Erie Real Estate

Pa. Homes In Foreclosure Hit 4-year High In July

New figures out Thursday from foreclosure listing firm RealtyTrac Inc. show more than 5,300 Pennsylvania homes received at least one foreclosure filing last month.

That was up 7.6 percent from June to last month, or 375. It was the highest monthly total since RealtyTrac began collecting the data in April 2005.

July's increase was the second straight monthly increase after a big drop in May, and was slightly higher than the national increase of 6.7 percent over the same period.

Pennsylvania's foreclosure rate was about one-third the national rate, with one in every 1,030 homes receiving a foreclosure filing last month.

The next Sheriff Sale in Erie County is August 21st.

Home Improvement Law

In 2008, the Pennsylvania Legislature passed the Home Improvement Consumer Protection Act.  The law requires that all contractors who perform at least $5,000 worth of home improvements per year register with the Attorney General's Office. 

As of July 1, 2009, consumers in Pennsylvania will be able to verify your registration with our office by visiting the List of Registered Contractors or by calling 1-888-520-6680.  In the coming months, the Attorney General's Office will encourage consumers to use registered contractors when deciding to invest in home improvements. Contractors (click here to register) with questions about the law can call, 717-772-2425.

The Attorney General's Office has prepared a list of commonly asked questions.

Read the Home Improvement Law.

You heard it here first...

Listings are down from prior years.  That's what the newspaper says today.  It's about time they came to that conclusion.  Remember that you heard it here first!  That's right, I 've been saying that less homes are coming on the market vs the same time frame in 2008 and 2007.

Less properties available correlates to less properties sold.  July being the only exception this year.

Sue Sutto got it right - the time to process loans is taking a lot longer than it used too.  Changes in the lending environment contine to change on what seems like a daily basis.

My suggest to potential sellers - put your house on the market now and take advantage of the low inventory.

My suggestion to buyers is two-fold - make sure you pre-approvals are updated.   Second, remember the $8,000 tax credit is over 12/1/2009.

Top 7 Reasons Why Buying is Better than Renting

Many renters are realizing that the increase in affordability- combined with low interest rates and tax incentives- are tipping the scales away from renting and towards homeownership.   some renters are finding that they can get a bigger bang for their buck if they buy.

Following are the top 7 reasons why it’s better to buy than rent in 2009

1. Buying doesn’t always cost much more than renting. According to a recent study by the Associated Press, the gap between monthly mortgage payments on a median-priced home and the median rent has decreased from $777 to just $221 in the last three years.

2. Affordability is at an all-time high. In some markets across the Country, prices have declined by nearly 40%.  Not quite that drastic locally, however.

3. Buyers can take advantage of tax benefits of home ownership. Perhaps the biggest tax break is reflected in the house payment homeowners make each month. For most, the bulk of that payment goes towards interest. All interest is deductible, unless the amount is more than $1 million. Property taxes are also deductible.

4. Buyers can purchase homes with little or no down payment. Qualified first-time buyers may be eligible for loans insured by the Veterans Administration (VA), which does not require a down payment. Another loan product gaining popularity are those insured by the Federal Housing Administration (FHA), which require only a down payment of 3.5%.

5. The Tax Credit. First time homebuyers-defined as anyone who hasn’t owned a home in the last three years- are entitled to an $8,000 tax credit. (Ownership of a vacation property or a rental property doesn’t disqualify homebuyers from this program.) No repayment is required for homes sold after 36 months of occupancy and ownership.

6. Mortgage rates are at all-time lows. Take advantage of low 30 year fixed rates. We haven’t seen rates this low in the last 3 decades.

7. It’s yours. It feels good to own your own home. After all, you can paint it any color you want, make improvements, and plant a little garden.