To understand the terms, it’s important to understand the three stages of foreclosure:

1. Pre-foreclosure stage. This stage begins when the homeowner falls behind on home-loan payments (or sometimes other terms of the loan). Lenders may wait for a second, third or even fourth missed payment before sending the homeowner a Notice of Default — which becomes public record. The homeowner then has a given period of time to respond to the notice and/or come up with the outstanding payments and fees — sometimes by selling the home in a pre-foreclosure sale, also known as a distress sale. (If a judicial procedure is required, it occurs after the notice of default is given.)One type of pre-foreclosure or distress sale is a short sale — when proceeds from the sale of a home are less than the amount of mortgage still owed to the homeowner’s lender. A lender-approved short sale (or short payoff) occurs when the homeowner’s lender agrees to accept the proceeds of the home sale as satisfaction of the mortgage owed, even though proceeds are less than the outstanding debt.
2. Foreclosure stage. At this stage, the former homeowner may or may not have been evicted — depending on state law — when the lender puts the home up for public auction (after a judgment of foreclosure in those states requiring judicial procedure).If the home sells at the foreclosure auction, (sometimes called a sheriff’s sale, trustee’s sale or step sale) money from the sale is used to pay off the costs of the foreclosure, taxes and other prior liens, service charges and advances, interest and principal on the mortgage, late charges or fees, and liens recorded after the first mortgage. Any amount left over is paid to the borrower (former homeowner). When proceeds from the sale are less than the various amounts owed, the lender may be able to hold the borrower responsible for the difference (deficiency judgment).
3. Post-foreclosure stage. When a property that does not sell at auction — either because no one bid on it or because bids did not meet the lender’s or agency’s minimum price — the property becomes real estate owned (REO) by the lender or government agency that guaranteed the loan (such as FHA/HUD, VA, etc.). You’ll also hear the term bank-ownedapplied to these properties, whether they are owned by an actual bank or some other type of lender. (Be aware: The term REO also applies to properties purchased by companies from employees who didn’t sell their home on the market before relocating, which is to say that not all REOs are foreclosed properties.)Once the lender or agency has repossessed a property following a failed auction attempt, the home is put back on the market. Most REO properties are listed for sale through real estate brokers and placed on the Multiple Listing Service.

At this stage, the foreclosure process is complete, and the property may be accurately described as a foreclosed property, while in the first two stages the home is in foreclosure and should be referred to as a foreclosure property. (You’ll find, however, that real estate writers and others sometimes misuse this terminology; be sure to ask if you are unsure what stage of foreclosure a particular property is in.)

If you are thinking about buying a foreclosure, make sure that you go to the Register of Deeds and search the property for liens.  These are not posted online.  If there are liens on the property, you will be buying them as well.  To search foreclosures in the Wilmington NC area please visit http://www.cbbaker.com/idx/residential/search . To get guidance if you are close to being in a short sale situation, please visit http://www.cbbaker.com/foreclosureNew.php

We have a Certified Distressed Property Expert on our team. Call us and we would be glad to help.

65th NC Azalea Festival Wilmington NC 2012 | Wilmington NC real estate

 

 Join us for the 65th NC Azalea Festival in Wilmington NC.  Kenny Logins kicked off the festivities on Thursday night with a concert.   Scotty McCreery is headlining the concert tonight.

From the Azalea Festival Website -

“The North Carolina Azalea Festival is Wilmington’s annual community celebration and the largest festival of its kind in the state. Founded in 1948, the Azalea Festival has emerged as Wilmington’s premier event.

Each April, a full week of natural beauty, big-name entertainment, festive galas, fun family events and Southern hospitality come together to showcase the charms of the Wilmington area. For community pride and springtime pageantry, the North Carolina Azalea Festival has no equal!

The Festival’s concerts, fairs and special events are viewed by more than one million people each year, in person and through media coverage. More than 200,000 are estimated to attend the annual two-day street fair, while more than 100,000 gather to watch the Festival parade. Each event is a celebration, beginning with the traditional arrival of Queen Azalea at the official opening of the five-day event. Stars glitter throughout town as Southern belles and their escorts promenade through lush gardens at the annual garden party. Everywhere the blooming azaleas offer colorful testimony to the rich heritage of coastal Carolina.”

