How to get the best mortgage rates in the country? Buy new

As mortgage rates fall to near historic lows, some homebuilders are offering even lower interest rates in an effort to lure buyers during the slow spring selling season.

The latest sales promotion: Lennar Corp. is offering a fixed 3.625% rate over the life of a 30-year fixed rate mortgage. The deal is besting average rates that have fallen below 5% nationwide, but it comes as other builders are reporting mixed results from similar incentives.

Hovnanian Enterprises Inc.'s recent offer of a 3.99% rate sparked "underwhelming" interest from homebuyers, says Dan Klinger, president of the builder's mortgage operation. "It wasn't like we needed crowd control," Klinger says.

Earlier this year, luxury builder Toll Brothers Inc. was offering a 3.99% interest rate in many of its developments nationwide, but today that rate is no longer available nationally. Toll executives said that the promotion boosted traffic to its Web site, but the low rate alone hasn't been enough to break weak consumer confidence that is still weighing on the market.

Bargain mortgage rates are the latest sales strategy from builders struggling to sell homes. Mounting unemployment continues dogging the sector, because people without jobs, or those afraid of losing one, are unlikely to purchase, no matter how low the rate.

Since the downturn began, builders have tried everything from free tropical vacations to subsidized closing costs in order to move inventory. They then cut costs and even offered layaway plans for down payments.


For homebuyers, the low mortgage rates from the builders represent significant savings. But be wary of the fine print: Lennar is offering the 30-year rate "on select homes," and the loan amount cannot exceed $417,000. The minimum credit score is 700, which is a relatively high score in the current environment. In addition, it could be hard for buyers to come up with the minimum 10% down payment that Lennar requires to qualify for the 3.625% rate.

The builders' low rates may help first-time homebuyers, "but it's not going to goose the trade-up market," says Thomas Lawler, a housing economist. "That's because most trade-up buyers use the equity from their previous home for a down payment, and that equity often doesn't exist anymore."

KB Home is one builder that isn't chasing buyers with low mortgage rates, for now. Instead, the Los Angeles-based builder is focusing on offering smaller houses that are competitively priced with foreclosed houses. The strategy seems to be helping KB, which reported last month that its sales improved more than some analysts expected.

While some builders acknowledge that price cuts are the most effective way to move inventory, such cuts could cause buyers who have already bought a house at a higher price to walk away from their deposits.

It can be costly for builders to offer the low rates because the companies typically pay mortgage investors cash upfront in exchange for the low interest-rate loans. Federal regulations limit how much the builders can contribute to buy down mortgage rates. Currently, if a homebuyer puts down 5% or less, the builder is limited to incentives worth 3% of the sales price, Klinger says. For down payments of 10%, the limit climbs to 6%.


*This article was written by Michael Corkery and Dawn Wotapka of The Wall Street Journal.

Pending home sales rebound in April due to first-time buyers

Les Christie CNNMoney.com staff writer
On Tuesday June 2, 2009, 11:02 am EDT

The number of home sales contracts signed in April continued to bounce back from record lows hit last winter, according to a widely watched industry report. This is the third consecutive month of gains.

The Pending Home Sales Index from the National Association of Realtors rose 6.7% in April after jumping 3.2% in March. That was far above the forecasts of experts surveyed by Briefing.com, who predicted a 0.5% increase. The index was 3.3% higher than 12 months earlier.

Pending home sales are a forward-looking indicator since many of the contracts don't result in completed deals for many weeks or months.

"Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market," said Lawrence Yun, NAR's chief economist in a prepared statement. "Since first-time buyers must finalize their purchase by Nov. 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers."

The credit allows many homebuyers who have not owned a home in the past three years to claim up to an $8,000 refund on their taxes. The result has been a flood of first-time homebuyers even into lukewarm markets like Indianapolis, according to Glenn Bill, an agent there for Century 21 Sheetz.

"Our first-time homebuyer market is exploding," he said. "That's one good thing to come out of the stimulus package."

Low prices

Also driving sales is falling home prices. The national median home price is down more than 30%, according to the S&P/Case-Shiller Home Price Index. That has drawn many bargain-hunting homebuyers back into the market.

Mortgage rates in April were also very favorable, averaging well under 5% for a 30-year, fixed-rate loan. However, rates have risen recently.

