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Can You Buy a Home Again After a Foreclosure, Short Sale, or Bankruptcy?

Image via Stuart Miles/Kozzi.com

A few short years ago, we all found ourselves in the midst of the worst recession since the Great Depression. Businesses collapsed. Housing collapsed. Jobs were lost.

There’s no need to recap a history that is still vivid in many of our minds.

The economy, thanks in a large part to housing, is recovering. Not as fast as some would like, but things are improving.

If you found yourself dealing with a short sale, foreclosure, or bankruptcy, you might be wondering if you can ever own a home again. The answer may surprise you.

Boomerang Buyers

Anyone who has completed a foreclosure, short sale, or bankruptcy and now qualifies for a mortgage because the waiting period ended and the foreclosure, short sale, or bankruptcy has fallen off your credit report is a possible boomerang buyer. You owned a home until the economy tanked and regardless of your reasons (job loss, exploding interest rates for adjustable rate mortgages, whatever), you took a bit hit to your credit. Now, enough time has passed that your credit score is no longer affected.

If you qualify for a mortgage and want to buy a home, you are a boomerang buyer.

A few facts:

• 7 million people went through a short sale, foreclosure, or bankruptcy between 2006 and 2014
• 1 million people have already restored their credit
• 350,000 people were return (boomerang) buyers in 2014
• 2 million people will meet mortgage requirements to become return buyers over the next 5 years

What does this mean?

You aren’t alone in this. And, if you choose to, you can own a home again.

For Those with Recent Credit Blemishes

While it’s always better to have the best credit possible before you apply for a mortgage, there are options for people who’s credit hasn’t repaired itself yet.

Some non-bank lenders are lending to buyers who have gone through a foreclosure, short sale, or bankruptcy more recently, according to a recent Wall Street Journal report.

This isn’t a golden ticket for anyone with poor credit.

Lenders still verify income and look at credit history. For a buyer who’s only problem was a lost job or a catastrophic illness – situations beyond their control – who maintained a decent credit score outside of losing your home, you might have more options than you realize.

While some of these lenders will consider someone with a FICO score as low as 500, the vast majority of these buyers had high credit scores before the job loss, illness, etc. and maintained a good credit score after the event. Be prepared to pay much higher interest rates, though, which could fall anywhere between five and 10 percent.

For those who dream of owning a home, all is not lost. Talk to a lender. Check your credit report. And continue to save for a down payment. Depending on your situation, you may qualify for a mortgage sooner than you think. You can be a homeowner again.

3 Reasons to Feel Optimistic About Real Estate Right Now

Image via Kozzi

Last week, optimism dominated the real estate headlines. It all pointed to a healthier real estate market, and good news for both buyers and sellers.

FHA Loans Hit a Two-Year High

In April, the Federal Housing Administration (FHA) endorsed 108,386 residential loans. Those loans account for $21.624 billion (yes, with a “b”) in home loans. That number includes traditional loans, home-equity mortgages, and Title 1 loans. The last time this many loans at such a high value were endorsed by FHA was in May 2013.

Why should you care? FHA loans offer lower down payments, work with buyers from moderate incomes, and have less stringent requirements for borrowers. While there are plenty of good loan products out there other than FHA, more FHA loans is a good sign that first-time home buyers and other buyers are returning to the market.

Mortgage Sales Outnumber Cash Deals in Florida

For the first time since 2009, May saw more homes purchased by buyers with mortgages than those with cash. The 64-month streak has been broken. In May, cash deals counted for 47 percent of all home sales.

Why should you care? Many cash investors swooped in and purchased lower priced homes, which in some areas caused an inventory shortage for buyers with mortgages. What was often left behind were higher value homes or the low-end foreclosures that needed work to be done to make them liveable. The increase in mortgages means that more people are entering the market and qualifying for a mortgage. All of this is good for buyers and sellers.

U.S. Consumer Confidence Increased in June

According to the latest U.S. Consumer Confidence Index, American consumers are becoming more confident about business and employment. More people believe jobs are “plentiful,” while less believe they’re “hard to get.”

Why should you care? More optimistic consumers often leads to a willingness to spend money in the near future. As long as buyers feel they can keep their job because business is good or can find a job if they need to, it’s easier to make the commitment to a new home and a mortgage.