Here is a sampling of the schedule for this weeks festival from the festival website.

Show events for:| Friday | Saturday | Sunday

ERICA DUNLAP

 65th Azalea Queen

 

Circus
4/12/2012 – 4/15/2012
More information

Juried Art Show
4/13/2012 – 4/15/2012
More information

Cape Fear Garden Club Azalea Garden Tour
4/13/2012 – 4/15/2012
More information

Street Fair
4/13/2012 – 4/15/2012
More information

Visiting Ships
4/13/2012 – 4/15/2012
More information

Parade
4/14/2012
More information

Coin Show
4/14/2012 – 4/15/2012
More information

Boxing
4/14/2012 – 4/15/2012
More information

Historic Home Tour
4/14/2012 – 4/15/2012
More information

Street Fair Main Stage
4/14/2012 – 4/15/2012
More information

Street Fair Multicultural Stage

For more information please visit http://www.ncazaleafestival.org/default.asp

To look at real estate when you are in town, please feel free to visit www.cbbaker.com   Enjoy…. Kay Baker & Associates

Video of Wilmington NC Azalea Festival click on photo

 

Today’s housing market is challenging. That’s a given. It’s tough on buyers and sellers alike, who are anxious, not knowing where the real estate market is going next. They both want — and often need — a great deal whether they are buying or selling. Our current real estate market requires a special perspective no matter which side of the settlement table you are on. The rates inched up a bit last week, and the market has been hot.  If you have been waiting for interest rates to get better and home prices to fall, then you might get left out of the chance to buy.

Savvy buyers can readily find a lot to love in today’s market. Buyers feel the love from low interest rates and competitive prices to a huge selection of homes and incredible investment opportunities. Look past the national headlines — which are gloomy at best and don’t apply at worst — to our local real estate market. Here is where buyers benefit the most when the going is tough. Unless, of course, you wait and miss out.

Smart sellers, on the other hand, can benefit from a buyer’s market as well. Successful home sellers in today’s market know they must price their home correctly and be flexible. Providing a buyer with a great deal on their home opens the door for sellers to move on to their own next step — whether it’s moving up, downsizing or relocating. Smart sellers also know what they may give up on price, they can make up — and then some — on their next home purchase. That’s another bright side of today’s real estate market.

Take a moment to learn the seven reasons why it’s a great time to buy a home. And, be sure to contact us when you’re ready to make a move.

1. Loving Low Interest Rates
Historically low interest rates continue to allow home buyers to afford more home for their money. Lower interest rates reduce your monthly payment and increase your buying power. Locking in at a low, fixed-interest rate means your monthly loan payment will never change over the course of your loan.

2. Embracing Investment Property
Even if you’re not in the market to buy a primary residence, you should take a look at the properties available for sale as investments. With ever-increasing numbers of families looking to rent, it’s an opportune time to invest in a rental property. Being a landlord can be a rewarding experience when you find the perfect property.

3. Attractive Home Prices
Home prices have never looked better! Many sellers are motivated to get their homes sold and are pricing accordingly. Don’t be afraid to make an offer on a home or to work with us to negotiate a great price on a great home.

4. Wondrous Selection Of Homes
If your “needs and wants list” of home features can’t be contained, now is the time to be looking at homes. The selection available in our area is outstanding. No matter what your budget, family size or life stage, we can help you find the home that fits.

5. Digging Distressed Properties
Others’ foreclosures, bank-owned and short-sale properties can be the key to your next home. Don’t overlook distressed properties, as you may uncover a hidden gem priced right so you can make upgrades and improvements without breaking your budget. Distressed doesn’t always mean a steal, but it can often lead to a great deal.

6. Engaging Your Financial Options
If you’re tired of seeing your savings yo-yo in the volatile stock market, real estate is a great asset balancer. Consult your financial professional to make sure you have the savings to spare. When you’re ready, we can help you find great investment property or a home to buy for all-cash if you desire.

