure you fully understand what types of properties the lender will allow you to buy.

If you are looking for a two bedroom, fix and flip, but the lender requires 3 bedrooms and a price point of 250k+, you might be out of luck.

Do You Provide Funds For Rehab?

In many cases, a real estate investor will need to make some repairs. Will you have to pay for this out of pocket? Or will your lender provide funds for rehab and upgrades?

This is important to know when you are looking at potential properties for investment. While the ability to borrow more money to fix up the home might seem appealing, make sure the value is there as you will be paying additional interest on these funds.

Does Your Company Flip The Loans After They Are Originated?

Many companies will sell the loan to a 3rd party after the loan has been originated. This means that there is a possibility that you will be working with a yet to be determined 3rd party. If they flip the loans, you will be making payments and working with a different company once your loan has been processed.

What is Your Experience With Loans Like This?

Someone who is familiar with what you are doing and who see’s what a good deal you are making, is more likely to provide you with better terms. They will see the loan as low risk, and be able to help you maximize your profits.

As with any decision in real estate, it important to know all of your options and shop around. Remember to ask questions about ANYTHING you are uncertain about.

How to Set Your Home Apart to Sell Easier in Orlando

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Are you thinking about selling your Orlando home? Most likely, you are going to have some competition. It may require a little work, but in the long run, a little work can get your house sold fast! We Buy Houses has put together some great tips on how to set your home apart when you are ready to sell in Orlando. 

Address The Senses

Subconsciously, potential buyers will use all five senses in their decision on whether or not to make an offer on your home. Obviously, you will want the visual appearance to be impressive, but you will also want to think about what these potential buyers will hear, smell, taste and touch.

• What they hear… play background music during open houses. If you live in a younger, trendy neighborhood, play something more current. If it is an older neighborhood, classical, big band and the standards can be a great choice.
• What they smell… you don’t want to overpower your home in fragrances. Some people can be sensitive to smells, and you don’t want to drive anyone away before they get to see your home. With that in mind, consider fragrances that are universally appealing. Everyone loves freshly baked bread or chocolate chip cookies. Or if you choose to use a candle or incense, keep in light and with a mild fragrance. Vanilla or Citrus are popular choices that won’t be too harsh on your guest’s noses.
• What they taste… as mentioned above, the smell of cookies or fresh bread is universally enticing. Maybe you coincidentally have some cookies baking along with some other light but delicious hors d’oeuvres. People may not remember the color of your crown molding, but they will remember the best brownie they ever ate.
• What they touch… your potential buyers may not physically touch many items in the home, but the things they do touch should feel great. Think of the door knobs, handles on cabinets, glasses, and faucet handles. These things should have a “good feel to them.” In addition, use a fluffy, luxurious throw blanket on the sofa. Add over-sized feathered pillows to the bed, making it look beyond comfortable. Think of the touches you would find in a high-end hotel, and incorporate these things into your home.

Make it A Party Instead of Another Boring Open House

So many open houses are all the same. And the odds are, your potential buyers have been to a few of these already. Consider making it more of a BBQ by hosting it in the afternoon or cocktail party by hosting it in the evening. This will not only be memorable to your guests, but it will allow them to get a sense of what living in the home will really feel like.

Entertaining friends, serving great food and creating so much fun within the home, that people don’t want to leave is a great way to sell your Orlando home fast!

Focus on Your Curb Appeal

The exterior of your house will determine whether or not people even walk into your home. You’ve likely heard the phrase, “don’t judge a book by its cover,” but when it comes to home buying, this is often the case. This is your first impression and the first opportunity to make buyers fall in love with your home.

• Mow the lawn, weed the garden and keep it regularly maintained.
• Paint if necessary. By doing the work yourself, you will save a ton of money and completely revitalize a worn out facade.
• Repair cracked sidewalks and porches and tend to any boards that may have popped up.
• Make sure the furniture is clean, rust free and flows with the exterior of the home.
• Fix your fixtures. Mailbox, door knobs, address numbers should all look clean and bold.

