October 14, 2011 Newsletter

It’s hard to believe we are talking about fixed rate mortgages possibly dipping below 4 percent. The market appears to be heading towards that possibility. Currently there are 5/1 ARMS available in the low threes and it’s not impossible to envision them going to the high twos. Depending on your situation, if you refinanced in the last year or two and are in the upper four percent range, it may be time to refinance once again.

We are seeing a steady stream of purchases, but no trend is apparent. Prices are starting to stabilize in the area, as written in both national and local press. Transactions with financing contingencies are taking 60 to 90 days with the lenders having extremely conservative underwriting guidelines.

Short sales are still dominating the market, and strategies are emerging to successfully negotiate these transactions. If you or someone you know is in need of negotiating a short sale, we have worked on these deals and understand the nuances.

By the same token anyone purchasing a property from a bank who has already acquired the property by a deed in lieu or through foreclosure, contact us about what terms are needed in the contract to protect the buyer. Lenders are unwilling to grant concessions on repairs and its imperative that buyers are satisfied prior to ratifying the contract as to the condition of the house and or any issues with homeowners associations, condominium associations, ground rents or water bills. Buyers can make the contract contingent on a preliminary title report. We can determine the status before the buyer gets involved in significant costs for home inspections, loan applications, appraisals, etc. While the traditional route has been to go to loan application and then order the title report, in this market it may warrant that buyers consider having a title checked prior to loan application or even contract. We have one client on their third house under contract THIS YEAR, after determining issues other than appraisal or loan qualifications.

We have been handling closings for over thirty years. We know the issues. We want to be your title company and law firm. My contact info is tee.tillman@colonytitle.com and 410 884 1160 x 3007. Please call.