ARMs (Adjustable Rate Mortgages): Most of the troubles in the current mortgage market are the result of adjustable-rate mortgages, which often feature very low introductory interest rates. Once the rate adjusts after 2 to 3 years, many homeowners can’t meet their monthly payments.

Nearly 2 million homeowners have ARMs that will adjust higher by the end of 2008. Of those, the Federal Housing administration estimates that 500,000 could go into foreclosure.—-Buyers, my advice to you is to understand the type of mortgage you are getting.

This weeks Hint will be on keeping the disturbances down: Potential homebuyers have a lot to take in, so minimize distractions.
1. Pipe in classical, jazz or soft rock music, but keep the volume low.
2. If possible, turn off the ringer on your phone during showings.
3. Keep cats, dogs, litter boxes and feeding dishes out of the way- preferably out of the home.

Mortgage lenders rely on the secondary markets to borrow money to make more loans. The problems started as subprime mortgages (loans given to customers with poor credit history) started going delinquent at faster rates.

The problems have spread to the broader mortgage market, making investors nervous about almost all types of loans that cannot be purchased by government backed loans (Fannie Mae or Freddie Mac).

Bottom line is that it is tougher to get a loan if you have blemishes in your credit. In addition lending standards stemming from the subprime crisis likely means fewer buyers, pushing down home prices.

Homeowner’s Insurance have soared across the state for all of us but, is worse for the owners of mobile homes.

I just read an article that reports that more that half of Florida’s 800,000 mobile homes are no longer covered by homeowner’s insurance. One reason is that the preimum is normally higher on mobile homes and many of owners cannot afford the premium and/or feel that the value of their homes does not justify the amount of their preimum they are charged. Another factor is that the insurance companies are wary of older mobile homes that lack the wind protection that is required after the 1992 Hurricane Andrew, which adds to the number of uninsured homes.

Due to the slew of investors and flippers driving up our real estate values in 2005, the Market has corrected itself in our area. Now in 2006 and 2007 the investors are gone. Home values are not soaring out the roof. I have seen some property reductions and creative purchases in order to close the deal. In the current market, if your property is priced correctly it will sell. Due to the fact that the buyer has more choices to consider, it may take a little longer than normal to move a property. I have had properties to sell in 2 weeks and others it took up to an year. Just in this unpredictable market I can only give my sellers a guess. The advice I can give Sellers is to listen to their Real Estate Agent, when it comes to pricing their properties.

Here are some suggestions that makes a listing more attractive to potential buyers:
*Place a big pot of yellow marigolds in the foyer - Yellow makes people feel comfortable.
*Give the trim around the front door a fresh coat of paint, covering up fingerprints and dings.
*Hang a small flag that says “Welcome”.
*Dribble a few drops of vanilla on the oven door and turn it to low. (It’s smell just like cookies baking).
*Fertilize the grass so it’s bright green.

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