Don’t Take It Personal…

Yes, you want to make your home feel like a home…inviting and cozy. But if people come face to face with your Grand Canyon vacation pictures on the fridge, or see a stack of your paperwork on the desk, they are going to feel as if they are intruding. Pick up the clutter and personal items and hide it all away while buyers are in your home.

Harvard researchers say one-third of Americans overpay for housing | By Business Insider

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Paychecks across the US are being forked over to landlords.

One in four renters spends more than half their income on housing, according to the 2017 State of the Nation's Housing report, published by the Joint Center for Housing Studies of Harvard University. Almost half pay over 30% of their incomes on rent.

In total, between renters and owners, nearly 39 million American households — 33% — are paying more than they can afford for their homes.

The standard measure of housing affordability — 30% or less of pre-tax income — has been in place for 80 years, since the United States National Housing Act of 1937 was passed, establishing public housing assistance for low-income families.

But affordable housing is still difficult to find, for low-income as well as moderate-income renters. The typical renter earns $37,900 a year, which means a maximum rent of $950 a month would be considered affordable under the 30% rule. 

Business Insider/Andy Kiersz, data from Harvard Joint Center for Housing Studies

Between 2005 and 2015, 1.5 million rental units with rents above $2,000 a month were added to the market, while rentals costing less than $800 a month declined. The number of available rentals in the US hit a 30-year-low in 2016, causing rental prices to rise faster than inflation in most areas, according to the report. 

"The problem is most acute for renters. More than 11 million renter households paid more than half their incomes for housing in 2015, leaving little room to pay for life's other necessities," Chris Herbert, the Center's managing director, said in a press release.

Still, homeownership is the norm in the US, with approximately two-thirds of American households owning rather than renting. Among homeowners, 10%, or 7.6 million, spent more than half their household income on their mortgage. The typical homeowner earns $70,800 a year, according to the report. 

There is one bright side, however. The report found that incomes inched up slightly from the previous year, moving a few households on the cusp of affordability under the 30% benchmark.

SEE ALSO: RANKED: 13 major cities where renting a home is the most unaffordable

DON'T MISS: This flowchart could help you decide whether to buy or rent a home

NOW WATCH: The best and worst months to rent an apartment in major US cities

4 Staging Tips To Help You Sell Fast in Orlando

eugenehoffman.com

Properly staging your house for sale is key when you are trying to sell your house in Orlando. Many people think this will cost a fortune on decorations and upgrades, but there are many ways to do this without breaking the bank.With a little time and effort, you can get your home stand out and look truly beautiful. We’ve put together some of the best staging tips to help you sell fast!

With a little time and effort, you can make your home stand out and look truly beautiful.

We’ve put together some of the best staging tips to help you sell fast!

Hide The Clutter & Personal Items.

You want the house to look like a “home” but people don’t want to see your laundry in the washer. In addition, too many personal items can make prospective buyers feel as if they are intruding.

Limit photographs and other very personal items like backpacks, paperwork, and purses, and instead put out some books, flowers or other interesting items. Make them feel as if it could be their home the moment they walk in the door.

You want them to feel immediately comfortable, as if it were somewhere they could see themselves living.

Appeal To All The Senses.

When someone comes to your house for a showing, it’s about more than what they see with their eyes. Emotional cues play a big role in how people will see your home.

Consider playing some music softly in the background. Or maybe have a candle burning that smells like freshly baked cookies or clean linens. Have a soft and cozy blanket folded up nicely on the couch.Doing these things will make your home feel cozy, and encourage buyers to stick around for awhile. Possibly making you an offer!

Doing these things will make your home feel cozy, and encourage buyers to stick around for awhile. Possibly making you an offer!

Give Each Room a Purpose.

Do you have a space that is used for many things? Clean it up, and make it appear as if it only has one focus.

For example, a guest room/office can subconsciously make the homebuyer feel as if the home is cramped and lacking enough space.

Instead, make it very clear that the room is a guest bedroom OR an office. If you have an unutilized space, consider making it something fun like a game room or library.Even if it’s not really how you use the home, creating the definition of spaces will make the buyer feel less confused about the spaces they are woking with and allow them to more easily imagine themselves living there.