All those factors have raised NAR's index of affordability to near record highs. It went up to 174.8 in April from an upwardly revised 171.9 in March, its second highest monthly reading ever. This index measures the relationship between home prices, mortgage interest rates and family income.

Regionally, the biggest improvement in home sales came in the Northeast, where they shot up 32.6%. Sales ramped up 9.8% in the Midwest, inched up 1.8% in the West and cooled 0.2% in the South.

Also boosting sales, according to NAR president Charles McMillan, a Coldwell Banker broker in Dallas, is that some states and non-profit agencies are helping first-time homebuyers come up with down payments.

"Some states are offering bridge loans that allow first-time buyers to use the tax credit for down payment and closing costs, but there are many other local government and nonprofit programs available to buyers, depending on location," he said.

The Department of Housing and Urban Development announced last week an additional program that enables homebuyers to add the tax credit to their down payments on FHA mortgages at closing, which should also help to enhance affordability and give a push to home sales.

Can You Afford To Buy?

When you decide to buy a house, one of the hardest things to figure out is how much you can afford. The important thing is only to spend as much as you can comfortably afford.

What Do You Need To Know about Home Loans?

Most people bxorrow money to buy a home. If you take out a home loan, then you will have a monthly mortgage payment. This payment has several components. These parts of a mortgage payment are called PITI – principal, interest, tax and insurance.

Principal. The principal is the loan amount remaining unpaid.

Interest. The interest is the amount charged for borrowing money.

Real estate taxes. The real estate taxes are collected each month by the lender until the annual property tax bill comes due, and then the lender pays the tax bill.

Homeowner’s insurance and mortgage insurance. Lenders often require homeowner’s insurance and mortgage insurance as part of your payment. Homeowner’s insurance provides protection if something major happens to your house such as a fire, and the mortgage insurance protects your lender in case you don’t make your payments.

What Are Other Costs of Home Ownership?
Too often people consider only the monthly mortgage payment when deciding if they can afford to buy a home. Other costs are also very important such as loan costs, new housing expenses, and current living expenses. When you borrow money, a lender may charge fees such as an application fee. Another initial cost can be points.

Points are a one-time charge by the lender to increase the loan yield. A point is one percent of the mortgage loan amount. These are some possible closing costs. Closing costs are expenses (above the property price) paid by the buyer and the seller.

You can’t borrow all the money you need to buy a house. You will need some cash for the closing costs and the down payment. A down payment is a percentage of the home’s purchase price.

The percentage depends on the type of loan you get. Lenders usually require 20 percent down payment for a conventional mortgage. Some lenders will finance for as low as 10 percent down payment, but require the buyer to purchase mortgage insurance. FHA (Federal Housing Authority) and VA (Veterans Administration) financing requires even a smaller percentage down payment.

What are the additional costs you will have with home ownership? Use
Table 1 to list your current housing expenses and to estimate your future housing expenses. For example, what is your utility bill now and will it increase if you buy a new home?

Consider changes in the cost of your insurance, taxes, commute, tools, and fees such as condo fees.

You may want a "reserve fund" to cover initial new home expenses such as decorating, window coverings, furniture, lawn care equipment, and unanticipated repairs. Try not to do any major remodeling during the first year. If you stretch yourself too far and you can’t pay your monthly mortgage payments, you may lose your home.

Don’t forget to keep in mind your non-housing expenses. Non-housing expenses include food, clothing, entertainment, education, car expenses, medical expenses, childcare, savings, etc. These expenses are important to consider as you look at the mortgage payment figures. Can you comfortably afford the monthly mortgage payment if one of your other expenses (such as medical or childcare) increases?

****Provided courtesy of http://urbanext.illinois.edu/housing/afford.html

How To Clean Up Your Credit Report

Whether you are trying to buy a house, a car or get a personal loan, your credit is the first thing that the lender will look at. You can clean up negative information on your file, yourself. Here's how...


Things You'll Need
A copy of your credit report from all three credit bureaus (Experian, TransUnion and Equifax).
Persistence
Patience



Step One
Get a copy of your credit report from the 3 credit bureaus; Experian, TransUnion and Equifax. You can obtain a free report from each credit bureau once a year at annualcreditreport.com. You may also get a copy if negative information has been recently added or you had an application for credit denied.

Step Two
If you find any inaccurate information on your report, you may dispute it, either online or by writing a letter to the credit bureau that provided the report. If you have any proof of the inaccuracy you should send it along with the dispute letter.

