What Are 10 Year Notes & How Can You Buy Them?

A 10 Year Notes can be defined as a form of U.S. Treasury security which is being sold with the objective of financing federal debt. The treasury notes in United States mature in over one year, but they don’t go up to 10 years. Therefore, treasury notes differ from the treasury bills. In fact, treasury bills can be categorized as short term securities, which are associated with less than a year. You will be able to purchase treasury notes from the public securities market. Or else, it is possible to get them through federally operated auctions.

Several factors affect the prices where 10 Year Notes are being sold. The goals of the investor, resources of the investor, interest and yield rate coupon amount and maturity date are to name a few. The United States securities include both Treasury bills as well as Treasury notes. Both of them pay the interest to holders in every six months. In addition, face value of the security would be paid upon maturity. Treasury bonds mature after a time period of over 10 years. Moreover, they are being sold in bigger increments. For the financial institutions, the treasury bills will be short term debt instruments, which mature within one year from the date of issue. The investors purchase these treasury bills for a lower amount when compared to the face value. The paid interest would equal the difference that can be found in between the par value at maturity and purchase price.

The 10 Year Notes are being issues along with future maturity dates. It can be 2, 3, 5, 7 or even 10 years. Moreover, the 10 Year Notes are being issued as increments of $100. The interest rates and purchase prices of them are being determined at the audition. As a result, the price can be less than, more than or equal to the paramount or face value of the note. Since 10 Year Notes are a fixed rate security, the price depends on the interest rate and the yield to maturity ratio. For example, if the interest rate is less than the yield to maturity rate, the price would be more than par value.

The 10 Year Notes can be purchased from a bank or any other financial institution, a government security dealer or through private security brokers. Or else, it is possible to reach Treasury Direct and purchase 10 Year Notes. All the securities will be issued as per the book entry method. In this method, the entries would be recorded in a centralized ledger. All the entries can be conducted via commercial bank form along with your broker or the bank. In fact, this is a multi-tier system, which is associated with the Treasury Department. If you are looking forward to invest your money on 10 Year Notes, it is recommended to have a clear understanding about them in order to stay away from frustration in the future.

Buying a Short Sale? Avoid These Errors

Since the deep recession periods of 2007, short sales have been a way for buyers to escape foreclosures and relieve themselves of weighty mortgage balances.

Even though, buying a short sale is an opportunity, it might also be a burden when you have to spend too much on repairs. Short sale, foreclosure or HUD home buyers must understand that many of these properties might be in poor condition since the owner who owed mortgage debt may not be able to afford the house’s upkeep, hence there may be major repairs needed.

For example if you bought a home for $20,000 less than its fair market value and you had to make repairs worth $30,000. You lost $10,000 on your purchase.

So here are the common errors to avoid when buying a short sale home;

1. The Obvious Issues
Don’t ignore the obvious issues like the termite damaged floor and the pipe leak. The price may be attractive and even though the neighborhood has good schools and fine houses, ignoring the obvious signs may cost you a lot.

2. Skipping the Home Inspection
Buyers should be involved in the home inspection. A considerable part of an inspector’s job is education. Buyers should therefore inquire about, problems, potential problems and how much it would cost to fix them. Never underestimate how much renovation costs.

3. Ignoring Legal & Insurance Information
Have all renewals been approved? Is the house on a floodplain? In a short sale, the current owners of the house may not be 100% percent open about the condition of the house.

4. Making Assumptions
A short sale typically can take longer than a traditional home sale transaction, and in some cases a good deal longer. Occasionally it will take a bank time to come to a decision; in many cases, bank employees have a lot more things to do and a short sale application might sit in their to-do box for a long while. Never assume that this will be a quick transaction.

5. Falling in Love
A lot of agents agree that the issue with a lot of home buyers is letting their emotions control their logic. When buying, you need to think like an investor. How much could you earn monthly if you rented the property? How much will it cost to rehabilitate the house? Many buyers love a home when they buy it, but their emotions change later after having put $ 40,000 in repairs. Carefully examine a house and make decisions logically.

Why Many Boomerang Buyers Are Coming Back Into the Housing Market

Cities that were hardest hit by foreclosure are going to see an upsurge in demand by boomerang buyers, cities like Phoenix, DC, Detroit, Miami and Las Vegas.

This is based on assessment of foreclosure rates, affordability and demographic data by RealtyTrac. A boomerang buyer is one of the seven million homeowners who lost their home to foreclosure during the recession.

Basically, it takes seven years for foreclosure to disappear from a credit score. Many of those who got hit by recession in 2008 and 2009 are getting their slate wiped clean and reentering the market. Millions of consumers’ credit report will no longer reflect past mortgage problems.

Between June 2016 and June 2017, 2.5 million foreclosures, short sales and bankruptcies will fall off credit reports, according to facts by Experian. Many of these boomerang buyers have had enough time to work on boosting their credit. So Experian’s research further adds that 68% of boomerang buyers have high or near prime credit scores, which will improve their odds of getting good rates on the mortgage.

However, comparing short sales between 2007 to 2010, it can be concluded that short sales make it easier to bounce back into the market. Experian’s research reveal that 29% of short sale sellers during the recession have reentered the market and secured a new mortgage compared with just 12% of foreclosed home owners.

“With millions of borrowers potentially returning to the housing market, the trends we are seeing are promising for the mortgage applicant and the lender,” said Michele Raneri, vice president of analysis and new business development at Experian, in a news release.

In the coming years, boomerang borrowers will be a critical segment of the real estate market.

While many of these borrowers have gone through a tough time, it is inspiriting to see them taking control of their finances with better credit scores and better credit management.

