Chris Hayes Team

Recognizing Loan Modification Scams

Chris Hayes — Mon, 16 Jan 2012 22:44:11 +0000

The proliferation of loan modification scams over the past few years has made an already stressful situation for upside down homeowners even more treacherous to navigate. Here are six red flags that may indicate you are dealing with a loan modification scammer:

1. The company [or representative] asks for an upfront fee.

2. The company guarantees they can stop a foreclosure or get your loan modified.

3. The company advises you to stop paying your mortgage and pay them instead.

4. The company pressures you to sign over your deed or other paperwork that you don’t fully understand.

5. The company claims to offer “government approved” loan modifications.

6. The company asks you to provide personal financial information over the phone or internet.

For a more detailed explanation of each of these red flags as well as a wealth of information regarding loan modification scams, go to www.loanscamalert.org.

If you are having trouble making your mortgage payments, contact your mortgage company right away and see how they can help you. If you are trying to sell your home but owe more than it’s worth, you may qualify for a short sale. Contact me directly at 318-564-5295 and let’s discuss your situation.

Do you need to buy or sell a home? If you ARE considering buying or selling a home in Shreveport or Bossier in the near future, would you please keep us in mind? You can reach us directly at 318-207-SOLD (7653) Thanks!

Ramp Up Your Real Estate Investments for 2012!

Chris Hayes — Thu, 15 Dec 2011 21:24:06 +0000

With the New Year fast approaching, my team members and I have been busy setting our goals, creating our business plans and focusing on our mindset in order to make 2012 the best year we’ve ever had in our businesses as well as our personal lives. I would like to offer some encouragement to those of you keeping a watchful eye on the current economic climate. Instead of bemoaning the situation, look ahead and begin to contemplate this fantastic opportunity. This may be your chance to begin building your very own real estate portfolio. Who knows what the stock market will do, who knows if social security will even be around when it comes time for you to retire, but real estate is, well, real. Now is an ideal time to purchase investment property in Shreveport/Bossier: interest rates are at historic lows, home prices are declining and savvy investors are finding drastically discounted property at every turn. If you have ever considered investing in real estate – now is a great time to test the waters and find out if investing is right for you. As an experienced investor myself, I would love the opportunity to sit down with you and talk about what it takes to get started. My first piece of advice: don’t go it alone! Give me a call at 318-564-5295.

NOW is the Time to Buy or Sell a Home in Shreveport-Bossier

Chris Hayes — Tue, 06 Dec 2011 16:53:40 +0000

I’m frequently asked by potential home buyers, “When is the best time to buy?” In today’s Shreveport/Bossier real estate market, my answer is almost always “RIGHT NOW…and HURRY!” If you plan on remaining in the area for at least 3 years, then you’re likely better served purchasing a home rather than renting. As average apartment rental rates have decreased slightly, the decline has been moderate in comparison to home values, which have declined nationwide by 30 to 40 percent since the peak of the housing boom. If you enter the home ownership arena while interest rates are at an all-time low you’ll save boat-loads of bucks on your mortgage & interest payments instead of making your landlord rich.

Small rate increases spell surprising cost spikes!

Interest Rate	4%	5%	6%	7%	8%
Monthly payment and interest	$859	$966	$1,080	$1,198	$1,321
Difference in monthly payments		$107	$221	$339	$462
Total interest paid over the life of the loan	$129,364	$167,860	$208,509	$251,116	$295,480

*Based on the purchase of a $200,000 home with 10 percent down on a 30-year fixed-rate mortgage

As the previous chart indicates, when borrowing money at a mortgage rate of 4%, the principle and interest (P&I) portion of your payment is only $859 per month and the interest paid over the life of the loan would be $129,364. The 1^st payment would breakdown as follows: $600 towards interest and $259 towards principle.

Notice the difference one percentage point increase in the interest rate can make. Borrowing the same amount of money at 5% would result in a monthly P&I payment of $966 – that’s $107 more per month. Over the life of the loan, that would equal a total of $167,860 in interest paid – $38,496 more than if you borrowed money at 4%. Lastly, the breakdown of monthly payment in this scenario is $750 towards the interest and $216 towards principle – that’s $150 per month more towards interest and $43 less towards your principle. See how quickly that adds up over the course of a single year!

One more perspective: lenders use a debt-to-income ratio when determining the amount of money they will loan to a borrower. Let’s say a lender tells you that you qualify for a loan amount of $180,000 if borrowing money at 4%. If the interest rate were increased just 1%, then a lender would only loan you $160,080 based on your debt-to-income ratio – that’s $20,000 less you are able to put toward the purchase of your home. In Shreveport-Bossier, $20,000 can make a big difference in the size, age, amenities and location of the home you purchase. Amazing isn’t it?

Interest rates make a big difference in your borrowing power!