Step Three
Once you have disputed the negative information, the credit bureau will contact the creditor regarding your claim and the credit company has 30 to 45 days to provide the requested information or the negative item has to be removed from you credit file.

Step Four
Negative items on your credit report may also be removed even if they are correct. If you have otherwise maintained good standing with the creditor that reported the information, you can write to them and request that they remove the item from your credit report.

Tips & Warnings

• There are companies that offer credit repair services, for those who don't want to go through the process of disputing their credit reports themselves.



• Whether or not your credit report needs to be disputed, you should monitor your credit reports from all three bureaus.



• If you are the victim of identity theft, you can write to the credit bureaus and request that a fraud alert be placed on your credit report.



• A fraud alert does not change your credit rating! You will have to verify your identity whenerver you apply for new credit, making the online credit application process more timely.



• Collection items will remain on on your credit report 7 years. Bankruptcy remains on your credit report for a 10 years.

*Provided courtesy of eHow by Sounique.

Pros and cons of paying down a mortgage

Q: I’m considering making extra payments on my mortgage. I like the idea of not being in debt. What do you think of this idea?

A: Paying off your mortgage quicker may make sense. This financial move isn’t as clear as paying off high-interest consumer debt because mortgage interest rates are generally lower and the interest is generally tax-deductible. When used properly, debt can help you accomplish your financial goals and make you more money in the long run.

Whether paying down debt sooner makes sense for you depends on a number of factors, including your other investment options and goals. Financially, what matters in deciding whether to pay down your mortgage faster is your mortgage interest rate versus your investments’ rates of return.

Suppose you have a fixed-rate mortgage at an interest rate of 6 percent. To come out ahead financially, if you’re making investments instead of paying down your mortgage more quickly, your investments need to produce an average annual rate of return before taxes of 6 percent.

While mortgage interest is usually tax-deductible, remember that you must also pay taxes on investments held outside retirement accounts. While you can purchase tax-free investments, such as municipal bonds, over the long haul, these investments won’t typically earn a higher rate of return than the cost of the mortgage.

And don’t assume that those mortgage interest deductions are that great. You automatically qualify for the so-called standard deduction on your federal tax return. If you have no mortgage interest deductions — or less than you used to — you may not be missing out on as much of a write-off as you think.

Paying off your mortgage faster has no tax benefit. Putting additional money into a retirement plan, however, can immediately reduce your federal and state income tax burden.

In order for you to have a reasonable chance of earning more on your investments than it’s costing you to borrow on a mortgage, you must be aggressive with your investments. Notwithstanding their horrendous slide in 2008-09, stocks have produced annual average rates of return of about 9 percent to 10 percent.

Paying down a mortgage ties up more of your capital, reducing your ability to make other attractive investments. Some people feel uncomfortable paying off debt more quickly if it diminishes their savings and investments. You probably don’t want to pay down debt if it depletes your financial safety cushion. Make sure that you have access — through a money-market fund or other sources, a family member, for example — to at least three months’ living expenses.

*Provided courtesy of Eric Tyson, author of "Let’s Get Real About Money!" and "Investing for Dummies''

Final score: $8,000 for homebuyers

First-time purchasers get a tax credit windfall if they buy before December.

By Les Christie, CNNMoney.com staff writer
Last Updated: February 17, 2009: 12:13 PM ET

NEW YORK (CNNMoney.com) -- There's a nice windfall for some homebuyers in the economic stimulus bill awaiting President Obama's signature on Tuesday. First-time buyers can claim a credit worth $8,000 - or 10% of the home's value, whichever is less - on their 2008 or 2009 taxes.

A big plus is that the credit is refundable, meaning tax filers see a refund of the full $8,000 even if their total tax bill - the amount of witholding they paid during the year plus anything extra they had to pony up when they filed their returns - was less than that amount. But there has been a lot of confusion over this provision. Adam Billings of Knoxville, Tenn. wrote to CNNMoney.com asking:

"I will qualify as a first-time home buyer, and I am currently set to get a small tax refund for 2008. Does that mean if I purchased now that I would get an extra $8,000 added on top of my current refund?"

The short answer? Yes, Billings would get back the $8,000 plus what he'd overpaid. The long answer? It depends. Here are three scenarios:

Scenario 1: Your final tax liability is normally $6,000. You've had taxes withheld from every paycheck and at the end of the year you've paid Uncle Sam $6,000. Since you've already paid him all you owe, you get the entire $8,000 tax credit as a refund check.

