Vicky Chrisner

Christine... I wish I could say you were the only one. At least your bank did "something".

Please go to my web site http://(www.VickyChrisner.com) - click on News You Can Use, and scroll down to the April postings. There are several links and organizations listed there that can help prevent foreclosure. If none of that works, have you considered a short sale? Read the blog post below and decide if it's worth looking into. If you'd like to consider that, and need a referral to an agent in your area, please feel free to contact me directly. (vchrisner@kw.com 703-669-3142).

Lastly, do not pay anyone a fee to help you lose your house, unless it is a success fee (like an agent would get for helping you negotiate and CLOSE a short sale). You can lose your house all buy yourself and keep the $1000.

You seem so sweet. I am very sorry this is happening to you.

Remember, God never said life would be easy. He said it would be worth it.

Have faith. - Thu Oct 9 2008, 20:14

remember that the owner is still the seller - not the bank. if you are trying to find out if your offer is acceptable to the seller, ask the listing agent. then ask the follow up question about the process. Contrary to common understanding, the seller does care what the offer is, because the seller could still be on the hook for any deficit beyond the sales price. So, let's say there's a house listed for $300k, someone else offers $250K cash... then you come along and offer $280K with a financing contingency. The bank may like the cash deal; the seller may like yours better. The seller does not have to present more than one offer to the bank for approval. So, focus your negotiations on the seller. Good luck! - Thu Oct 9 2008, 20:08

Probably talking about this -
1-888-995-HOPE A HUD-approved counselor affiliated with the non-profit Homeownership Preservation Foundation is available 24/7 to help you examine options. These counselors will help you understand opportunities that might be available to you to help save your home; and they’ll even talk to the bank on your behalf. NeighborWorks http://www.nw.org

This and more information is available under NEWS YOU CAN USE on my web site - scroll down to the April postings, I have lots of foreclosure prevention stuff there. - Thu Oct 9 2008, 20:04

Kevin - I see you're in Chantilly now, and it seems like you want to get closer "in". I'd love to talk with you to learn more about what you have in mind. You can search the MLS directly at my web site (click "home search"), and after we talk, I'd be happy to run listings for you. You should be able to find something in your range. I have not had a client use NACA, but it seems to be growing in popularity. I have a great lender for first time home buyers, and she knows ALL the ins and outs of the various programs. You can reach me directly at 703-669-3142 vchrisner@kw.com - Thu Oct 9 2008, 19:58

You make good points, and here are a few stats to ask a local agent for....
* Compared to 10 years ago, what has the average local appreciation been in Sam Ramon? (Be sure you're looking at specific examples of something similar to what you might buy. You want it to be 5% OR LESS, because that is what is sustainable.
* Compared to the same time last year, what's the activity level (closed sales)? If you have several months in a row that trend upward, that is a sign that prices have dropped enough that they are affordable again and that buyers can't resist any longer.
* What is the most recent trend with pricing and inventory - going up or down (it's never actually stable)?

It's impossible to time the market - you'll lose every time. I recently got an email from a company that does financial planning which said - "everyone's calling and asking what they should do and what will happen next. The truth is, we're not sure either. Our best advise is this - make no decisions based on fear, panic or greed." That's good advice to take. True investments take time and sacrifice.

Whenever you're thinking of buying a home for your family, consider the information in this post: - Thu Oct 9 2008, 13:18

Your average might be correct about people moving every 3-5 years. Not everyone should own. If you told me you wanted to buy, but not be in the home for more than 5 years, I'd tell you to rent. HOMEOWNERS move, on average, every 7 years.

Some people are more transcient - and we all are at some point in our lives. I moved around a lot when I was first out of high school... but settled in early because I started my family early. I live just outside DC, and we're spoiled here. There is no need to go elsewhere for a job. My family is here, and I will never leave this area.

The problem we have now is because the Clinton administration said we needed to have 70% of Americans be homeowners. The natural balance sits at just above 60%. After pressure from Clinton, Fannie and Freddie losened the guidelines and then the frenzy began - and then costs of homes exceeded the 5% reasonable appreciation level and they had to come down. Now, at least where I am, they are in line with that level, and activity has been increasing. The recent headlines are scarying some people, so we might see a dip until after the election, but I think we are at about our "bottom", for the most part. Again - that is LOCAL, and is certainly NOT the case in many markets.

Remember, when prices are low its a good time to buy, but it is a commitment and you must be willing to stay the course if it's not a good time to sell when you're ready. If you don't have that flexibility, then you are in trouble in today's market. I am sorry for the many people who are experiencing problems... I know there are great people who made reasonable decisions and unforeseen circumstances have them stuck chosing between bad and worse. I wish that wasn't the case. But, when you look at the HISTORY - and I do mean long term (anything you finance for 30 years is supposed to be a long term commitment), then buying is always a good decision. But, you don't reap those rewards for several years.

