Although the economy has been a catalyst for many issues, some of the trickle-down effects have had positive effects on Brooklyn homes. One of the most notable is that families are drawing closer together.

Over the past thirty to forty years, the “steps” to take for growing up were always one, grow up and two, move out. Few parents ever considered that their now adult children might be moving back in to their quiet, empty Brooklyn homes. However, with the economic problems hitting millions of Americans, the number of multi-generational households is growing.

During the Great Recession and more specifically in 1940, approximately 25% of households were multi-generational. Homes often held children, grandchildren, and sometimes even great grandchildren – four familial generations. However, as the U.S. economy began to prosper and the baby boomer generation grew into adults, more homes became single family households. By 1980, only 12.1% of homes held more than one generation.

Now, the percentages are once again beginning to climb. Loss of jobs, foreclosed homes and lack of security has contributed to approximately 49 million Americans, or 16.1%, living in multi-generational homes. While this is far from ideal for those in a hurry to leave the nest, the benefits are many.

I once asked a single mother what it was like moving back in with her parents.  She said, “It was hard at first, redefining the boundaries, but having my parents around has been a blessing in disguise. My kids have a stabilizing influence and extra attention, while I get occasional breaks that I normally wouldn’t get. We eat dinner together too, which helps build the family atmosphere for my kids. It’s not all smiles and roses, there’s a lot of compromise, but it works.”

For those who have been thinking about letting your family move in to your Brooklyn home, try to consider more than just the negatives. Look at the positives as well.  And what could be more positive than closer family ties?

Whether you need to upgrade to a bigger family home or downgrade to a smaller one, I can help. Call Charles D’Alessandro of Fillmore Real Estate at (718) 253-9600 ext.206 or email me at charlesdalessandro@fillmore.com for more information.

Charles D’Alessandro

charlesdalessandro@fillmore.com
tel 718 253-9600
fax 718 253-9573

According to RealtyTrac, 1 in 70 homes have received foreclosures notices since January, 2010 – a total of 1.7 million houses in the U.S. Was your Brooklyn home one of them? In previous blogs, we’ve covered several ways to avoid foreclosure, but a rising trend has brought another possibility to the forefront.

According to a recent Pew Research Center study, many individuals are surviving the economic blues by expanding their households. By the end of 2008, more than 16%, or 49 million, of Americans lived in a household with more than one generation. Although the statistics aren’t back yet for 2009 -2010, experts expect the numbers to be even higher.

These Americans aren’t all young college graduates moving back in with mom and dad, either. Parents have moved in with children, children with parents – somehow, even siblings have managed to live together in relative harmony. This trend spans across the board from single parents to elderly grandparents. According to the report, approximately one in five adults ages 25 to 34 and 65 + live in a multi-generational home.

Are you suggesting I let family members move in?

Actually, yes I am. Now, depending on your family dynamics, I realize this might be the equivalent of inviting World War III to your doorstep. However, if you face losing your Brooklyn home to foreclosure, you might at least stop to consider the possibilities. For instance:

• More working people in the household means more ability to pay the mortgage and stop the foreclosure.
• With more family members, you have a stronger family influence on children living in the home.
• With more people, responsibility is shared more.  You won’t need to do everything on your own.

No, it’s not an ideal situation. However, if you’ve said, “I’d do anything to keep my home,” did you mean it? Does the definition of “anything” include family World War III? Could you sit down with your family members, work out a set of compromises and live in harmony? If you’ve tried everything else, this may be your best bet for avoiding foreclosure on your Brooklyn home.

You never know; you may even come to like it.

If you’re looking for a home to support a multi-generational household, I can help. Call me at (718)253-9600 ext.206 or email me at charlesdalessandro@fillmore.com for more information.

Charles D’Alessandro

charlesdalessandro@fillmore.com
tel 718 253-9600
fax 718 253-9573

Brooklyn Real Estate Blog Downsizing Your Demands for a Home for Sale in Brooklyn

When you look for a mortgage, you want to find one that allows you to buy the biggest house possible for a monthly payment you can afford. This seems simple enough. All you need to do is a little division to determine your monthly payment.

