How soon after foreclosure can I buy another home?

This is a question that we, as Realtors, are asked pretty regularly.  Foreclosures, Short Sales and Bankruptcies all have differing effects on your credit history.  To complicate matters even further, it will depend on what type of loan you are trying to qualify for as to what the rules will be.

Different lending programs have different rules regarding how long you have to wait to purchase your next home.  I’ll go over the five main loan types in this post:  Conventional (which includes Fannie Mae and Freddie Mac), FHA, VA and USDA Rural.

To see a chart of how all these loan programs compare, click here.

To watch a video with all this information, click here.

FANNIE MAE:

• If you had a foreclosure, you must wait seven years.
• If you had a short sale, it depends on how much money you have to put down.
  • With 20% down, you can buy again after only two years.
  • With 10% down you can buy again after four years.
  • For less than 10% down, you must wait seven years.
• If you had a chapter 7 bankruptcy, you can buy again four years after the discharge or dismissal date.
• For a chapter 13 bankruptcy, you can buy 2 years after the discharge date and 4 years after the dismissal date.

FREDDIE MAC:

• After a foreclosure, you must wait seven years from the completion date.  However, if you have up to 10% to put down, that time may be as little as four years.  Check with your lender.
• If you had a short sale, you must wait four years after the completion date for that short sale or deed in lieu.
• For a chapter 7 bankruptcy, you must also wait four years.
• However, for a chapter 13 bankruptcy, you can buy again two years after the discharge date.

FHA:

• A foreclosure will cause you to wait for three years before you can buy again.
• That time frame is the same for short sales…just three years.
• After a chapter 7 bankruptcy, fha will allow you to buy again after two years.
• And with a chapter 13 bankruptcy, you can buy another home in as little as one year…however, you must receive permission from the court to enter into the mortgage.

VA:

• The veterans administration will allow veterans to buy again just two years after a foreclosure.
• The time frame is the same for short sales as well as chapter 7 bankruptcies…buy again after just two years.
• If you’re applying for a VA loan but had a chapter 13 bankruptcy in your past, you can buy again as early as one year later…but you will need to get the court’s permission.

USDA:

• If you are considering buying a rural property and financing through the usda, a foreclosure, short sale or chapter 7 bankruptcy will delay that purchase for three years.
• The usda will allow chapter 13 bankruptcies to buy again after only one year, but that also requires the court’s permission.

Hopefully this will help you to determine your timelines for buying your next home.  For specific questions, always consult a licensed lender.  For a list of lenders with whom I have had excellent success, visit our Lenders page.

Home Staging

As a professional Realtor, it is my job to get your home sold.  As your representative, it is also my job to sell it as quickly as possible and for as much money as the market will pay.  These are pretty simple concepts.  Most sellers would agree that getting it sold for the most money possible and as quickly as possible would be the optimal outcome to listing your home.  There’s plenty of unique things I can do to sell your home, but price and appearance are the two most important factors that buyers consider.  As the seller, both of those are your responsibility.

Unfortunately, many sellers feel that their home will just ‘sell itself’.  Or that, as Realtors, we have some magic mojo to get a home sold regardless of the condition or the price.  Believe me, if we had that magic mojo to use we would use it to sell your house!  The reality is that yes, some homes will just ‘sell themselves’…but that is a rarity.  Most home owners get used to the way their home looks, smells and feels for their purposes without realizing that what works for them almost never will work for buyers who are looking to purchase the home from them.

Sample of home staged by Karen Conrad Home Staging. Used by permission.

The purpose of home staging is to remove the sellers’ personality from their home so that buyers can imagine themselves living there.  In the case of a vacant home, home staging can add just enough personality to empty spaces to get the creative juices flowing for buyers who see it.  The end goal, whether staging an occupied or unoccupied home, is to allow buyers to project themselves into the space.  To see a before and after photos of a house staged by fellow Keller Williams Realtor and home stager Karen Conrad, check out the video on my website by clicking here or the image on the right.

There are definitely things that you can do yourself to help your home to sell quicker.  These are things such as turning on all the lights, opening the curtains, fixing damaged walls etc.  Check out the list on our website for some suggestions.  The items on this list are a good starting point for anyone selling a home, but home staging takes things to the next level.  A professional home stager is essentially an interior designer who specializes in presenting a home to potential buyers.  The stager will look at your home with an eye towards accentuating the good points of the house and diverting attention away from any less than positive aspects.  It requires a neutral perspective from an outsider to do this in your house.  As homeowners we are blind to these things because we live in the house every day.