Scenario 2: Your final tax liability is $6,000, but you've overpaid by $1,000 through your payroll witholding. Normally you would get a $1,000 refund check. In this scenario, you get $9,000, the $8,000 credit plus the $1,000 you overpaid.

Scenario 3: Your final tax liability is $6,000, but you've underpaid through your payroll witholding by $1,000. Normally, you would have to write the IRS a $1,000 check. This time, the first $1,000 of the tax credit pays your bill, and you get the remaining $7,000 as a refund.

To qualify for the credit, the purchase must be made between Jan. 1, 2009 and Nov. 30, 2009. Buyers may not have owned a home for the past three years to qualify as "first time" buyer. They must also live in the house for at least three years, or they will be obligated to pay back the credit.

Additionally, there are income restrictions: To qualify, buyers must make less than $75,000 for singles or $150,000 for couples. (Higher-income buyers may receive a partial credit.)

Applying for the credit will be easy - or at least as easy as doing your income taxes. Just claim it on your return. No other forms or papers have to be filed. Taxpayers who have already completed their returns can file amended returns for 2008 to claim the credit.

Lukewarm reception
The housing industry is somewhat pleased with the result because the stimulus plan improves on the current $7,500 tax credit, which was passed in July and was more of a low-interest loan than an actual credit. But the industry was also disappointed that Congress did not go even further and adopt the Senate's proposal of a $15,000 non-refundable credit for all homebuyers.

"[The Senate version] would have done a lot more to turn around the housing market," said Bernard Markstein, an economist and director of forecasting for the National Association of Homebuilders (NAHB). "We have a lot of reports of people who would be coming off the fence because of it."

Even so, the $8,000 credit will bring an additional 300,000 new homebuyers into the market, according to estimates by Lawrence Yun, chief economist for the National Association of Realtors.

The credit could also create a domino effect, he said, because each first-time homebuyer sale will lead to two more trade-up transactions down the line. "I think there are many homeowners who would be trading-up but they have had no buyers for their own homes," Yun said.

Who won't benefit, according to Mark Goldman, a real estate lecturer at San Diego State University, are those first-time homebuyers struggling to come up with down payments. The credit does not help get them over that hurdle - they still have to close the sale before claiming the bonus.

One state, Missouri, is trying to get around that problem by creating a short-term loan on the tax credit of up to $6,750. The state would loan borrowers the money so they could use it at closing as part of the downpayment. Then, when the buyers receive their tax credit from the IRS, they pay back the state. Other states may follow with similar programs, according to NAHB's Dietz.

Many may look at the tax credit as a discount on the home price, according to Yun. A $100,000 purchase effectively becomes a $92,000 one. That can reassure buyers apprehensive about purchasing and then watching prices continue falling, he added.

And it provides a nice nest egg for the often-difficult early years of homeownership, when unexpected repairs and expenses often crop up. Recipients could also use the money to buy new stuff for their home - a lawnmower, a rug, a sofa - and, in that way, help stimulate the economy.

*Provided courtesy of CNNmoney.com

7 things to know about mortgage rate in 2009

It wasn't too long ago that mortgage rates were expected to move sharply higher in the coming months thanks to rattled investors and mounting inflation. But while falling home prices and jittery financial markets have done little to assuage investor fears, a number of recent developments have combined to create a decidedly optimistic mortgage-rate outlook for 2009. "The preponderance of forces that would typically operate on mortgage rates — the economic backdrop, the inflation backdrop and, in this case, government policy — are all pointing towards lower interest rates," says Mike Larson, a real-estate analyst at Weiss Research.


Rates have already become increasingly attractive. The average national rate for 30-year fixed mortgages fell to 5.57% in the week of Dec. 5, from 6.61% just seven weeks earlier, according to HSH Associates. Here's a look at where mortgage rates are headed in the new year, the forces that will be influencing them, and how consumers can take advantage of the trends.

1. 2009 rate outlook: Thirty-year fixed mortgage rates should begin 2009 at around 5.5%, says Keith Gumbinger of HSH Associates. From there, they will "wax and wane" in the 5.5% to 6% range, before closing out the year somewhere between 6% and 6.25%. "That's still very attractive," he says. "There is no reason to think that rates are going to go up so substantially so as to erode the marketplace." (However, should the economic outlook improve more quickly than expected, mortgage rates could trend higher, Gumbinger says. In addition, new government programs unveiled next year could alter the projection.)


