Real Estate Information Center

Q: Hi. Are there set rules for mortgage modifications. I get different answers depending on who I talk to.

A: Great question. There are some questions in real estate where a good real estate should say, “I don’t know.” Until now this was one of those questions. I say ‘until now’ because the current administration’s housing plan addresses the issue of homeowners who can’t afford their monthly payments because of a number hardships. This plan encourages lenders to modify homeowner’s mortgages who fall under the definition of hardship.

And therein lies the rub. The definition is loose at best and includes such things as ARM payment increase, lost income and increased expenses.

The bottom line: an approved mortgage modification would reduce the current payment to 31 percent of before-tax income of the mortgagee. These adjustments would hold for five years in most cases, and after that the lender is allowed to raise the rate by 1 percentage point per year until the rate is close to the prevailing rate during the week that the loan modification was approved.

Continue reading ‘Real Estate Q&A March 2009 – Mortgage Modification Update’ »

The main differences between a real estate agent and a real estate broker are the licensing, education, and experience required for each. Both real estate agents and brokers are required to be licensed by the state government they are in, but the licenses for each have different requirements. Licensing requirements for both agents and brokers vary from state to state, but most state governments require that a minimum number of classes are taken before a person is able to take the licensing test. The educational requirements for brokers are higher; and the state generally also requires them to work as a real estate agent for several years before being allowed to take the exam.

Generally if a person is interested in buying or selling property of some kind, an agent is the one who you will be interacting with. They are required to be licensed by the state they are working in. They are also required to work under the supervision of a real estate broker; they are not allowed to work independently. Agents are able to perform most of the basic tasks that a buyer or seller might need. These tasks include finding potential properties for a buyer, or buyers interested in a property for a seller and negotiating between buyer and seller to help them come to a sales agreement. They have access to many of the same resources as the broker they work for. Real estate agents do not actually form contracts themselves however, any contracts they help form are actually between the buyer/seller and the broker that they work for.

Continue reading ‘The Difference Between a Real Estate Agent and a Broker’ »

Foreclosures Are at All Time Highs! House Prices Are Crashing! No More Zero Down Loans! No Doubt you’ve seen these headlines and many like them. It seems like there is nothing but increasingly bad news on a daily basis about the real estate market. But one difference that tells the prospering real estate investor, the real estate “heavyweight”, from the small timer is his ability to stop looking at the market as a passive observer and start understanding where the new opportunities are. And let me tell you, there are numerous opportunities in this new real estate bubble!

“But,” disbelieveers say “the real estate bubble burst already!” Yes, values peaked out and then fell, lenders are getting tight with loans and the availability of pre approved buyers has shrunk. You’re correct, THAT bubble HAS burst. But like the fabled phoenix from the fire a NEW world of real estate has been produced, and it’s filled with new possibilities if you know how to look for them!

Continue reading ‘How Real Estate Heavyweights Discover Opportunities in the New Real Estate Bubble’ »

When it comes to buying yourself a home, you want your home to be in a place that you would like to live for a certain period of time. In order for you to get the home that you want you are going to need to get yourself a real estate agent. Now, you can choose an agent from a couple different real estate groups, but which ones are the best? And which ones will work the hardest to get you your dream home?

We all know about the big real estate groups that have gone completely corporate. These are real estate chains; they have offices all over the country. When you begin thinking about a home, you need to think about who is going listen and work for you? You can get this experience from a big real estate firm, but it may not be on a level that is suited for you.

So why not take it a step down and go local? There are many independent real estate firms that you can choose from. Most of these smaller firms have a bit of a more personal touch. You can get a personal touch with a larger firm of course, but it will not be as common.

Continue reading ‘Differences Between Real Estate Groups’ »

Even though hurricane Katrina and other natural disaster have discouraged many investors from purchasing Louisiana real estate, there are several characteristics of the state that make it valuable and attractive to more and more buyers every year.

Price
One of the most attractive features of Louisiana property is affordability. For example, compared to real estate listings in other coastal states like California, New York, and New Jersey, real estate prices in Louisiana are usually half the price, or lower. And, whether you are looking for condos, townhomes, single family homes, commercial property, or an empty lot for building, there are a lot of listings to choose from.

Atmosphere
In addition to the attractive price tag on Louisiana real estate, Louisiana is an attractive place to invest because of the subtropical climate, lush scenery, fertile soil, and bountiful waterways that make the state both beautiful and productive. And, if you enjoy sampling the food and traditions of different cultures, Louisiana is a wise choice again because of the many different ethnic groups that settled the area and still have a strong presence in cities like New Orleans and Baton Rouge.

Continue reading ‘A Brief Overview of Louisiana Real Estate’ »