Interest Rate	4%	5%	6%	7%	8%
Loan Amount	$209,461	$186,282	$166,792	$150,308	$136,283

* Monthly P & I payment $1,000.00. Loan amounts based on a 30 year amortization.

If you could buy a home but are sitting on the fence because you think prices and interest rates will be lower down the road – shame on you…you’re flushing money down the drain.

If you need to sell your home and you aren’t sure if now is the right time, my advice to you is the same: sell RIGHT NOW and HURRY! If you’re selling a property, you want to get top dollar. Consider this: when interest rates are low it increases the purchasing power of the buyer. Let’s say you have a $200,000 property in today’s market. You have found a buyer who will put 10% down at 4% interest making the loan amount $180,000. If the interest rate were to increase just 1%, then the purchase power of that borrower just went down $20,000 and they can no longer afford your home. If the purchasing power of the buyer decreases then the pool of buyers who can afford your home goes down as well. If you are planning to move up into your next home, do it while interest rates are low. I’ve helped many home owners sell and buy in today’s market because it makes more sense to upgrade their home while keeping their payment nearly the same since their previous home had a higher interest rate mortgage. Even if you are concerned that you may take a hit on the sale of your property, you will most likely make that up with the purchase of your next home.

9 Reasons to List Your Home During the Holidays

Chris Hayes — Fri, 02 Dec 2011 19:26:34 +0000

Don’t wait, list NOW!

1. People who look for homes during the holidays are obviously much more serious buyers. The odds are higher for them buying.

2. Serious buyers have fewer homes to choose from during the holidays and less competition means more money for the sellers.

3. The supply of listings will always be increasing in January, therefore, there will be less demand for your home in January.

4. Houses show a lot better when they are decorated for the holidays, therefore, the more saleable it is.

5. Buyers are more emotional during the holidays, therefore, they are more likely to pay a price that you are asking for a property.

6. Buyers generally have more times to look at homes during the holidays than they do during other times in the year.

7. Some people have to buy at the end of the year for tax reasons.

8. You can still be on the market, get the exposure you want, and be restrictive about showing your home 3 or 4 days around the holidays.

9. You could sell now and extend the closing or the occupancy until after the first of the year.

Check out this recent survey conducted by Realtor.com for more information regarding listing your home during the holidays: Holiday Home Selling Survey

Shreve Island Neighborhood in Shreveport, LA

vickilandry — Wed, 31 Aug 2011 22:26:36 +0000

Just in case you’re not familiar, Shreve Island is a small neighborhood that sits right on the outskirts of the larger and often more familiar Broadmoor Neighborhood. It is generally thought to be the area bordered by E. Kings Highway, Shreveport-Barksdale Highway, Clyde Fant Parkway and Dixie Garden Drive. It is a lovely neighborhood consisting mostly of homes built between the 1950’s and 1970’s. The architecture is generally Ranch, but there are a few more modern style homes scattered through out. One of the more appealing aspects of Shreve Island is that the neighborhood elementary school is Shreve Island Elementary, the first elementary school in Caddo Parish to receive the U.S. Department of Education’s Blue Ribbon School Award. It is also Shreveport’s only year round school. Broadmoor Middle School and Byrd High School also serve this neighborhood.*

Shreve Island also boasts a beautiful library at its center as well as The Duck Pond, one of the city’s favorite parks. The Duck Pond runs between E. Kings Hwy and Old River Bayou and has lots of new playground equipment, covered picnic areas, public restrooms and of course, lots of ducks!

Home prices in Shreve Island can vary anywhere from $92,000 to $250,000 depending on the size and condition of the home. The average home price is around $148,000 or a little over $80/sf. The average number of days a home stays on the market for sale is 69 and the average list price to sale price ratio is 95.2% which is consistent with the city average.** Since the neighborhood consists almost entirely of older homes, finding a bargain that you can build “sweat equity” in is a possibility.

If you are interested in viewing homes for sale in Shreve Island or homes for sale in Shreveport or Bossier, please give us a call at 318-207-7653 or email us at info@chrishayesteam.com.

Information believed to be accurate but not guaranteed 8/22/2011 *Always confirm with Caddo Parish School Board prior to making an offer **Based on MLS data between 8/22/2010 and 8/22/2011. For a current market analysis, give us a call at 318-207-7653.

6 Things to Consider If Youʼre Relocating for Retirement

Chris Hayes — Mon, 29 Aug 2011 14:21:25 +0000

Unlike earlier generations of retirees who paid off their mortgages and retired in their family home, today’s Baby Boomers are looking to capitalize on home equity to enhance their retirement savings.

If you’re considering a “relocation retirement,” below are a few points that may inform your decision. Here are some discussions you should have before making any decisions about relocating, downsizing, or trading up:

1. Speak with your spouse or partner first, even if you think you’re both of the same mind. Don’t just assume that you’re in agreement.

2. Consider the cost-of-living in a different part of the country. There’s a pretty big swing between rural Florida and urban San Francisco, for example.