7. Winning Over Motivated Sellers
Successful sellers keep the market going. Homeowners are eager to sell their homes to buyers who make realistic offers. It’s a crowded market for sellers, but the ones who are motivated will offer a great price and may throw in incentives (e.g., helping with closing costs, etc.) or much-valued sweeteners — such as a home warranty — that are as good as cash.

8. Professional Partner
When you’re buying or selling a home, it’s difficult to go it alone. We can help you every step of the way when it comes to getting a great deal on a new home. Feel free to contact us anytime you’re ready to jump into our real estate market to buy or sell. We’d love to work with you!

1. Lower Rate.

One method is to seek out a lower interest rate for the balance of $175,500. By lowering the interest rate to 7%, but maintaining the current payment schedule (20 more years of payments in the above example) your payment would drop to about $1,361 and the loan would still be retired at the original 30-year mark.

2. Longer Term.

Another way to lower your payment would be to prolong the length of the amortization. For instance, by getting a new 30-year mortgage for $175,500 at the 10-year mark, your payment would drop to $1,167 (at 7%).

3. Cash Out.

Some homeowners pull equity out of their properties for home improvement, vacation, college costs, big-ticket purchases or to consolidate debt. Especially when interest rates are rising or stable, cashing-out is often the primary reason for refinancing.

4. Change Loan Type.

Other folks refinance in order to change the type of loan they are paying off. Some homeowners grow uncomfortable with the variability of adjustable-rate mortgages and would rather have a fixed-rate loan. Others need to reduce monthly expenses and choose an adjustable-rate loan to lower their payment.

5. Shorter Term. The rates are still around 4%

Sharpen Your Pencils!
Determining how much you can afford to finance in today’s market requires careful consideration and a bit of math. If you are thinking about refinancing an existing mortgage or buying a home, use these charts to help you plan. Then call us, so we can answer your questions and help you take the next step!
Monthly Payment: How much can you afford?
Lenders will usually allow you to spend 28% of your total–or gross–monthly income to make mortgage payments of principal, interest, taxes and insurance. The table below shows how much 28% is at various income levels.
Annual Income	Gross Monthly Income	Affordable Monthly Payment**
$20,000	$1,667	$467
$25,000	$2,083	$583
$30,000	$2,500	$700
$35,000	$2,917	$817
$40,000	$3,333	$933
$45,000	$3,750	$1,050
$50,000	$4,167	$1,167
$60,000	$5,000	$1,400
$70,000	$5,833	$1,633
$80,000	$6,667	$1,867
$100,000*	$8,333	$2,333
*For incomes over $100,000, add together the two appropriate columns.
Loan Amount: How much can you plan to borrow?
Once you know how much you can afford monthly, use this table to estimate how much you can borrow. Add your down payment to get an approximate house-hunting price range.
Monthly Payment**	5%	7%	9%	11%
$467	86,995	70,194	58,040	49,038
$583	108,603	87,630	72,457	61,219
$700	130,399	105,216	86,998	73,505
$817	152,194	122,802	101,539	85,791
$933	173,803	140,237	115,956	97,971
$1,050	195,598	157,823	130,497	110,257
$1,167	217,393	175,409	145,038	122,543
$1,400	260,797	210,431	173,995	147,009
$1,633	304,201	245,453	202,953	171,476
$1,867	347,791	280,625	232,035	196,047
$2,333	434,599	350,668	289,951	244,980
**Principal and interest only; taxes, insurance and any homeowner fees not included. These will raise your monthly payment and reduce the amount of principal and interest and total loan amount you can afford. Loan amounts are based on a 30-year fixed-rate mortgage. For incomes over $100,000, add together the two loan amounts and add your down payment.

Yet another reason for refinancing is to shorten the term of your current mortgage. If your income has grown substantially and you’re happy living in the same home, you could reduce the length of your loan by simply refinancing to a shorter-term mortgage with a smaller balance but higher payment. Using the above example again, a $175,500 loan paid off in 15 years at 8% would cost you $1,677 each month (about $200 more than for the original loan), but the loan would be paid off relatively quickly–saving you thousands of dollars in interest payments.
Whatever you decide, be sure to weigh the costs of refinancing carefully. A lower monthly payment may help your cash flow, but is it going to cost you too much up-front to make sense? Be sure you’ll live in the home long enough to recoup the expenses associated with refinancing–points, closing costs and fees.

