The Foreclosure Process in Pennsylvania

February 14, 2012 Leave a Comment

Foreclosures are never pretty.  They tear families apart.  They destroy a homeowner’s credit.  They ruin a neighborhood’s sense of closeness.  When someone that you know is in financial trouble, you feel like you’re living their nightmare.

The purpose of this post is not to draw attention to this troubling trend, but to assist homeowner’s in understanding the confusing process that they might go through if they find themselves in this unfortunate circumstance.


(Click the graphic above for a larger image)

Before the foreclosure process can begin, the borrower must be at least 60 days late on payments.  The lender usually sends the borrower two letters before starting the foreclosure.  These letters notify the borrower of the impending foreclosure and give the borrower options to prevent the foreclosure.  The owner has a period of 2-4 months to find a way to prevent the foreclosure before the lender takes further action.
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Four Trends That Will Rock the Real Estate Industry in 2012

January 23, 2012 Leave a Comment

If there is one thing that I’ve learned in the real estate business over the years it’s that change is constant.  New tools, programs, regulations and innovators make this an industry that doesn’t stand still.

From computerization of Multiple Listing Service data to smart phones to mortgage preapprovals to digital signatures; innovation waits for no one.  You either embrace it or get out of the way.

So without further ado, here are my predictions for the upcoming year and some of the things that I believe will rock our industry (again):

1.  Listing Syndication and Internet Data Exchange (IDX) Will Come Under Fire

It has been commonplace over the last couple of years for companies and agents to syndicate their listings to as many real estate web sites as possible to increase the chance that their properties will get noticed by home buyers who will in turn contact an agent to buy a home.  Sounds like a plan – right?

Enter Edina Realty.  Edina is a mega broker with 60 real estate offices and over $5 billion in sales located in Minnesota, Wisconsin and North Dakota.  In late 2011, Edina stopped syndicating their listings to national websites.  Why would one of the top ten real estate companies in the US decide to shun syndication?  If you listen to them, there are three reasons: Read more of this post

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Prudential Survey Shows Optimism Among Americans

July 26, 2011 1 Comment

Americans Believe in Real Estate

The majority of America’s potential homebuyers and sellers — 68 percent — believe that the real estate market and property values will recover in the next year or two, according to a new survey by Prudential Real Estate and Relocation Services, a Prudential Financial, Inc. company.  This exceeds the 47 percent of Americans who expected house prices would rise in a similar survey conducted in April 2010, underscoring a more bullish outlook for the real estate market today.  In addition, 86 percent of Americans believe real estate is a good investment despite the market volatility of the past few years.

The national survey reveals that six in 10 respondents are more interested in buying real estate (58%) and are optimistic about buying given the momentum of the economic recovery (59%).  It also shows that although the price of many Americans’ homes declined during the recession, 89 percent recognize they can also buy a new house at a lower price.

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What’s Up with Mortgage Points?

July 5, 2011 Leave a Comment

Image via Wikipedia

If William Shakespeare financed a home today he’d probably ask the question regarding mortgage points: “To pay or not to pay? That is the question.” Homebuyers direct the same question to their real estate agents. Here are some perspectives:

In its simplest definition, a point is an additional loan fee that is paid to the lender in exchange for a lower interest rate. It’s called “buying down,” and it allows you to reduce your rate for the life of the loan.

Let’s say you secured a mortgage loan for $150,000 without points, at 4.6% on a 30-year mortgage, your principal and interst payment would be $768.97 a month. If you paid two points ($3,000), the interest rate in this example may go down to 4.1% and the monthly payment would decrease to $724.80, a savings of $44.17 a month.

In this scenario, it would take you about eight years to recoup the money you paid up front, so if you are planning on staying in your home a while, this will save you money in the long-run.

Home buyers must answer some key questions to determine if paying points is a wise decision. Specifically: Read more of this post

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Prudential’s ‘Bring Your Challenges’ Ad Campaign Debuts

May 24, 2011 Leave a Comment

Bring Your Challenges!  That’s the message in Prudential’s new U.S. advertising campaign launched today.  The campaign invites individuals, financial professionals and institutions to bring their biggest financial challenges to Prudential and highlights our company’s 135-year history of meeting those challenges for Americans.

The campaign debuts with ads in The New York Times, The Wall Street Journal, Washington Post, USA Today, The Star-Ledger, Barron’s and the Financial Times, and will include television, outdoor advertising, digital, business, general interest and trade media.

The advertising highlights some of the tough challenges our company is already working to address, including helping Americans plan for lifetime income security, manage risk in pension plans and investments, deliver cost effective benefits to employees, secure adequate insurance coverage and make sense of the real estate market. 

The ad campaign outlines Prudential’s goal to help solve the financial challenges that we all face—not in the short term, but for the long-term benefit of our clients and our communities.  In fact, Prudential business leaders and industry thought leaders discuss those pressing financial issues we all face today in short videos featured on a new website our company created for the campaign.

“This is a significant new campaign designed to demonstrate the important leadership role Prudential plays in helping people and organizations tackle their biggest financial challenges,” says Colin McConnell, head of Prudential Advertising, the company’s in-house advertising agency. “‘Bring Your Challenges’ will build on the strength of Prudential’s brand and our leadership position in our core businesses. And it will showcase the dynamic company we are today.

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The 2013 Real Estate Sales Tax Myth

February 2, 2011 Leave a Comment

Over the last two or three months, I have received a number of e-mails from consumers and REALTORS® alike that have forwarded the following to me seeking confirmation:

Did you know that if you sell your house after 2012 you will pay a 3.8% sales tax on it?  That’s $3,800 on a $100,000 home!  When did this happen?  It’s in the health care bill and it is scheduled to go into effect in 2013, right after the 2012 elections.  So, this is “change you can believe in” that Obama has been preaching?  Under the new health care bill – did you know that all real estate transactions will be subject to a 3.8% Sales Tax?  Since the bulk of these new taxes won’t kick in until 2013, most people won’t know what hit them until after the election.  This means if you sell your $400,000 home, you will have to pay a $15,200 real estate tax.  This bill is set to screw the retiring generation who often downsize their homes.  Does this stuff make your November and 2012 vote more important?  Oh, you weren’t aware this was in the Obamacare Bill?  Guess what, you aren’t alone.  There are more than a few members of Congress that aren’t aware of it either.  Why am I sending you this?  The same reason I hope you forward this to every single person in your address book.  VOTERS NEED TO KNOW!

To quote Sergeant Hulka (played by Warren Oates) from one of my favorite movies, Stripes, “Lighten up Francis!”.  Here’s the real story.

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