Unfortunately, this isn’t the entire picture of your monthly mortgage payment, and lenders don’t always explain this to you. Here are three things you need to know about your monthly mortgage payment for your new Brooklyn home:

1. Interest and Principal. Only part of your monthly mortgage payment actually pays down your loan. A portion of your mortgage payment goes toward your loan principal and part of it pays the interest. The longer you have your loan, the more money goes toward your principal. Be aware that at the beginning of your loan term, most of your payment goes toward interest and does little to reduce the amount of money you owe on your home.
2. Homeowner’s Insurance and PMI. Typically, your lender collects money to pay your homeowner’s insurance premium. This increases the amount of your monthly payment and can change if your insurance company raises or lowers premiums. Depending on your loan amount and property value, you may also have to pay private mortgage insurance (PMI) which protects a lender against loss if you default on your loan.
3. Property Taxes. In most cases, your annual property taxes will be paid through your lender. The lender collects extra money each month that they pay to your local government at the end of the year. When local taxes increase or decrease, so does your payment.

Call me today at (718) 253-9600 ext.206 or email me at charlesdalessabdro@fillmore.com to help you find the home (and mortgage provider) of your dreams.

Charles D’Alessandro

charlesdalessandro@fillmore.com
tel 718 253-9600
fax 718 253-9573

Brooklyn Real Estate Blog 10 Things to Do While Waiting for Your Brooklyn Home to Sell

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If you’re a homeowner who is unable to refinance to a lower interest rate because your Brooklyn home’s value has decreased, there’s hope.

If you have questions about HARP or any other questions about Brooklyn homes, please give me, Charles D’Alessandro of Fillmore Real Estate a call today at (718)253-9600 ext.206 or email me at charlesdalessandro@fillmore.com.

Charles D’Alessandro

charlesdalessandro@fillmore.com
tel 718 253-9600
fax 718 253-9573

Brooklyn Real Estate Blog 10 Things to Do While Waiting for Your Brooklyn Home to Sell

A past filing of bankruptcy does not mean you can’t buy Brooklyn real estate.  Your real estate agent may be able to help you get a mortgage or find other ways to buy a home, if you do get turned down for a traditional mortgage.

Before you meet with your Brooklyn real estate agent, here are a few ways to prepare:

• Have a copy of your current bank statement
• Have written proof of your monthly income
• Make a list of all your current monthly bills
• Collect all your recent credit card statements
• Have a copy of your bankruptcy agreement

Put all this info in a file folder and take it to your meeting.  Your Brooklyn real estate agent will appreciate you doing your homework!

If you have straightened out your credit since the bankruptcy, you are in a much better position to get a mortgage. Hopefully, you are currently paying all your monthly bills on time and rebuilding your credit rating.

The bigger your down payment, the easier it will be to get a mortgage.  So, where can you get money for a down payment?

• Have you been having money taken out of your checks and put into a savings?
• Do you have any money market accounts?
• Do you have money invested in mutual funds?
• Do you have certificates of deposit about to come due?
• Will you be receiving a bonus from your employer?
• How about a friend or relative who would loan you the down payment?

Hopefully, you are now ready to go shopping for your new home. To get started, give me a call today at (718) 253-9600 ext.206 or email me at charlesdalessandro@fillmore.com

Charles D’Alessandro

charlesdalessandro@fillmore.com
tel 718 253-9600
fax 718 253-9573

Brooklyn Real Estate Blog 5 Tips to Creating Stress-Free Brooklyn Homes

On June 16, the Senate approved a plan to give home buyers an extra three months to finish qualifying for federal tax incentives.  If the plan passes, it means you’ll have until September 30, 2010, to close on your Brooklyn home and qualify for tax credits of up to $8,000.  (First-time buyers were eligible for a tax credit of up to $8,000. Current owners who bought and moved into another home could qualify for a credit of up to $6,500.)

Who Qualifies?

Originally, you had to sign a contract to purchase a home by April 30, 2010, and close no later than June 30, 2010.  With this extension, anyone who had a signed purchase agreement by April 30 would have until September 30 to close on the sale of that home.

Why the Extension?