3. Consider whether your plans are realistic. For example, could you really live in a 1-bedroom after spreading out for years in your present 4-bed/3-bath?

4. How much will the ease and pleasure of retirement depend on family and friends? What are the pros/cons of moving nearer/farther away?

5. Consider the potential impact of capital gains if you have substantial equity in your home and speak with a tax professional.

6. Relocating to a more affordable area as well as to a smaller home is a strong strategy. But real estate values and property taxes can vary immensely by locale, even within the same state. Research thoroughly. Also, you want to spend significant time in the location to make sure its compatible with your lifestyle, pace, and interests.

I enjoy helping retirees navigate these decisions and would welcome the opportunity to help you if you’re thinking about relocation. Contact me at 318-564-5295.

How to Find out Which Schools Serve a Specific Address…

vickilandry — Sat, 27 Aug 2011 19:27:19 +0000

Here’s the quick and easy way to find out which schools serve a particular address. For Caddo Parish click here: http://www.caddo.k12.la.us/index-063009.cfm and then click on the flashing BUS STOPS sign. Be sure and call the school board to confirm once you’ve found the home of your dreams!

The link for Bossier Parish is broken at the time this post is being written so visit their website and hopefully it will be fixed soon! http://www.bossierschools.org/

How to Fight Your Property Taxes

vickilandry — Thu, 25 Aug 2011 19:02:46 +0000

What to do if the value of your house has dropped, but your taxes have not.

Ten Great Reasons to Buy a Home in Shreveport NOW!

Chris Hayes — Tue, 23 Aug 2011 14:36:37 +0000

It’s a great time to buy a home in Shreveport or Bossier City!

Check out the list below and then call us and let us show you the Shreveport and Bossier City homes for sale right now!

1. Quality of life – a home provides stability and security for you and your loved ones.

2. Pride of home ownership – it’s your personal haven and you are your own landlord.

3. Historically low interest rates – around 4.5 percent in the U.S.

4. Homes are ON SALE – it’s a buyers market and great deals are out there.

5. Appreciation potential – your home investment can grow in value.

6. Equity buildup and debt pay down – homeowners enjoy an average net worth of approximately $184,000 vs. $4,000 for renters.

7. Leverage – where else can you buy an investment of this magnitude with 3.5-10 percent down?

8. Tax deduction advantages – property tax and mortgage interest write-offs.

9. Tax exemption – up to $500,000 per couple or $250,000 per person on sale of a primary residence in theUnited States.

10. The real cost of renting – at $800 per month, with the average 6 percent rental increase per year, you will pay $126,536 over a 10-year period but have zero ownership of the property.

Advice from a Pro is Useless Unless You Listen

Chris Hayes — Mon, 22 Aug 2011 21:58:25 +0000

In a business reliant on many variables coming together within a short amount of time, stress levels and anxiety can mount when deals stall or worse, start heading south.

Just recently we experienced just such a deal. We were representing a buyer in the purchase of his very first home (we’ll call him Bill.) We were able to find the perfect home for him and negotiate the price and terms he was comfortable with. Bill had already spoken with his personal bank about acquiring a mortgage before we met and even had a pre-approval letter in hand. Not having done a deal with this small community bank, we began asking other agents in the office if they had any experience with them. As it turned out, a newer agent on our team had just recently worked with this bank and his exact words were “Run the other way!” After weeks of being strung along, his client was told that he didn’t qualify for the loan even after they had initially told him he was pre-approved. Fortunately this agent didn’t give up and took his client to one of our preferred lenders and that lender was able to get his client approved and even managed to close the deal within a couple of weeks. We shared this story with Bill but he would not budge and insisted on staying with his bank. Sure enough, through delay after delay and a full two weeks after the original closing date, his bank informed him that he did not qualify for the loan after all. By this time he was so disgusted that he decided he doesn’t even want to purchase a home now, he will just rent until he is able to save enough money to pay cash (which will take him years.) We feel terrible for Bill. He spent money on a home inspection and an appraisal and he has nothing to show for it except a bad taste in his mouth for the entire process. What Bill fails to see is that if he had only listened to our advice and contacted one of the lenders that we recommended, he could have saved himself so much time, money, frustration and ultimately disappointment.

It’s important to listen to the real estate professional that you choose to represent you. We are not omniscient, but we are in the “trenches” day in and day out and any Realtor who has been in the business a long time has seen just about everything. We know that choosing the right lender is of paramount importance; after all, they’ve got the money! Not all lenders are created equal and what one lender can’t do another lender can. We make recommendations based on our own experience and we are not compensated by the lender for our referral. We recommend affiliates who time after time have demonstrated that they will treat our clients respectfully, get them a fair deal and get the job done. The home buying process isn’t always smooth sailing and issues can come up, but finding a quality lender who knows what they’re doing can eliminate a ton of hassles along the way.