Not everything in the real estate market is perfect. Lending is still difficult for specific pricepoints and specific buyers. There are inventory shortages in some areas. But, whether you’re a buyer or seller, you can feel more optimistic as we move through the summer months. On the Emerald Coast, business is good.

Happy Independence Day, Emerald Coast!

Image via Kozzi.com

Whether you call it the Fourth of July or Independence Day, July 4 is an important day for every American. Our country stands strong after more than 200 years of independence, and we’ll stand strong for years to come.

Show your U.S.A. pride with flags, fireworks, and everything American this week. Thanks to the holiday falling on a Saturday, more of us can enjoy a late night out watching the big fireworks displays around the Emerald Coast.

Pick your town, and you’ll find a way to celebrate:

Crestview

The fireworks begin at dark over at Spanish Trail Park.

Defuniak Springs

Head on over the Lake Defuniak for an afternoon of fun and an evening of fireworks!

Destin

You have two options in Destin this year. The city of Destin will hold the 30^th annual fireworks display over East Pass. Find a place to watch or go on down to Harborwalk and make it a big night with activities, restaurants, and plenty to do – before and after the show.

Fort Walton Beach

Head on down to the Landing around 4:00 p.m. and enjoy plenty of family-friendly fun before the fireworks show at 9:00 p.m.

Miramar Beach

Head on down to Baytowne for Red, White, and Baytowne. Fun for the whole family begins at 6:15 p.m.

Navarre

The Independence Day Celebration by the Bay starts at 6:00 p.m. and the fireworks begin sometime after 9:00 p.m.

Niceville

The pre-show starts around 8:00 p.m. and fireworks will go off over Boggy Bayou around 9:00 p.m.

Rosemary Beach

Enjoy an entire day celebrating the Fourth with bike decorations, family activities, a concert on the green, and the grand finale, a fireworks show.

Seaside

Come out early for the big parade. Stay for the concert. End the night with the big fireworks display.

Find your town’s fireworks and celebration plans here:

Emerald Coast Hub

Florida Fireworks

Enjoy the fireworks and remember what it’s all about and what makes America so great. Independence Day is about freedom!

Happy Independence Day, Emerald Coast!

May 2015: Single Family Home Sales Strong Along Emerald Coast

Image via Kozzi

May was a good month for single family home sales along the Emerald Coast. Condo and townhouse sales faltered slightly in Okaloosa County but remained steady elsewhere. Prices dipped slightly in some areas but not enough to indicate any major changes. Inventories continue to shrink in across the Emerald Coast. All sales data is a year-over-year comparison between May 2015 and May 2014.

Single Family Home Sales

Emerald Coast

• Closed sales increased 16.8%
• Pending sales rose 20%
• Median prices decreased 1.7%
• Inventory decreased 3.7%
• Months supply decreased 20.9% to 6.7 months of inventory

Okaloosa County

• Closed sales increased 13.1%
• Pending sales increased 12%
• Median prices decreased 0.1%
• Inventory decreased 5.3%
• Months supply decreased 22.1% to 5.6 months of inventory

Walton County

• Closed sales increased 19.3%
• Pending sales increased 30.9%
• Median prices increased 10.6%
• Inventory decreased 4.%
• Months supply decreased 24% to 7.9 months of inventory

Townhouse and Condo Sales

Emerald Coast

• Closed sales increased 3.6%
• Pending sales increased 14.3%
• Median prices decreased 2%
• Inventory dropped 2.7%
• Months supply increased 6.4% to 10.1 months of inventory

Okaloosa County

• Closed sales decreased 12.2%
• Pending sales decreased 2.4%
• Median prices decreased 20.9%
• Inventory decreased 4.9%
• Months supply increased 8.6% to 11.1 months of inventory

Walton County

• Closed sales increased 7%
• Pending sales increased 18.4%
• Median prices decreased 1.4%
• Inventory decreased 9.6%
• Months supply decreased 10.8% to 8.7 months of inventory

A few things to remember…

A healthy real estate market (meaning neither buyer nor sellers have an “advantage”) is a six to eight month inventory. Below six months, it’s thought to be a seller’s market and above eight months is considered a buyer’s market.