Mortgage lenders have been swamped with borrowers trying to get their Brooklyn home purchases approved by June 30.  Many potential borrowers are having difficulty meeting that deadline.

The National Association of REALTORS® (NAR) estimates that 180,000 buyers are likely to miss the June 30 deadline “because of delays in the process.” That’s particularly true of short sales, the NAR noted.

Is it Approved?

Unfortunately, an extension of the deadline for the federal homebuyer tax credit remains tied to Senate legislation that would extend unemployment benefits, complicating efforts to get the deadline extended before the expiration date of June 30.

But don’t give up hope.  If lawmakers extend the deadline after June 30, the language in both the House and Senate bills will apply retroactively.

Have questions about the federal tax credits?  Or any other questions about Brooklyn homes?  Give me a call today at (718)253-9600 ext.206 or email me at charlesdalessandro@fillmore.com  I’ll respond promptly and personally.

Charles D’Alessandro

charlesdalessandro@fillmore.com
tel 718 253-9600
fax 718 253-9573

Brooklyn Real Estate Blog Brooklyn Realtor Charles D’Alessandro of Fillmore Real Estate Presents

Did you know that cash could be hiding in your Brooklyn condo?  If you are sixty-two or older, you may be able to qualify for a reverse mortgage, and never have to make a mortgage payment as long as you live in the home.  Let me tell you a little more about a reverse mortgage:

What Is A Reverse Mortgage?

A reverse mortgage uses the equity in your Brooklyn condo to make payments to you.  You aren’t required to make any payments for as long as you live in your home.  The loan doesn’t become due until you have not lived in the home for at least twelve months.  Your home can pass to your descendents if they refinance the loan themselves.  The money can be used for any purpose you want.

Funds are received as a lump sum, a line of credit, or a monthly payment.  You’ll have access to more money with the line of credit, but the interest rate is variable.  If you decide on a lump sum or a monthly payment, you will have a higher interest rate.  The line of credit can be a credit card or like a checking account.  You can buy groceries, gas and pay your bills out of this account.

The reverse mortgage process is similar to the conventional mortgage process.  The property will need an inspection and appraisal.  There are origination fees and closing costs associated with this type of loan.

Who Qualifies for a Reverse Mortgage?

The first requirement is age; only those sixty-two or older are able to qualify.  There are no income or credit requirements to be approved for a reverse mortgage.  Some lenders even let you roll the down payment and closing costs into the loan, so that you don’t have pay any money up front.

The loan is based on the age of the youngest borrower.  The older you are, the more money you will qualify for.  The good news is that the money will not affect your Social Security benefits or Medicare.

There are advantages and disadvantages to a reverse mortgage, so be sure to do your homework before making this important decision.

If you have questions about reverse mortgages, or would like to discuss buying or selling a Brooklyn condo, give me a call today at (1718)253-9600 ext 206 or email me at charlesdalessandro@fillmore.com

Charles D’Alessandro

charlesdalessandro@fillmore.com
tel 718 253-9600
fax 718 253-9573

Brooklyn Real Estate Blog Is a Reverse Mortgage on Your Brooklyn Condo a Good Idea?

I know the words “short sale” may scare you.  But please take just a minute to learn why short sales have become a viable option for your Brooklyn real estate if you’re considering foreclosure.

Once deemed difficult to get, hard to close and rough on the credit score, corrective measures have been taken to improve the valued short sale.  And, the winners are those who understand how short sales work in Brooklyn real estate.

If you are faced with a house underwater or considering foreclosure or a short sale option, please understand the game has changed.

Short Sales Before versus Now

In early 2009, the typical short sale had less than a 50% chance of success.  Banks were skeptical, unprepared and unwilling to accept losses.  No longer!

Thanks to aggressive changes made by the Federal Government, the short sale has become the preferred option for distressed buyers, sellers and lenders.

• The administration has thrown incentives to first mortgage holders, second mortgage holders and new lenders.
• Primary lien holders in who agree to a short sale can receive as much as $3,000 from the government.
• Secondary lien holders, who previously were often asked to step away empty handed, now can receive up to $6,000 for formal releases.