Even if it’s not really how you use the home, creating the definition of spaces will make the buyer feel less confused about the spaces they are woking with and allow them to more easily imagine themselves living there.

Spend a Day Deep Cleaning and Making Small Repairs.

Do you have a crooked shelf? Or a squeaky step? Maybe a leaky faucet? You might have small fixes you can make by yourself for a reasonable cost.

Some small touch-ups to paint, dings in the wall or a power wash to the driveway can really alter the appearance of the home to your prospective buyers.

Now is also the time to wipe down the baseboards, rake the leaves and get those stains out of the carpet. Remember, they will be looking in every corner of your house as they walk through.

Don’t let them get so caught up looking at a wobbly fan, that they miss the beauty of your breakfast nook. You will probably find things to repair you hadn’t even noticed before!

About Eugene Hoffman

TAX REFORM TO IMPACT FACTORS RELATED TO HOME VALUES, HOMEOWNERSHIP

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Realtor Magazine Full Article

What is the potential implication of tax reform on homeownership? To find answers, the National Association of REALTORS® commissioned a study to review the impact of comprehensive tax reform.

The result offers the implications of tax reform that would lower and consolidate marginal tax rates to three rates with a top rate of 33 percent, double the standard deduction, eliminate all itemized deductions other than charitable contributions and mortgage interest, eliminate personal exemptions and the Alternative Minimum Tax, and cap the tax rate on pass-through business income at 25 percent. The following are highlights of the report.

Read the entire report

Mortgage Interest Under Current Law

• A projected 35.4 million households will claim itemized deductions of $359 billion for mortgage interest in 2018. Almost threequarters of them (25.3 million) have incomes between $50,000 and $200,000.

State and Local Property Tax Deduction

• In 2018, an estimated 40.7 million taxpayers will report itemized deductions for property taxes of $206 billion. Seventy percent of the taxpayers claiming this deduction are estimated to have adjusted gross income (AGI) between $50,000 and $200,000.

Overall Impact of Tax Reform

• Overall, the reform proposal would decrease federal revenues by $1.1 trillion over the 2018 to 2027 period.

• Tax expenditures associated with homeownership (the amount of foregone revenues from the mortgage interest and property tax deductions) would drop by 82 percent or almost $1.1 trillion over fiscal years 2018-2027.

Distributional Impact of Tax Reform

• Taxpayers (including both homeowners and nonhomeowners) with AGI between $75,000 and $250,000 would on average pay higher income taxes, while all other income categories would on average enjoy tax reductions.
• Homeowners with AGI between $50,000 and $200,000 would see an average tax increase of $815.
• Non-homeowners with AGI in the same range would see an average tax reduction of $516.
• Taxpayers with AGI under $50,000 would see average tax reductions of under $100.
• Taxpayers with AGI over $200,000 would see average tax decreases of over $15,000.

Impact of Tax Reform on Housing Prices

Comprehensive tax reform will impact the demand for owner-occupied housing by reducing the number of homeowners who claim the mortgage interest deduction, eliminating the itemized deduction for property taxes, and decreasing marginal tax rates.

• The after-tax cost of homeownership will increase while the opportunity cost of home equity (relative to alternative investments) will rise. These factors will lead to a decline in housing prices in the short run, as housing becomes a less attractive investment.

• Home prices in the short run would fall by an overall average of 10.2 percent because of the comprehensive tax reform. The price impacts in specific localities will vary based on local conditions. The report found decreases between 8-12 percent based on alternative assumptions for local conditions.

April 2017 Housing Affordability Index | by Michael Hyman

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At the national level, housing affordability is down from last month and down from a year ago. Mortgage rates increased to 4.11 percent this April, up compared to 3.89 percent a year ago.