2. Inflationary easing: With the global economy headed for what many expect to be a nasty recession, the inflationary pressures that looked so menacing in the summer have quickly dissipated. The government reported in November that the core consumer price index — a measure of inflation that excludes volatile food and energy prices — decreased by 0.1% in October from the previous month, a sharp decline from the 0.3% monthly increase posted in July. At the same time, crude oil has plummeted from more than $140 a barrel in the summer to less than $50 a barrel in December. When inflation eases, yields on government bonds—such as the 10-year Treasury note — tend to drift lower. And because 30-year fixed mortgage rates typically track the yields on 10-year Treasuries, the diminished inflationary outlook has helped pull rates down. "The sudden collapse in prices has changed things dramatically," Gumbinger says. "That was really one of the linchpins as to why rates finally did fall."


3. Recession: The National Bureau of Economic Research recently announced that the United States did indeed enter a recession in December 2007. While predictions as to the duration and depth of the recession vary, economists at Goldman Sachs recently revised their original forecast in the face of deteriorating economic news. "This deepens and extends the expected recession, bringing the drop in GDP close to the decline seen in 1982 (2.3% in our forecast versus 2.7% then)," the economists said in the report.


The recession is likely to put additional downward pressure on mortgage rates in two key ways. First, the economic contraction will work to stifle inflation. And second, it will support the ongoing "flight to quality," whereby investors move cash from more risky investments — such as stocks — to ultrasafe government securities. Such forces are already bringing yields on government bonds sharply lower. Ten-year Treasury yields fell to 2.66% during the week of Dec. 5, from 4.02% just seven weeks earlier. "You are seeing nominal Treasury yields at new multidecade and, in some cases, all-time lows," Larson says. "[This] should add downward pressure on mortgage rates as well."


4. Government action: The outlook for mortgage rates has also been influenced by recently announced government initiatives. In late November, the Federal Reserve announced plans to buy up hundreds of billions of dollars in debt and mortgage-backed securities from government-controlled mortgage finance giants Fannie Mae and Freddie Mac. The plan is designed to reduce Fannie's and Freddie's financing costs, thereby enabling them to pass savings on to individuals in the form of lower mortgage rates. The Fed has since suggested it may begin buying long-term Treasury bonds, which could bring 10-year Treasury yields even lower. These announcements triggered an immediate drop in mortgage rates and could continue to keep rates low in the coming months. And while the massive bailout initiatives that governments around the world are now undertaking will undoubtedly lead to renewed inflationary pressures, this impact is unlikely to materialize until 2010, Gumbinger says.


5. Housing market turmoil: The decline in home prices, coupled with rising mortgage delinquencies and foreclosures, has prompted investors to demand higher returns on their investments in securities backed by home loans. As a result, the spread — or the difference — between the yields on 10-year Treasuries and 30-year fixed mortgage rates has widened significantly. This spread expanded to nearly 3 percentage points in the week of Dec. 5, from 1.5 percentage points in the first week of June 2007, before the credit crisis struck. And with home prices expected to continue falling throughout at least the first half of 2009 — and mortgage delinquencies accelerating — this "risk premium" should remain elevated. "We're not going to get back to the same tight relationship between the 10-year [Treasury] bond and fixed mortgage rates any time soon," says Tom Vanderwell, a mortgage lender from Michigan. But despite this upward pressure, Vanderwell says he expects mortgage rates to finish 2009 somewhere between 6% and 6.25%.

6. Lending standards: Although mortgage rates are likely to remain attractive next year, not everyone will be able to take advantage of them. Many homeowners with adjustable-rate mortgages who would like to refinance into more affordable, fixed-rate home loans have negative equity, meaning they owe more on their mortgage than their home is worth. As a result, they will not be eligible for refinancing. Meanwhile, those looking to purchase a home will face a credit environment that is significantly tighter than in the housing boom days. In order to access today's most attractive rates, borrowers will have to be able to document their income, make a down payment and have good credit. Mark Hanson, a managing director who handles real-estate and finance research at the Field Check Group, says there aren't a great deal of potential homebuyers in the market today "who have jobs, two years of tax returns, [who] are qualified, and have saved a large enough down payment."