Home Staging research has shown that homes that are professionally staged sell quicker and for more money than comparative homes that are not staged.  The Return on Investment that homeowners receive for the money they invest in having their homes staged averages a staggering 586%.  That sounds to me like the perfect win/win for homeowners who want to sell quicker and for more money!

I-25 Construction Update

Here’s another quick update on the Interstate 25 expansion project underway in North Colorado Springs.  Work is continuing, albeit at a slower pace than it was previously.  You will notice less crews working on the road these days but that does not mean that the project is complete.

Milled Pavement

You probably have noticed the cautionary messages displayed on the CDOT electronic message signs in the work zone warning motorcyclists to drive carefully through the work zone.  This is particularly important to motorcyclists because of the irregular surface of the road in that stretch.  Sections of the road have been milled to level out high spots (see photo on the right).  The sections that have been milled tend to have a thinner layer of pavement on them, which makes them especially prone to coming apart and creating potholes in the road surface.  This is noticeable enough in a car…but can be downright dangerous on a motorcycle.  Please give motorcyclists extra room in the construction zone as they may be forced to maneuver suddenly to avoid these problem areas.

There is one weather-related change to the construction schedule:

LaForet Trail Tunnel

Work on the tunnel beneath I-25 to accommodate the LaForet Trail, originally scheduled to start on February 1st, is being delayed until spring.  The cold weather that we have been experiencing, coupled with the snow, has made it difficult for crews to work on the tunnel until the snow and ice inside the tunnel has melted.  As such, this part of the project will be delayed until consistent warm weather arrives in the springtime and the snow and ice in the tunnel can melt.  Once work resumes, that section of the trail is expected to be closed for approximately a month.

Periodic Daytime Lane Closures

There will be periodic lane closures in the construction zone between North Academy Blvd and Hwy. 105 in Monument.  These closures will allow crews to work on filling potholes in the temporary road surface during these winter months before the final phase of construction starts in the spring to fully mill the asphalt and put down the final layer of pavement for the full length of the expansion.

Crews are also working to install new lighting and signage along the length of the expansion.  Lane closures will be required in these sections to provide a safe area for the workers.  These lane closures should only happen between the hours of 9am and 4pm.

I-25 Construction Update

Here’s the latest information from the Colorado Department of Transportation regarding the I-25 Expansion Project in North Colorado Springs.

Guardrail / Lighting Installation:

For the next few months, crews working on the I-25 expansion project will focus on installing guardrail, lights and signs along the 11-mile project. New guardrail has been installed in the southern segment of the project and that work will continue toward Monument in the coming months. Median lighting is also being installed and will be activated once all the wiring is complete. Lights on North Gate Boulevard where the new roundabouts were built should be in place and operational in spring.

Road Surface Conditions:

Crews will work throughout the winter months, weather permitting, to patch potholes to provide a smoother ride. Substantial work to complete the interstate expansion southbound between Monument and North Gate Boulevard will resume when warmer temperatures return in April. In the meantime, drivers will encounter periodic daytime left lane closures in areas where the interstate has been widened to three lanes.  Those single-lane closures will take place between 9 a.m. and 4 p.m. for light, guardrail and sign installation.

Left Lane Ends at Weigh Station:

Now that the third lane has been opened northbound to Monument, drivers are reminded that the left lane ends near the weigh station and they should merge right when possible to avoid last minute movements that could complicate traffic flow.

As a North Colorado Springs homeowner myself, I can say (as many of you can) that this expansion has made a huge difference in the traffic moving between Colorado Springs and Monument.  Can’t wait for it to be completely finished sometime this summer when the final layer of asphalt is laid down!

District 20 Homes for sale

If you’re looking to move into District 20, this is the best place to start.  This blog post is updated weekly with the latest (and greatest!) listings that have come on the market in D-20 in the past week.  Check back here every Friday so that you can plan which homes to see over the weekend.  And then contact me to set up a time to see those homes.

To see all listings from the past seven days in D-20, click the image on the right. 

To see all listings in Academy District 20 regardless of when they went on the market, click here.

901 Spectrum Loop

Former Model In The Heart Of Northgate! Open Floorplan*Hardwood Floors*Granite Counters And Island*Spacious Rooms Welcome You Home! Large Great Room Concept Throughout Main Level. Beautiful Formal Dining Off Entry With Wood Floors. Expansive Master Retreat With Adjoining 5 Piece Bath And Grand Walk-In Closet! Large Open Loft/Entertainment Room On Upper Level! It Is Rare To Find Secondary Bedrooms This Large! Walkout Finished Basement Includes Game/Rec Room With Two Additional Bedrooms And A Full Bath.

