Q & A with Barbara Corcoran

---

Q1 - We have a 2500 square foot home on a premium corner lot in a 55-plus community outside Chicago. It's fully upgraded and we've been trying to sell it for over a year. Now we plan to re-list it. Any suggestions on how we can move this property?

A - You need to put your home where buyers can find it, and the Big Kahuna today is the internet. When you list your house with a real estate agent, it's automatically posted on your local multiple listing service for all the brokers in the area and also on realtor.com. Realtor.com is huge, but there are other giant websites that also generate buyer leads and your broker doesn't necessarily list your home there. So don't overlook trulia, zillow, craigslist and also the website of your area's largest newspaper, like chicagotribune.com. The more places you post your house, the faster it sells.

---

Q2 - We're getting ready to move and are trying to figure out whether this is a good time or a horrible time to buy a house. Is there a good chance the market will pick up in the next few years? Are we crazy for thinking of buying at this time?

A - If you want a house, you're crazy not to think about buying now. Great homes for sale are stacked like cars in a parking lot and many homeowners are desperate! On top of that, interest rates are at an all-time low, 5% or less, and the FHA is offering aggressive financing with only 3.5% down to just about anyone willing to belly up to the bar. The FHA will even lend to buyers with poor past credit. In short, these are the good ol' days we've all been dreaming about and they won't be here forever.

---

Q3 - My husband and I have an adjustable rate mortgage and were supposed to refinance our home in August but couldn't get the loan. Our home is not worth what it was when we bought it two years ago and we're already struggling with the current mortgage. Now that the mortgage will be going up $125 a month we are nervous. We thought of going to the bank's workout department but someone told me that could hurt our credit. We don't know what to do.

A - Modifying your loan doesn't hurt your credit. What will hurt your credit is suffering quietly while slowly falling behind in your payments. So pick up the phone, call your lender, and be sure to speak with an officer in the workout department. You're in the same position as millions of other responsible homeowners who struggle with their mortgage payments. Many of the biggest banks have recently hired additional workout people and streamlined the process of modifying loans just to help people like you.

---

Q4 - We built a new home 2 1/2 years ago. We did 100% financing with a 1st and 2nd mortgage. We would like to sell our house and downsize to a smaller house with a smaller payment and possibly allow me to stay at home with our son. The builder is still building our home for the same price in our area. Do you think we could sell it or are we just kidding ourselves? Should we just try to break even on the home? If we do sell it, would we even be able to buy a house at 100% financing in this economy?

A - 100% financing is a thing of the past. But if you can put 3.5% down, you can get a loan from the FHA for the rest. Your real problem is going to be competing with the builder who's still offering brand new houses for the same price you paid for yours two years ago. So first ask a good real estate agent what you could sell your house for now, and chances are you'll decide to stay put.

---

Q5 - I've put a down payment on a new condo in DC, but have not yet locked in my mortgage rate with the lender. What does the mortgage rate trend look like with the pending bailout plan? Will rates go up or down, and should I lock in the rate sooner rather than later?

A - Nobody knows which way rates will go and it's not worth stressing over. Just go ahead and lock in your rate now so you can put it to bed and sleep well at night. Rates could go up a half point or down a half point, but what you know for sure is they're low right now and you're smart to grab the cheap money that's available.

---

Q6 - We own timeshares in Kissimmee, Florida and St. Thomas, V.I. and would like to sell them. What method would you suggest that we use to sell our timeshares? What is the market like for timeshare re-sales?

A - Timeshares are always hard to resell, and in today's buyers' market you'll have to be very aggressive. The best way is to list them online where there are thousands of other properties. The two biggest sites are sellmytimesharenow.com and buyandselltimeshares.com. But because people are more in the mood for renting and trading than they are for buying right now, properties are moving very slowly and you'll have better luck if you're open to trading your timeshare for another or even renting it out. You can rent your timeshare at timesharerentals.com or swap it for another at swapthing.com

---

Q7 - Some jerk just gave me a $200,000 offer on my beautiful $350,000 home. I've put in new floors and new roof, and fixed up my bathroom last year. I did all the new landscaping myself and the driveway was recently repaved. Where does this guy come off with such an insulting bid?

A - Don't be so hard on the jerk and don't let your attitude leak through. All buyers today feel obligated to put in low-ball offers just to see if the seller bites. If you can get control of yourself and respond with a reasonable counter-offer, most buyers will come up in price and you just may end up making a great deal.

---