7. No rush: But even though rates may be low today, Larson says qualified borrowers shouldn't feel pressured to see their lender immediately. "This is a lot less of a situation where you've got a temporary spike lower that if you don't get out the door in 48 hours, these rates are going to be gone," Larson says. "This is more of a longer-lasting trend where — sure, you will see some fluctuations — but that the trend in rates is probably lower for a number of months."


By Luke Mullins, U.S. News & World Report

Wells Fargo economists see recession's end in late 2009

Wells Fargo economists see recession's end in late 2009

Charlotte Business Journal

The deepest and longest recession since the 1930s will end in the second half of 2009, Wells Fargo & Co. economists say in their annual forecast.

The third quarter of next year will be “better than expected” by many, says Jim Paulsen, chief investment strategist. “It’s like you’re at a cookout and you’re trying and trying to get your charcoal going and you keep squirting on lighter fluid, and all of a sudden it goes ‘poof!’ ”

Paulsen says “fear mongering” by government officials who were trying to sell the $700 billion Troubled Asset Relief Program in the fall made the situation much worse, freezing everyone in their tracks and bringing on “economic paralysis.”

Senior economist Scott Anderson predicts that housing will lead the way back. “One bright note is that the sector that led the economy into this morass is about to turn the corner, perhaps as soon as this summer, and will start to lead us out.”

The job market is now one of the worst in decades, with 3.7 million more jobs expected to be lost next year, Anderson says. That means 5.5 million jobs will be lost in this recession, twice as many as were lost in the 1981-82 recession, the second-worst since World War II.

Eugenio Aleman, senior economist at San Francisco-based Wells Fargo (NYSE:WFC), says he is concerned that injecting of hundreds of billions of dollars into the economy through the financial sector is not helping those who need it most.

“Current monetary policy will help only those households that do not need help — those that have plenty of money and have a stable job,” he says. “They will refinance, buy homes and consume. It will not help those who are struggling to make ends meet, or have lost their jobs or may soon lose them, because no financial institution is going to lend them money to buy a home, no matter what the interest rate is.”

He says the new administration will need to help those households through fiscal policy, with government spending that will create jobs.

Article provided courtesy of Charlotte Business Journal

What do you think?

Are you missing out on your opportunity to own a home and build your own equity?

Are Home Buyers Missing An Opportunity?
Foreclosures: Are Home Buyers Missing An Opportunity?
Posted By: Diana Olick CNBC Real Estate Reporter
cnbc.com
16 Dec 2008 01:38 PM ET

You'd think now would be a great time to buy a foreclosed property, but a majority of Americans don't think so. A new survey from real estate search site Trulia.com and foreclosure sale site RealtyTrac.com finds that only 47 percent of those surveyed would consider buying a foreclosed property, that's down from 54 percent last spring.

It seems that negative sentiment surrounding foreclosures is turning buyers off of what should be some of the best real estate investment opportunities in decades. The survey says 80 percent of adults are concerned with negative aspects, such as hidden costs, a potentially risky purchase process, home price depreciation and personal connection with foreclosure (not sure exactly what that last one means, just maybe that there is a social stigma attached to a foreclosed home I guess).

Now I have to take this report with a grain of salt because I'm a stat gal, and I happen to know that foreclosure sales are not only abundant, but they're on the rise. In Las Vegas, which boasts 30,000 foreclosures in 2008, two out of three home sales are foreclosed properties. In California, foreclosure sales are pushing up total existing home sales like never before. I've also been to several foreclosure auctions and there are plenty of bidders on hand.

You then have to pose the question: Who's buying foreclosed properties? Is it the average American that would have been included in this survey or is it largely investors and investment companies?

The survey also says that 75 percent of respondents expect a discount "of at least 25 percent on a foreclosure purchase," while 30 percent expect "a major discount of at least 50 percent" compared to a comparable home not in foreclosure. Housing Starts, Permits Plummet to Record Low

I'm a bit surprised that so many folks only expect a 25 percent discount. The bulk of foreclosed properties are in states with the largest price declines. If I were buying a foreclosed property, I'd be in at least the 50 percent discount window.
Questions? Comments? RealtyCheck@cnbc.com
© 2008 CNBC, Inc. All Rights Reserved

URL: http://www.cnbc.com/id/28256332

Article courtesy of cnbc.com

Are you missing out on your opportuinity to own a home and build your own equity?