Picayune MS Real Estate – Pearl River County Homes

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by Michelle Fradella, Broker – Pinnacle Real Estate Services

With the market changing drastically over the past few years, there is a new question that must be asked – “Can you, Mr/Mrs Seller, afford to sell your home?”  Now this question may be a bit alarming to some people, but the fact of the matter is sellers are finding that the market is not able to sustain the amount of money they owe on their homes (if they have refinanced in the past 5 years), and they may not be able to get enough for their home to actually close without bringing money to the table.

Many sellers may have heard about, and think they are in the position to consider a “short sale”, but unfortunately not everyone realizes the intricacies of doing one.  It’s important for a seller to notify their Realtor AT THE TIME OF LISTING, that they will come short of the amount they need to pay off their loan, and will need to ask the lender for the possibility of a short sale.  Keep in mind, however, that the lender is never, in any way, obligated to actually take less than what is owed on the house, and that there are specific circumstances that must be present, in order for this to be considered.

A short sale is not something that can be handled overnight, either.  The process will all depend on many variables that are not the same in each case.   A short sale can take as short as a few weeks, or a few months, to over a year to get approved.  A buyer may not be willing to wait for you to get that approval, or their lender may not let them wait, either.

Another important factor to know is that (even if you are in the process of working a short sale with your lender, and have a buyer ready to buy) if you don’t make your regular payments to your lender, they can, AND WILL, foreclose on your home.  If you aren’t able to make the payments during this time, your Realtor needs to know this, so they can also be in touch with the Foreclosure Department for your lender, and communicate with them constantly to assure that the house isn’t taken in foreclosure.  It’s standard practice that the foreclosure department and short sale department of a lender do not communicate with each other, and things can go wrong very quickly.

When putting your house on the market, you have to disclose to all Realtors and parties that your home can only go to closing if the lender approves a short sale.  You will also need to get all the contact information for your lender to your Realtor so they can be in constant contact with the lender to assure that things are moving in the right direction.  Be aware that not all Realtors are experienced in the intricacies of short sales.  It’s very important for your Realtor to know and understand the process, to be able to assist you in the best way possible.  Look for a Realtor that has the “SFR” designation (Short Sale and Foreclosure Resource).

Remember to always disclose to your Realtor, up-front, what your true situation is, and be prepared to be in the process for the long haul.

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Buying a home is often a stressful process, because it is usually the single largest purchase of your life. Even if it isn’t your first house, it’s easy to make a mistake that costs you hundreds or thousands of dollars. Here are three common mistakes to avoid.

1. Paying Too Much

This isn’t about over-paying for a particular home. That mistake is tough to make if you will be borrowing to buy. An appraisal will be done, and the lender will probably refuse to lend enough for you to buy an over-priced house.

The common mistake here is following the advice of real estate agents, lenders and even your friends and family, who will often encourage you to buy a more expensive home than you can afford. They may call it an “investment” and claim that real estate always goes up in value, so you should get as much as you can. Of course, recent history shows that home values don’t always go up, and this kind of thinking has a lot of families facing foreclosure now.

Buy what you feel comfortable with. If you can’t easily make the payments, even after a short layoff from work, you may be overextending yourself. And watch out for lenders “solutions” to this problem (see number 2).

2. Trusting Lenders

I am not suggesting that lenders are all out to get you, or that you should look at them suspiciously, but they are not necessarily looking out for your best interest. That’s your job. Their’s is to sell loans. Buying a home normally requires buying a loan too, and as we can see now (2008), many loans are not suitable if you want a secure future. While there are sometimes good reasons for interest-only, adjustable-rate, and zero-down loans, most of the time these should be avoided.

Never mind what a lender recommends or suggests. Ask him only for facts, and do your own math. If the rate on your loan goes from 5% to 10%, what will the payments be? Can you easily afford that? If not, you are taking a risk that may not be justified.

3. Trusting Real Estate Agents

When you are buying a home, the real estate agent who helps you, like the lender, has his own agenda. It isn’t that he or she doesn’t wish you the best, but they wish even more for their own families, so the primary goals is to sell something. Also, unless the agent is explicitly working for you, she has a fiduciary responsibility to work against you if that is what is best for the seller. In other words, if she thinks you will pay more because of a comment you make, she must pass that information on to the home owner.

Even a buyer’s agent can be biased. It is nice to think that they are working for you, but they still only get paid (typically) when a sale is made. That’s a pretty motivation to push you into a home fast, whether or not it’s the best one for you.

Pay attention to whether an agent is really showing you the houses that suit your needs, rather than the ones that he or she would buy. Many real estate agents don’t listen very well, and will show you what they think you want, rather than asking you more questions. They can lead you to buy a house that doesn’t suit your needs or costs more than you want.

One final note about real estate agents: They are not experts on all things. In fact, some are barely an expert on anything. I have met agents who didn’t understand a simple seller-financing offer, and others who suggested that cracks in foundations were “no big deal,” though they knew nothing about construction. Unless an agent has specific experience in an area, take what they say with a grain of salt, and seek out other counsel.

Buying a home that actually is right for you starts with avoiding the three mistakes above.

Welcome to the Pearl River County Homes Website.  Here you will find a lot of useful information about the Picayune, MS, area.  There is neighborhood information for Picayune, Carriere, McNeill, and other areas of our Pearl River County.  You can also search ALL properties for sale, no matter what company has the listing.

Buying a home can be a stressful situation.  You want to make sure you find the home that will fit your needs, be in an area that won’t depreciate your equity over time, and get the best price for your situation.  You need a consultant to guide you through the process and make it an easy transition for you and your family. When you are looking at Picayune MS homes for sale, you need someone to look out for your best interests.

The Picayune and Pearl River County area offer great properties within commuting distance of New Orleans, and the John C. Stennis Space Center (NASA).

Click a link to the left to search properties, check out neighborhood information, and get information on the buying and selling process.