8045 Potomac Drive

Beautiful 4-Level Home In Desirable Briargate/District 20!Open Floorplan. Real Hardwood Floors Cover The Entire First Floor.Large Kitchen Has Refinished Cabinets & Hardware.5 Bed/4 Baths Including A Newly Tiled 5-Piece Master Bath,Upper Level Full Bath, Half Bath On Main Level; & 3/4 Bath On Lowest Level. 5Th Bedroom Is Great For A Guest Area.Front/Rear Sprinkler System. Newer Carpet,Interior Paint & Doors & Brushed Nickel Fixtures Throughout. Newer Roof & Liftmaster Garage Door Opener & Door Springs. Nicely Landscaped.

If you’d like any additional information about these or any other North Colorado Springs home, please don’t hesitate to contact me.  I’m happy to help.

District 20 Choice Window

If you are considering choicing your student into a District 20 school for the 2014-15 school year, the time is rapidly approaching for you to learn about the options available for your child.  As a parent of three D-20 students, I can tell you that this school district offers tremendous opportunities for learning for students that are unique in Colorado Springs.

As you may or may not be aware, Colorado is a ‘Choice’ state.  This means that you are allowed to ‘choice’ your child into any school in the state, regardless of where you live.  Many states require students to attend their neighborhood schools only…offering no ‘choice’ as to where your child goes to school.  In states like that, parents are forced to live in the school district where they want their kids to attend school.  Oftentimes, homes in those desirable school districts are prohibitively expensive for parents to live, and children’s education will suffer simply because their families can’t afford to live in the better districts.  This is the foundation of the ‘Choice’ philosophy.  In Colorado, a parent living in one part of town can ‘choice’ their kids into a completely different school district without penalty.

If you are considering doing this, it is highly recommended that you contact the school you want to send your child to and get information specific to that facility.  For a list of all D-20 schools as well as links to their websites, click here.  Each D-20 school typically hosts a ‘Choice Night’, where the public is invited to attend, tour the school, and ask questions of the teachers and administrators.  Once you have decided on a school, you will need to apply to choice into District 20 (or, if a resident of D-20, apply to choice to a different school).  The window for doing this opens on Friday January 3rd, and goes until Friday February 21st.

For more information on choicing into District 20, download the D-20 Choice Booklet here.

Wildfire Mitigation Tips

Many us living in North Colorado Springs have had a couple of very personal experiences with wildfires recently.  Between Waldo Canyon fire in 2012 and this summer’s Black Forest Fire, over 800 homes were destroyed in about a one year period.  That’s a staggering amount of loss.  Many families are nowhere near to recovering from those catastrophes…and many have lost possessions that can never be replaced.

With these hard lessons fresh in our minds, it is important that we take steps to help prevent something like this from ever happening again.  The words “Wildfire Mitigation” and “Defensible Space” have become a regular part of the vocabulary of people who live in the Wildland / Urban interface.  Here’s a few tips, courtesy of the Colorado Springs Fire Department’s Wildfire Mitigation department, to get you thinking about what you need to be doing if you live in a high risk area of Colorado Springs.  For a more thorough article on Wildfire Mitigation techniques, visit our website.

• Some roofing material is far better than others.  As we saw mostly in the Waldo Canyon Fire, cedar shake shingles are extremely flammable.
• Vegetation next to your house.  Some vegetation is more flammable than others, but juniper and cedar are extremely hazardous to keep near any structure.  Deciduous trees and bushes are less flammable than coniferous.
• Wood Decks are a danger.  If a deck catches on fire, it will more than likely catch your house on fire as well.  New types of materials such as composite decking are less flammable.
• Wood Siding.  Although no longer allowed by modern building codes, many homes in Colorado Springs still have natural wood siding, which is very susceptible to ignition.  A newer alternative is called ‘Hardy Board’ and has the same look as painted natural wood exterior paneling.  Note that, although safer, even stucco homes can burn.
• Vertical arrangement of fuels.  Can a fire jump from grass, to bushes, up to the low hanging limbs of trees?
• Horizontal arrangement of fuels.  Can a fire jump from bush to bush, or tree to tree, in a horizontal direction?

Be sure to visit our website for a more thorough and detailed article on wildfire mitigation techniques.

I-25 Construction Update

Good news for drivers commuting between North Colorado Springs and Monument.  The interchange at Northgate Blvd has reopened as of this past Thursday.

The configuration has changed significantly from how it was built before.  Previously, the interchange was a traditional ‘loop’ configuration from and to the Interstate.  The change has eliminated three ‘loop’ style on and off ramps to and from east and westbound Northgate Blvd and Interstate 25.  It now has two ’roundabout’ style intersections, which allow for a much safer and controlled flow of traffic to and from the interstate and the communities of Northgate and Gleneagle.