Put Your Home’s Equity To Work

With Six Savvy Strategies

Do you have idle equity sitting in your home that could be building wealth instead? One of the great aspects of homeownership is that you increase your wealth every month by building equity in your home and reducing your tax bill at the same time.

After you’ve been in your home a few years, you may have some equity that you could put to work for you. Even if the property has appreciated by just a few percentage points per year, significant equity can build up fairly quickly. Just be sure you retain enough equity that you’ll be able to pay a real estate agent’s commission when you sell the home.

Home equity loans are the most common means of tapping a home’s value. In states where home equity loans are not allowed, however, you can still put your home’s value to work by refinancing it for more than you currently owe–a “cash out” refinancing.

The first way most homeowners think of using their equity is to pay off high-interest debt. That’s one popular option, but you could also invest that equity in other ways. Here are six more ways to put your equity to work for you.

1. Trade Up

Using your equity as a down payment for a larger home could make financial sense. If you’re in a $200,000 home now and it appreciates by 5% each year, your gain is $10,000 for the first year. In five years, that home would be worth $255,256. But in a $275,000 home, that same 5% growth would be $13,750 for the first year. After five years, the more-expensive home would be worth $350,977 — nearly $100,000 more than the less-expensive home.

Of course, you may not be able to count on 5% appreciation every year. It could be higher or lower, depending on the state of the economy and market conditions. Not to worry, though. Even 2% appreciation will still add up over time.

Using additional equity to trade up will allow you to put a significant amount of money down on your next home. That could allow you to own a home you never could afford before.

2. Downsize

Another way to use your equity is to scale down. With the recent changes in tax laws, homeowners may sell a home every two years and walk away with tax-free profits up to $250,000 (for singles) and $500,000 (for married couples). By scaling down, you can purchase a smaller, less-expensive primary dwelling, and use the extra cash for investments, debt reduction or even purchasing an investment property.

3. Second Home

The real estate market has been fueled during the past few years by retiring baby boomers purchasing second homes. Maybe now is the time to purchase that home on the beach, at the lake or in the mountains. We can refer you to a knowledgeable agent in a resort area to help you with this move.

If you know you’re retiring to a particular area in the next few years, study that market now. You may want to buy the home now while prices are still affordable. If you do, you could rent the home during the peak vacation season. Many second homeowners discover they can just about cover their annual property expenses by renting out during peak season.

4. Investment Property

While the stock market often bounces up and down, many investors feel comfortable with the security of real estate. Not everyone has extra money to play the stock market profitably, but landlords can enjoy income every month. The secret is selecting the right property and finding expert property management if you don’t want to manage the property yourself. We can help with both these issues.

Some buyers have found it beneficial to purchase a property in the area where their college-age children are going to school. Their child can help manage the units and share the housing with other students to defray costs. The young adults learn responsibility and property management skills, and you have a live-in manager to watch over your investment.

5. Shared Equity

Another way to put your idle equity to work is to lend it to an adult child as a down payment for his or her first home. Some parents maintain a co-ownership interest while the young adult makes the mortgage payments. At the time of the sale, the equity is then split between the two. This is called a shared-equity arrangement.

6. Remodel

If you really like where you’re living, but desire a few more amenities, consider taking cash out for remodeling or adding to your current home. The interest paid on some home equity loans is tax deductible, just as it is with your first trust. Give us a call to find out what financing options suit your situation best.

Call us, we are the experts with expert partners in mortgage and everything real estate related. 800-497-7325-3607 or kaybaker@ec.rr.com . Sign up for our newsletters and our weekly TGIF Scoop on everything Wilmington NC!

The survey is in and there are some low cost renovations that you can do to your home that will bring you more money back at the closing table.  Before you start,  go around your house and your yard and take pictures that you think would look good when the house is listed.  Take a good look at these pictures and you can pick out the things that need to be changed.  Like they say: a picture is worth a 1000 words.  You will see things that you walk by everyday and do not even catch your eye…. but they will catch a potential buyers eye.  The results are interesting and can help you prepare your home for sale.  We can help you with each of these steps.