If I didn't believe, sincerely, in homeownership in a wonderful investment in yourself, your family, and your community, then I could not do my job everyday. However, I don't paint a rosy picture - I tell people what they are getting into, the good and the bad. Just ask my clients, you'd see. Recently, I was at a party and ran into a client who bought 2 years ago. They said - "this house you sold us. It's expensive, and a LOT of work. We have 6 acres to mow every week and a garden to tend to, and we still have to go to work so we can make the money to pay the payments every month. It's exhausting. Some times we barely even talk to each other at the end of the day... we're so tired..... It's everything you said it would be! Thank you, we couldn't be any happier." They are also not married - and I gave them THAT lecture, too. I told them I didn't know why they lived together and weren't married, that I didn't care. But, that if it was fear of commitment, they probably shouldn't buy a house together. Living together and owning a home and then trying to split up is HARDER than if you are married and rent. They still bought the house... and haven't gotten married or even set a date yet. It works for them. Who am I to judge?

In any case... I am just trying to show you that one sound bite is just that. It does not show a whole picture. I know it is hard today - the news that the sky is falling is everywhere around us. Everyone is affected. But, the only thing constant in life is change - and it will soon be sunny again. Hang in there.

Best of luck to you. - Thu Oct 9 2008, 09:47

Concerns about lending are different than concerns about buying. They usually happen in the same transaction, but they are separate transactions. You have valid concerns on both accounts... but let's separate them, maybe it will clear your head:

Purchasing... when I bought my first home in 95, it was a rough market (although this one is more complicated, I will admit) - I knew the value would go down when I bought. It did, but it bounced back - it always does. When we bought we worked in Property Management and had an apt for $400 a month (vs. $850 market rate). It was a nice apt, but 2 bedrooms, we wanted more space, and something of our OWN. The marketing people had big campaigns "it's cheaper to own than rent"... and I told them not to waste their breath, I didn't believe it and we were buying anyway. We didn't buy as an "investment" we bought for our family, we were raised that it is what you do. We bought that house VA - no money down, and an ARM, to boot! We lived there for 5 years, sold. Our monthly payment was $1200-1300 (including taxes and insurance). We were terrified of that payment. The interest rate started at 6.5% and went up to 7.25 and then started declining again. I calculated the tax savings, the costs to own, appreciation, etc. when we moved - guess what - we had lived there for 5 years for FREE! It turns out, for us, it was cheaper than renting.

Then we took the profit and rolled it into the house we live in now. We focused on paying down our mortgage, like I was always taught to do. We only refinanced when the interest rates dropped so low we couldn't ignore it - and we DID NOT do a cash out. Currently, our home is worth about $450K, and we owe about $220K. That's not bad considering we started NO MONEY DOWN. Our monthly payment is about $1200-1300 for P & I (total payment is roughtly $2K). Today, my college sons are paying over $1K to rent a 2 bedroom apt - and they are not nice places.

When I took my licensing courses around 1990, they told us the historical national average was 3% of appreciation per year. By 2000, they were saying 5%. I did a calculation the other day... the house I am in, I purchased for $300K - at 5% per year, the value would be at $443K. Pretty close... don't you think? Admittedly, it makes me a little sad when I realize that for the first 5 years, it was appreciating at a rate of 15%, and now it is declining 10%... but the reality is that it is just back to where it really should have been. But, who cares? Not really me... a little, but I am not moving, so it does not matter. And, for the long haul (I am always conservative), if I get an average of a 3% return, I will fell just fine about it; and I am certain that I will. More importantly, I have frozen my monthly mortgage payments - and in a career that is commission only, knowing that we can afford the payments on my husband's salary is very comforting. If I was renting, I would not be able to say that. And, if on of us was to pass away, our life insurance could pay off the mortgage - and we could support our 2 small kids (yes, 4 total), easily without having to worry about a mortgage payment ever again. Both of my parents (divorced) own their properties free and clear. THAT is why you buy - lifestyle, freezing your monthly payments, and eventually owning something worth owning.

Now... as for the mortgage meltdown - hard to say where we're going from here... but it is a mess. Some of it will impact home values - and that is very regional, so I can't say anything about your area. It will not last forever. We have people - lots of them. They need housing. I learned this in Kindergarten - 4 basic needs of a human... water, food, clothing and shelter. It's not a luxury, people need it. Our population is growing - none of the experts I've heard are predicting that our population will be shrinking, and none are predicting that humans will start living like nomads again, even so - nomads need to have land rights. So, it WILL bounce back. And, when it does, if you own, you'll be glad.

It may start to get even harder to get a loan - it could be that you might not qualify now. Have you talked to a lender? Many people are not able to get loans today that could have a year ago. You might have to start preparing to buy a year or more in advance. In any case - I certainly don't ever recall interest rates being this low before. That actually ADDS to the value proposition of buying... it does not detract from it. You can lock in a fantastic interest rate RIGHT NOW - and it will be good for 30 years. Surely, you know that the value of your property will go up in the next 30 years, right? Imagine freezing your mortgage payment now - low prices, low interest rates. It is the "perfect storm" - and those who continue to sit on the outskirts will look back and think "wow - I wish we'd bought then". - Thu Oct 9 2008, 05:37

No idea about that market... let me give you another sound bite...
"1 in 3 properties in the US is owned FREE AND CLEAR - with no mortgage at all." How can they do that? Long time ownership. How long do you plan to own? If you are thinking of buying and selling within 2 years, don't even think about it. If you're looking for a place to "settle in" - don't try to time the market, buy when its right FOR YOU. - Wed Oct 8 2008, 19:41