Additionally, there used to be more serious credit devastation for the short sale seller.  In some cases, outright releases were not provided.  The administration has stepped in to protect these distressed sellers.  Today’s short sale has less credit impact on the seller as would the credit impact of a foreclosure.

Now that short sales are a viable option, the market has exploded.  Short sales increased by 4% between November, 2009, and February, 2010.  Activity will only continue to increase.

If you would like to find out whether a short sale could benefit your distressed Brooklyn real estate, give me a call now at (718)253-9600 ext.206 or email me at charles@brooklynrealestatesales.com

Charles D’Alessandro

charlesdalessandro@fillmore.com
tel 718 253-9600
fax 718 253-9573

Brooklyn Real Estate Blog How to Identify Your Perfect Brooklyn Real Estate Agent

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There are a few things you can do to make the process of buying a new Brooklyn home easier and faster.  Getting pre-approved for financing is one of them.  Here are four advantages of loan pre-approval:

REALTORS® Take You Seriously

When you walk into an agent’s office with pre-approved financing, the agent knows he is not wasting his time showing you homes. If you do not have pre-approved financing be prepared for agents to ask a lot of questions and even possibly request that you get financing in hand. They are not trying to be invasive. They are avoiding “tire kickers” while helping you streamline the process.

Home Sellers Feel More Comfortable Dealing with You

When you have pre-approved financing, sellers are more apt to work with you on price, or other needs, in order to close the deal. They know that there are not going to be contingencies on a loan, or waiting and wondering if you qualify for the loan. They know they don’t have to worry about turning other prospects away and then finding out you haven’t been able to get a loan.

Fast Closings

Getting pre-approved for a loan means no waiting on the biggest of all hurdles before closing.  Other items needed to close on a Brooklyn home purchase usually move quickly, but loan applications can drag out and require setting a closing date far into the future to allow for the time needed.

Less Stress

Above all else, having your financing in hand before you even begin to look for the perfect Brooklyn home makes the entire process less stressful for you. Knowing you have the money to back you up when you find the home of your dreams is much better than finding paradise and having to worry about getting financed and possibly losing it.

If you would like to find out more about pre-approved home loans, I can help. Contact me at 718 253-9600 ext.206 or email me at charles@brooklynrealestatesales.com.

Charles D’Alessandro

charlesdalessandro@fillmore.com
tel 718 253-9600
fax 718 253-9573

Brooklyn Real Estate Blog Brooklyn Real Estate Agents Sell Ugly Houses, Too!

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A short sale happens when a lender agrees to accept less than the balance remaining on a home. It is a way for sellers to avoid foreclosure and sell their Brooklyn homes.

It seems like a good idea for people who owe more on their home than it’s worth, but that doesn’t mean it is right for everyone. Should you consider a short sale on your Brooklyn home?

Pros to doing a short sale:

• You will be able to sell your property, get out from under a mortgage you cannot afford and lower your debt.
• You can still sell your property in a declining real estate market, even if you owe more than the home is worth.
• Buyers sometimes get good deals on the property or may be able to buy a home at market value in a popular area they couldn’t previously afford.
• While a short sale isn’t ideal, it is typically better than a foreclosure which stays on your credit report for 10 years.
• If your home goes into foreclosure and is sold at auction for less than the mortgage, you can still be held responsible for making up the difference.

Cons to doing a short sale:

• The lender may refuse to do the short sale, or they may still hold you responsible for the remaining debt.
• The bank’s loss is considered taxable income for you, and you may have to pay taxes on the amount.
• Short sales do stay on your credit report and may make it difficult for you to a get loan in the future.
• You may have to find a real estate agent willing to work for a smaller commission.
• Short sales take longer to close than traditional home sales.

I can help you decide if a short sale on your Brooklyn home is right for you. Call me today at (718) 253-9600 ext.206 or email me at charles@brooklynrealestatesales.com for more information about your selling options.

Charles D’Alessandro

charlesdalessandro@fillmore.com
tel 718 253-9600
fax 718 253-9573

Brooklyn Real Estate Blog Should You Consider a Short Sale on Your Brooklyn Home?