The marketing company surveyed nearly 600 real estate professionals to discover which DIY home improvement projects give sellers the biggest return for their buck. Here are six projects under $1,000 (amounts are estimated) that made the list.

1. Cleaning and decluttering.Remove any personal items, unclutter countertops, organize closets and shelves, and make the home sparkling clean.
   • $290 Cost
   • $1,990 Return
2. Brightening.Clean all windows inside and out, replace old curtains, update lighting fixtures, and remove anything that blocks light from the windows.
   • $375 Cost
   •  $1,550 Return
3. Smart staging.Rearrange furniture, bring in new accessories and furnishings to enhance rooms, incorporate artwork, and play soft music in the background.
   • $550 Cost
   • $2,194 Return
4. Landscaping enhancements.Punch up the home’s curb appeal in the front and back yards by adding bark mulch, bushes, and flowers and ensuring current plants and grass are well-cared for and manicured.
   • $540 Cost
   • $1,932 return
5. Repairing electrical or plumbing.Fix leaks under the sinks, remove any mildew stains, and ensure all plumbing is in good working condition. Update the home’s electrical with new wiring for modern appliances, fix any lights or outlets that don’t work, and replace old plug points with new safety fixtures.
   • $535 Cost
   • $1,505 Return
6. Replacing or shampooing dirty carpets.Steam-clean carpets, replace any worn carpets, and repair any floor creaks.
   • $647 Cost
   • $1,739 Return

Realtor Magazine : Excerpted from HomeGain’s 2011 Home Sale Maximizer Survey: www.homesalemaximizer.com.

Let us know if you would like help getting your home ready for the market.  That is our expertise and we love “before and after” photos!  www.cbbaker.com for all your Wilmington NC real estate needs.

According to Mortgage Match new rules will make it mandatory for Mortgage Lenders to give mortgage applicants credit scores and credit report factors used during the loan application process.  If a Mortgage Lender quotes an applicant an interest rate and points that the loan will cost and there is a difference between interest rate and costs quoted to other applicants the loan officers will be required by Federal law as of July 21 to:

“–Tell you that you received a less favorable offer because of negative information in your credit bureau files;

–Provide you the actual credit scores used for your rate quote;

–Disclose the name and contact information of the credit reporting company that supplied the scores that led to your less favorable quote;

–Provide consumer education materials explaining credit scores, how they are used, and how your own score ranks against other applicants, plus the credit file factors that may have depressed your score. For example, if maxed-out credit cards and late payments are in your files, they could play significant roles in lowering your credit scores” per Mortgage Match.

The applicants will be able to have access to their credit report and the whole loan application process will become more transparent for the applicant.  Consumer education materials will be available for the applicant, so they can see why they were turned down, or received a higher interest rate.  They will have the right to obtain a  free credit report if turned down for the loan.

Octobers average sales price has managed to exceed last month as well as 2009 year end average sales price. While the numbers of sales were down from last month and as well as down from a year ago. Our average sales price is up 5.8% over last month and up 1.1% from Year End 2009. When we look at our year to date average sold price we are only down 2.1% from Year End 2009. Our median sold price is up from last month by 4.8% and down by 2.4% from last year this time. Our median sold price has rebounded and has risen and is only 1.2% behind 2009 year end median. In our rolling 12 months we are up 10.8% in sold units and our average sold price is only down by 3.7%. Sold units are only 85 units down from last month and down 153 from last October.

In the month of October we saw a decrease of 241 homes in our listing inventory, we have 5,150 homes on the market as of November 1st.  This continues to put us in a strong buyer’s market with a listing inventory of over a 16.8 month supply. With the low sales in October this affects our month supply with a change of 2.6 months from last month. Our average list price has stayed below the $400,000 range for the last year; we are currently at $364,097. In October we saw an increase in our seller concessions, it is now 25.6%. Our average days on the market are 121. The list to sold ratio is 93.0% and there is no change from last month; this number needs to continue to get better. The number of homes that sold in 15 days or less continues to remain very low, 18.0% of October sold homes. The 30-year fixed-rate mortgage (FRM) averaged 4.17% with an average 0.8 points for the week ending November 11, 2010. We have hit historic lows in mortgage rates. Call me so I can show you or your clients how they can get the benefit of these rates. Have a great week and let me know what I can do to help you and your clients.