• Housing affordability declined from a year ago in April moving the index down 6.0 percent from 166.1 to 156.2. The median sales price for a single family home sold in April in the US was $246,100 up 6.1 percent from a year ago.
• Nationally, mortgage rates were up 22 basis point from one year ago (one percentage point equals 100 basis points) while incomes rose 2.4 percent.
• Regionally, the Midwest had the biggest increase in price at 7.8 percent. The South had an increase of 7.7 percent while the West had a 6.9 percent gain in price. The Northeast had the smallest incline in price of 1.1 percent.
• Regionally, all four regions saw a decline in affordability from a year ago. The Midwest had the biggest decline of 7.9 percent. The South followed with a decline of 7.5 percent. The West had a decline of 7.3 while the Northeast had the smallest decline of 2.1 percent.
• By region, affordability is down from last month except in the Northeast where there was a modest increase of 0.6 percent. The Midwest had the biggest decline of 4.0 percent followed by the South who had a decline of 1.2 percent. The West had the smallest decline in affordability of 0.9 percent.
• Despite month-to-month changes, the most affordable region is the Midwest where the index is 193.7.  The least affordable region remains the West where the index is 111.8.  For comparison, the index is 155.9 in the South, and 162.9 in the Northeast.
• Mortgage applications are currently up this week. Even though rates are higher from a year ago, they are still lower than they have been all year.
• What does housing affordability look like in your market? View the full data release here.
• The Housing Affordability Index calculation assumes a 20 percent down payment and a 25 percent qualifying ratio (principal and interest payment to income). See further details on the methodology and assumptions behind the calculation here.

4 Ways to Get a Private Money Loan with Bad Credit in Florida

About Eugene Hoffman

So you’re ready to buy some real estate. That’s wonderful! In most cases, you will need to secure financing for your purchase. But how do you get a private money loan with bad credit?

Before you begin to feel defeated, learn about the different ways you can get a hard money loan, even if your credit score isn’t where you want it to be. 

First thing is first…. Check Yourself!

Before you apply for a line of credit, you’ll want to know exactly what your credit report looks like. If there are some things you can clear up quickly, do so.

A couple of small collection items can take a huge toll on your credit and significantly decrease the amount you are able to borrow. Paying a small amount up front can help you borrow a greater amount in the long run. Sometimes you may find an error on your credit report that can reduce your score.

Ensure accounts that have been paid off are reflected as such in your report and are not listed as outstanding. Once you’ve gotten your credit buttoned up, you can begin thinking about different options for getting a loan.

1. Call Your Bank

Aside from yourself and maybe a significant other, nobody knows more about your finances and your ability to pay back a loan, more than your bank. Your bank has intimate knowledge of your spending habits, your average balances, the number of times you’ve had an overdraft, and they can base your loan off of these factors in addition to your credit score.

If you have a positive banking history, but low credit due to one mistake or difficult situation, your bank will see this. Find out what your bank can do for you before looking at other sources.

2. Peer to Peer Lending

An option many people never even consider is peer-to-peer lending. Online services and big data come together to help connect investors and borrowers. Companies such as Prosper and Lending Club allow borrowers to receive funds without the use of an official lending institution.

This makes the process of getting your funds fast and simple. Fees are minimal and many other factors aside from credit are looked at when determining your rates and credit limit.

3. A Loan From Family or Friends

This can turn into a sticky situation if not done in a professional manner. If a friend or family member agrees to help you with a loan, the process should be handled in a formal way. Specific terms of repayment need to be set, a loan agreement signed by both parties and all expectations need to clearly be stated in writing.

You can even go so far as reporting the loan to the credit bureaus, this will help you repair your credit in the long run. Be careful when borrowing from someone you are close to. You wouldn’t want a financial disagreement hurt a friendship or family relationship.

4. Find a Co-Signer

If you have a supportive friend of family member who wants to help but doesn’t have the cash to give you a loan directly, they might be willing to co-sign on a loan with you.

This is a risk for them, and could potentially destroy both of your credit scores should you default on the loan, and your co-signer isn’t able to pay. It is a responsibility not to be taken lightly and should only be done between two people who only have the highest amount of trust for one another.

In Conclusion…

Just because you have bad credit, doesn’t mean you won’t be able to get a loan. Explore the many alternative options available to you and do your homework before you apply for any loan.