Inventory can decrease while the months’ supply can increase – as well as the reverse. As inventory falls, buyers have less options. If the available inventory shrinks too much, sales can slow down which will increase the months’ supply of homes for purchase. This also contributes to quicker offers for well-priced and positioned homes, as well as multiple offers.

Median prices decreased in all areas for single family homes, condos, and townhouses but one in May. The median price is determined, in part, by the price ranges buyers are selecting and the inventory available in those price ranges. The decrease was negligible, statistically, but its bears monitoring.

Pending sales are only an indication of the month ahead. In months with an increase in pending sales, you can expect sales to increase for the following month. A decline in pending sales may be an indication of lower sales the next month. It is not an automatic as sales often take more than 30 days to close.

All sales data is from the Emerald Coast Association of Realtors® (ECAR) Multiple Listing Service (MLS) and is compiled by Florida Realtors®, the state association for Florida. The Emerald Coast statistics cover both Okaloosa and Walton counties as well as surrounding areas based on the listings entered into the MLS by ECAR MLS participants.

Preparing for a Hurricane

Be prepared

The Atlantic Hurricane Season lasts from June 1 to November 30. Don’t be caught off guard. Use this guide and take the time to:

• Stock up on supplies
• Consult and plan with your family
• Get organized and ready for an emergency
• Stay informed so you’ll know when a storm is coming

When hurricane season begins

The beginning of the season is the best time to develop your emergency response plans. Make sure you have supplies to last at least two weeks.

Create a disaster kit to take with you in case of emergency. The American Red Cross recommends it contain:

• First aid kit and essential medications
• Canned food and manual can opener
• At least 3 gallons of water per person
• Protective clothing, rainwear
• Bedding or sleeping bags
• Battery-powered radio, flashlights, extra batteries
• Special items for infants, elderly, or disabled

Review your insurance policy and keep a copy in a watertight container. Take it with you if/when you evacuate. Obtain written instructions on how to turn off electricity, gas, and water in case authorities advise you to do so.

Emergency supplies to have at home

• Two-week supply of medicines, prescriptions
• First aid supplies
• Medical ID
• Extra clothing, eyeglasses, etc.
• Toiletries
• Manual can opener
• Ice chest and ice
• Pillows, blankets, sleeping bags
• Quiet games, books, playing cards
• Portable radio/flashlights and clock with extra batteries
• Infant necessities (baby food, formula, disposable diapers)
• Tools, nails, duct tape
• Important papers (valid ID)
• Plenty of cash (ATMs may not work)
• Fire extinguisher
• Disposable plates, glasses, and utensils
• Disposable washcloths and paper towels
• Bleach (without lemon or any additives)
• Trash bags
• Water storage containers
• Fuel can and fuel, sterno
• Portable, battery-powered lanterns
• Mosquito repellent

Non-perishable foods

• Bottled water
• Powdered or individually packaged drinks
• Crackers, cereals, cookies, snacks
• Canned meats, fruits, vegetables, soups, puddings, milk
• Special dietary foods
• Peanut butter and jelly
• Powdered or shelf-pack milk
• Dried fruit
• Instant coffee and tea
• Condiments
• Pet food

Decide where you will go if you must evacuate.

Prepare in advance to evacuate inland to a low-rise hotel, motel, or a friend’s or relative’s home outside the storm area.

• Make a list of important phone numbers and pack in your disaster kit.
• Plan your route and an alternate – and have a current map of the route on hand. Notify family and friends of your plans.
• If you need special consideration to evacuate (because of age, physical disability, medical needs, etc.), register with your county’s civil defense and office of emergency management in advance.
• Discuss emergency plans with your agency representative and your physician if you receive home health care or depend upon electrical life-support equipment. Make arrangements with a hospital if necessary.

Make preparations for those with special needs

If you wish to help elderly friends or relatives evacuate:

• Plan when you will secure their property and pick them up when the evacuation order is issued.
• Keep a checklist of their prescription medications in your emergency plans so you will know what they need to bring.

Pet safety

Plan ahead where you will take your pets, as most shelters do not admit them.

• Boarding kennels, veterinarians, friends, relatives, or motels that allow pets are possibilities.
• Call your local Humane Society or your veterinarian for more information about pet care in an emergency.