Credit scores for these boomerang borrowers have improved, Experian observed. Individuals who applied for a mortgage loan subsequent a foreclosure have an average VantageScore credit rating of 680, representing a 20.8% rise from when they went through the foreclosure. And the median credit score for short sellers has risen to 706, an increase of 16.5% from the time of the short sale.

Top 5 Reasons You May Need To List Your Home

Real estate stats have always shown home sales rising during summer and spring but dwindling during winter and autumn months. If you’re still on the fence about listing your home before the winter months, you may need to act fast because of the following reasons:
  1. Equity advantage

Due to recent market upswings in the Virginia real estate market, your home already has more value. It’s time to take advantage of the gains in equity and list your home now.

  1. Your house is too small

You’ve grossly outgrown your present home — either you had two more kids or an older parent has shifted in. If you are in a home that’s too small for your immediate (and future) needs, this is the time to consider the jump to something somewhat larger. Sale prices are solid, and you could take advantage of current interest levels before they start climbing.

  1. Incredible shrinking family

Empty nesters need to consider downsizing. It’s not fun to have to manage a big house with all its daily responsibilities, cleaning and maintenance. Downsizing now will mean less stress and a better lifestyle.

  1. Interest rates could start a fire

Interest rates are going nowhere but up, so if you are wondering when could be the best time to get a good mortgage rate on a new home?, the answer is now. Rates are currently at historic lows and are not likely to go anywhere but north in the foreseeable future. Sell now, buy and get these low rates for the long term.

  1. Sell if you want to, don’t run after the market

Not ready? Don’t rush it. If you are dealing with job change, divorce, children, medical issues, marriage, etc., and you should sell your present home right now (or don’t have enough time or energy to really get your home in market-ready condition), don’t make an effort to chase the market, run at your own pace.

However, the market still determines your real estate experience. If prices are high, you buy high and you sell high. So, you still need to consider the market whenever you do decide to sell. The bottom line is, list your house when you need to, price it right and move on.


How To Sell a House in Foreclosure

For many people who find themselves in the ‘foreclosure’ situation, asking the right questions is crucial and one very important question to ask is, Can I sell my house in foreclosure? And if so, sellers in distress need to understand how to sell a house in foreclosure. As long as the bank hasn’t put up a for-sale or auction sign on your home, your house is still yours to do with as you please, no matter the equity loss. So it is possible to sell a house in foreclosure.

Hence, it is not a wise option to let your house go into foreclosure, which would take many months or even years to complete. So, how do you sell a house in foreclosure? Try a short sale. Lenders prefer a short sale to a foreclosure and would be eager to respond if you have an experienced agent by your side. Here are the steps to take:

  1. Meet with your lender to discuss the possibility of a short sale. Know that if you don’t default on your loan, your short sale request won’t be approved. Meet with a decision maker in your bank and let him/her know the reason why you need to do a short sale.
  2. Recruit an agent and a legal professional to assist with the sale. Although money is limited, using specialized help will profit you over time. Unless you have the funds to pay them in advance, discuss the opportunity of paying them from the sale proceeds.
  3. Set a price. You want a price as near the money you owe on the mortgage as possible, in addition to the agent’s percentage and other sales costs, but that may well not be possible in a fragile market. Speak to your agent about what you can expect realistically, then put the house on the market.
  4. Present a price to the lender. Present the top bid on the house to the lender for approval. This will be a better option than foreclosure because in a foreclosure auction, the top bid may be way below the value of the house but the lender accepts it anyway since he has to make a sale. Present a good price to the lender and then.
  5. Talk with your lender about a deficiency judgment. Be sure to clarify whether or not your lender will come after you for the deficiency on the short sale. Your real estate agent will help you negotiate this.

5 Expert Tips for Selling Your Home

A short sale is a negotiation between you and your lender to sell your home for less than what is owed. Since you may not be an expert at negotiating with a lender. Here are a few expert tips for short selling your home:
  1. Know your mortgage balance(s)

The first thing you need to do is find out how much you owe and how much your lender is willing to forfeit. Since the lender is taking a loss, it will set the selling price of the home. If you took two mortgages from different lenders, each lender has to approve the mortgage and set the price it’s willing to accept.

  1. Put together a short sale team

When you sell your home in a short sale, you need to assemble a team of professionals to help you walk through the process. First, hire a real estate agent who specializes in short sales, then a real estate attorney and tax advisor.

  1. Prepare your documents

A short sale needs your lender’s approval. Your lender needs to see why this is the way to go. Our short sale team are skilled in short sale negotiation. Having the right team along with the right documents will set up a smooth short sale process. Generally, the bank asks for the following documents:

– Seller’s hardship letter

– Authorization letter

– Last two bank statements

– Last two tax returns

– Last two pay stubs

– Purchase contract among others.

  1. Be Patient

Standing on your agent’s neck, seeking a fast reply doesn’t help the process. Short sales take months to complete. The bank takes their time before giving a reply. Which is conceivable, since they are accepting to lose some money, it takes time to find a buyer and close the deal. So, just be patient and work with your real estate agent

  1. Expect Demands and Requests

Get ready for the worst, but expect the best. There’s a whole lot of backwards and forwards between you, your team of experts and the lending company. While dealing with a team of experts really helps to make sure your short sale package is well-organized, the lender will make additional needs and demands. Reply to and submit the information at the earliest opportunity so as not to delay the process.

So, if you’re trying to ditch a home you can’t afford or fighting a foreclosure, a short sale offers a way out. However, it won’t be a smooth ride, hence you have to prepare for everything and have a good team working for you.