Despite all the media comments about our markets we are still lending money for residential mortgages. If a client has income and credit and some sort of down payment; they can get a mortgage. It goes to the basic three C’s – Capacity, Collateral and Character.

Listing Inventory

In October we saw a decrease in listing inventory of 241 units. We are about 146 units under November 1, 2009. We have 5,150 single family homes for sale in our MLS. The average list price of $364,097 is down by $801 from last month. The average list price has decreased by 4.8% from November 1, 2009.

Monthly Average Sold Price

Our monthly average sold price is up by 5.8% from last month and down .01% from October 2009. Our average sold price is up by $12,898.00 from last month. October average sold price ($236,985) shows an increase of 1.1% from year end 2009. Our average sold price is up by $321.00 from last October.

Monthly Sold Units

This month’s decline in the number of homes sold when compared to previous year is down 153 units. The number of sold homes is down 21.8% from last month and down 33.4% from October 2009. Last month we had 390 sold units and this month 305 sold units, last year in October we had 458 sold units.

While our current year to date numbers are lower than Year End 2009 they do show promising signs that our sales are on the upswing. The first ten months of 2010 has a 211 sold unit gain over first ten months of 2009. The average sales price is down 2.9% for the first ten months of 2010 than the first ten months of 2009. Our median sales price is just 1.2% behind 2009.

Median Sold Price

Our Median sold price rebounded this month an increase of 4.8% from last month, up to $181,500. Our national numbers lag by one month. Our median sales price dip from last month matches up with the national median for September. I am hoping we can see the national median sales price reverse its downward trend.

Pending

Pending Sales – A sale is listed as pending when the contract has been signed but the transaction has not yet closed. Sales are typically finalized within one to two months from signing. I look at the total pending units on a regular basis and this is how they chart out. We saw our peak pending numbers about May 3^rd. We are actually up 2.3% from last month and we are down just 16.9% from November 2, 2009. With the tax credit benefits expired it will be interesting to see if our sales can improve going into early fall.

Market Absorption rate – The number of homes sold in October, 305 divided by the current listing inventory, 5,150 gives us a 16.8 month supply of single family homes. This increased by 2.6 months from last month. We need to get this inventory back under 12 months. With a large inventory and the few sales in October this affects our market absorption. With rates where they are and plenty of inventory; we can get this number down.

List to Sold price ratio – the average list price of the sold properties is $254,799 and the average sold price is $236,984 for October which gives us a 93.0% list to sold price ratio – a zero change from last month. We have now managed to stay under 95% for over a year and several months.

Seller Concessions – We had 25.6% of sold properties report a sales concession for October, an increase of 2.1%. We want this number to go lower.

Days on Market – The average days on market for the sold properties is now at 121 for October. That is about 4 months to keep a property on the market. Only 18.0% of the properties were placed under contract in less than 15 days for the month of October.

Carolina & Kure Beach

There are currently 405 single family homes for sale and this represents a 40 unit decrease over October 1, 2010 and 7.9% of our total WRAR inventory. The average list price is $412,359 a decrease of about $3,484 from October. In October there were 28 homes sold, divide that by the homes available and you have a 14.4 monthly supply of homes in Carolina and Kure Beach. The average sold price for the month of October was $263,439 and is up $11,864 from last month. When we look at our rolling 12 months November 1, 2009 to October 31, 2010 we have 327 homes sold at an average price of $284,291. While November 1, 2008 to October 31, 2009 we had 266 homes sold at an average price of $301,186.

This data was pulled on November 13, 2010, based on information from the Wilmington Regional Association of REALTORS Incorporated, for the period Jan. 1, 2005 through October 31, 2010. David Flory

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