THE LION IN MARCHOk, here we go again with more government programs to save Real Estate.  Attended a short sale class and I see short sales are on the MSN Home page. Will this help?  Not sure and here is why.  The lenders are going to have Realtors do Broker Price Opinions (BPO’s) on homes in trouble.  Well we all know some Realtors are a bit more optimistic than others and they may come up with a unrealistic price, for more commission or maybe to just get the listing.  Well if they do, guess what???  The home won’t sell because it is priced to high.  The lenders are trying to unload these bad loans and they will get “some” money from a short sale, if the investor or perhaps even the first time home buyer steps up to the plate or the investor thinks it may be a good deal.  If the big investor groups step in and by blocks of homes from the banks that may work, but I bet they will be buying at 10 cents on the dollar and not the BPO dictated short sale price.   

The loan modification program is not working to well so the outlook overall is grim.  Hate to be negative, but when I talk to more and more people who have been laid off, you have to be realistic.  The folks who lost their job are not going to be buying anything. 

Well what to do if you want to buy right??  Be an educated buyer, get with a good Realtor who is very realistic about market prices, have the Realtor show you sold comps, study the trends, and find out what you can do with the home once you own it.   

Here is another great tool for buyers if you have some time.  Look into the FHA 203-k program, it has been around for a long time and it allows you to borrow money to fix up a home and roll all of the costs into a permanent loan.   Give me a call or drop me an e-mail if you have any questions on this. 

What to do if you can’t make the payments or it is looking like you will not be able to make them in the future?  You are going to have to visit with some Realtors to find out what your home is really worth, and I would talk to at least 3.  Again, have them show you the comps of active and sold listings, time on the market, they have all the details to help in your decision.  If you are realistic about pricing and committed to preparing the home for sale, you may very well beat the short sale program, sell your home in a shorter period of time and maybe, just maybe, come out ahead.  Remember a well prepared home will have an advantage over a home that looks, and smells bad.  Accent the positive attributes of your home, every home has some advantage so use that.  

Newsletter link http://realtytimes.com/136/ScottScarboroughSincerely,Scott ScarboroughOwner/Broker Montrose-realestate.comIf you do not want to receive these e-mails, please let me know.