Eventually, plans for the northern extension of Powers Blvd will see additional modifications to the Northgate interchange to accommodate the connection to Powers Blvd.  The developers map, on the right, shows the plans for that traffic flow once the road is built and the Copper Ridge Retail Development is complete.

If you’ve seen an increased State Patrol presence on the stretch of road between Monument and Colorado Springs, that’s not a coincidence.  The speed limit reduction remains in place all the way from County Line Road (on top  of Monument Hill) all the way south to the Woodmen Road interchange.  A speed limit of 65 mph is being strictly enforced by the State Patrol.  Keep in mind, also, that speed limits can vary within the construction zone and when lanes are closed at different times to accommodate the construction.

There has not been any update recently on the lane realignment at the Academy Boulevard interchange.  Work continues on the concrete center barrier between the newly reconstructed northbound and southbound lanes from Academy Blvd and Woodmen Road.

 

How Video Helps Sell Houses

The North Colorado Springs Real Estate market has been heating up for a while now.  There’s plenty of professional agents in this part of town who are all very experienced in getting your house sold.  I know many of them…and they’re all very good at what they do.  When you’re considering selling your home, one of the things I always tell people to ask prospective agents is “what can you do for me that other agents can’t?”

My extensive background in technology gives me a great answer to this question when I’m making presentations to homeowners.  Each of my listings gets a high-definition, broadcast quality video created about the home and surrounding area.  Some agents may think that this is a lot of effort to go to when listing a house, but when one considers the current generation of home buyers this really gives my listings an edge.

According to the National Association of Realtors, over 90% of prospective buyers start their search on the internet.  The amount of information available to shoppers is truly stunning these days.  Gone are the days when an agent is completely responsible for finding homes of interest for clients.  While that is still something that we do, more often than not our clients tell us “yeah, we already saw that one online.  We’re not interested.”

Home buyers start their search on the internet because it gives them significantly more control over the beginning phases of their search.  They are able to whittle down the features that they want (or don’t want) before they even consider talking to an Agent.  To me, this is great.  It’s always much easier dealing with an educated client than an uneducated one.

The other reason why buyers start their search on the internet is because it is anonymous.  You won’t find a Realtor who is willing to show a $1,000,000 home to somebody who can only afford to buy a $300,000 one.  The internet allows buyers to look inside some homes that they can’t afford, which in turn helps them to filter down some of the features they will be able to afford in their own search.  It helps to educate them as buyers.  Seeing online, for example, that homes with indoor pools are all well over half a million dollars helps them to understand that they’re not going to get that feature in their $300,000 home.

By creating videos for listings, it allows buyers to look at the home anonymously…at a time of day (or night) that is convenient for them.  My videos all have a narrated audio track, which gives me the opportunity to highlight the features of the home that I (and the owners) want to have highlighted.  All without having to talk to the buyers in these initial stages.  It gets me in front of them while preserving their anonymity.  It’s a win-win for everybody.

Think Cedar Shake Shingles are a fire danger? Try this…

I recently returned to North Colorado Springs from a vacation to Ireland and was amazed to discover that thatched roofs are still used there in residential housing.  I certainly expected to see them in all the touristy places we visited, but was shocked to see as we drove through the countryside that this is truly a roof style that is far from going out of style in Ireland. The picture at the right is a spectacular example of the type of workmanship that goes into this type of roof.

Of course, Ireland has a rather damp climate, which in itself negates any serious fire danger associated with these roofs.  At least from the outside, anyway.  That, as well as the fact that there’s surprisingly few trees in the Irish countryside.  I can’t see it being all that safe for North Colorado Springs communities such as Rockrimmon and Black Forest.

As a REALTOR°, I’m constantly on the lookout for items of interest in my profession.  I spent some time looking at these roofs and was able to get some information from the incredibly friendly Irish people on the subject.  There are still craftsmen (I’d probably even go so far as to call them artists) who can create a new thatched roof for your home.

The roofs themselves are made out of a type of reed that grows near the many rivers that run through the country.  They are completely waterproof and are actually quite thick…most of the ones I found measured between 1 and 2 feet thick.  This photo gives you a good view of the hollow reeds used for the thatched roofs in Ireland.

The cost isn’t cheap…they run about 30,000 Euros, but will typically last nearly thirty years.  Maintenance on a thatched roof is minimal, although I have been told that it’s important to spray them once a year to keep critters and insects out.  I saw a couple that have copious amounts of spiderwebs along the eaves…a good indicator that there’s insects living in the roof.

Certainly a spectacular statement to make on your house.  Although, I probably wouldn’t suggest it for use anywhere in North Colorado Springs.  Your insurance company might have something to say about that…