Evaluate emergency equipment

Obtain and store materials – such as plywood and duct tape – necessary to properly secure your home. Pre-drill holes and cut plywood so you’re ready should a storm occur.

Keep trees and shrubs trimmed.

NOTE: Once a hurricane watch or warning has been issued, do not attempt to trim trees and/or shrubs. Trash pickup will be suspended, and your trash can become dangerous missiles in the storm’s high winds.

As the storm approaches

Pay attention to the latest weather updates on local radio and television stations or online.

If you must evacuate

Mobile homes and factory-built or pre-fabricated homes are unsafe in hurricane conditions, no matter how firmly they may be attached to the ground. High-rise apartments and condos must also be evacuated because they are susceptible to conditions that may cause fires during high winds, when it’s impossible to get emergency help. Hurricane winds are stronger at higher elevations.

An evacuation order may come from local officials and/or the governor, and will be broadcast by zone number.

• Leave early to avoid traffic or early flooding.
• Turn off electricity, water, and gas before you leave.
• Unplug major appliances.
• Remember your disaster kit. Pack emergency supplies in your vehicle and leave immediately on your pre-planned route.

Red Cross shelters are available for people who have nowhere else to go. Do not go to a shelter until you hear an announcement that it is open.

Organize emergency supplies

• Put your emergency plan into action and ready your family and home. Prepare emergency water storage: Sterilize bathtub, jugs, cooking utensils, and containers. Scrub thoroughly, sponge with bleach, rinse, and let dry; fill with water.
• Clear your yard of loose objects such as bicycles, lawn furniture, and trash cans.
• Anchor objects (no matter how heavy or large) that cannot be moved inside.
• Secure your boat. Lash it to your trailer securely, let the air out of the trailer tires, and secure to something sturdy in the ground. If you keep your boat in a marina, check your contract: some require that you move it when a hurricane watch is issued. You are responsible for your boat.
• Close all windows and doors, and board wherever possible. Taping glass will not prevent breakage.
• Do not drain your pool completely; lower water level 6 to 12 inches and add extra chlorine to prevent contamination. Turn off electricity to equipment and cover pool pump, if exposed.
• Store documents and valuables in waterproof containers and secure in the highest possible spot.
• Turn your refrigerator and freezer to the coldest setting opening only when absolutely necessary.
• Freeze water in plastic jugs and containers, and use them to fill empty spaces between refrigerator contents to keep food cool.

After a storm

Don’t expect to return home immediately. Access to damaged areas will be controlled due to rescue and repair operations.

• Avoid driving; leave the roads clear for emergency vehicles.
• Report dangling electrical wires and any broken water, gas, or sewer lines to your local utility department. Do not report individual interruptions in power, water, or phone service.

Enter your home with caution

• Beware of snakes, insects, or other animals driven to high ground by floodwater.
• Be careful with fire. Do not strike a match until you are certain there are no severed gas lines.

Never use a generator inside your home or garage, even if doors and windows are open. Only use generators outside, more than 20 feet away from your home, doors, and windows.

5 Natural Ways to Clean Windows

It’s no secret windows are prone to dust and dirt buildup, even if your home is cleaned regularly. The good news? You don’t have to spend another penny on Windex with these natural, inexpensive window cleaning tricks.

• For windows with a light layer of dust, wipe down panes with an old cotton T-shirt or other lint-free material you no longer have use for. After dusting, polish glass with newspaper to make your windows sparkle.
• For a super streak-free shine, combine equal parts water and white vinegar in a spray bottle and wipe down with a cotton cloth or squeegee to minimize dried drips.
• If your windows have seen better days, wash them thoroughly with soapy water prior to using the water/vinegar solution. To rid your windows of extra stubborn streaks in one step, combine two cups of water with one-fourth of a cup of white vinegar and half a teaspoon of dish soap.
• To create a cleaning solution tough enough to tackle grease, mix one tablespoon of lemon juice with one quart of warm water. The acidity in lemon juice is more powerful than you think!
• Windows caked in hard water need a little more TLC. To remove hard water stains, dampen the window with a wet cloth and gently rub the area with extra-fine (#000 grade) steel wool. After, wipe down with the water/vinegar solution.