FULLY APPROVED SHORT SALE IN TERRAMAR
Have you heard of a FULLY APPROVED short sale that the home owner was current!!! Well I have! Matter of fact one just closed October 30, 2010 right in the pristine neighborhood of Terramar.
This particular home owner DID have a hard ship and MY TEAM was able to negotiate this short sale with Chase and receive a FULL LEIN RELEASE with a small contribution from the seller. Amazing! there is hope out there for bank to start working with their home owners!
This home was FULLY approved at 370k. the home had many features and the property was in MINT CONDITION… this was not like your ordinary short sale or REO you stumble across!
The home featured the following: 6 bed 4.5 baths and 2100+ Square feet. Property included an RV gate/parking and a 1/2 basketball court that backed to the common area. The backyard was truely an oasis perfect for entertaining. It was equipped with a 50 ft patio, built in BBQ, Huge Diving pebbletec pool with spa and waterfall feature. The Master Suite of the home had his and her built in closets, a master bath with dual side fireplace overlooking large garden tub. Additionally in the fourth bedroom upstairs was FULLY equipped to be a media room and lastly, the family room downstairs was complete with a dry bar built in and fireplace.
Here is a little about where Terramar is located in Peoria, Arizona This area has long been one of the most desirable locations in the Valley. Peoria’s attractive nature and mountainess views along with its limitless amount of recreational opportunities and exceptional school systems One of the most desirable characteristics of this community is the high quality housing..
What a truly breathtaking area to raise a family!!!
Thursday, November 4, 2010
Monday, September 6, 2010
HAFA NEWS YOU CAN USE
HAFA News You Can Use
With the standard HAFA program getting introduced a few months ago and now Freddie Mac and Fannie Mae introducing their own versions at the start of August, it can be confusing to keep up with all the changes and updates.
From “The Government Goes Media on Foreclosure Alternatives,” this excerpt talks about the possibility of HAFA being more successful than the HAMP program:
The HAMP program has not been a raging success. In fact, nearly 521,000 trial modifications have been cancelled and over 60% of those have been trials for six months or more. Only 398,000 borrowers have been converted from trial loan-mods to permanent workouts. Over 45% of cancelled trials are now in a an alternate modification program offered by the servicers. But, of those, at least 6% are still falling back into a 60+ day delinquency status. There are no official HAFA stats to report, but it should be more successful overall then HAMP.
Or check out this video which detailed the still-evolving HAFA policies in May 2010:
How are Freddie HAFA sales different from the standard program?
Freddie’s program is the allowances to subordinate liens. Each junior lien, in order of priority, may receive no more than 6% of their unpaid principal balance up to an aggregate cap of $6000, in exchange for release of the subordinate liens and satisfaction of the underlying debts. That means that if a home has 2 liens in subordinate position, one is a $210,000 HELOC recorded before a $2700 HOA lien, the HELOC will only get $6000 and the HOA nothing.
Freddie Mac will accept the short-sale minimum acceptable net proceeds in satisfaction of the amount owed under the note and release of its lien
Freddie Mac will not require promissory notes or cash contributions from the borrower by Subordinate lienholders must also agree to release all liens without promissory notes or contributions from the borrower in order for the borrower to close under the program.
Fannie Mae HAFA sales include greater incentives for the servicers, taking the max under the Treasury program at $1500 to $2,200.
With the standard HAFA program getting introduced a few months ago and now Freddie Mac and Fannie Mae introducing their own versions at the start of August, it can be confusing to keep up with all the changes and updates.
From “The Government Goes Media on Foreclosure Alternatives,” this excerpt talks about the possibility of HAFA being more successful than the HAMP program:
The HAMP program has not been a raging success. In fact, nearly 521,000 trial modifications have been cancelled and over 60% of those have been trials for six months or more. Only 398,000 borrowers have been converted from trial loan-mods to permanent workouts. Over 45% of cancelled trials are now in a an alternate modification program offered by the servicers. But, of those, at least 6% are still falling back into a 60+ day delinquency status. There are no official HAFA stats to report, but it should be more successful overall then HAMP.
Or check out this video which detailed the still-evolving HAFA policies in May 2010:
How are Freddie HAFA sales different from the standard program?
Freddie’s program is the allowances to subordinate liens. Each junior lien, in order of priority, may receive no more than 6% of their unpaid principal balance up to an aggregate cap of $6000, in exchange for release of the subordinate liens and satisfaction of the underlying debts. That means that if a home has 2 liens in subordinate position, one is a $210,000 HELOC recorded before a $2700 HOA lien, the HELOC will only get $6000 and the HOA nothing.
Freddie Mac will accept the short-sale minimum acceptable net proceeds in satisfaction of the amount owed under the note and release of its lien
Freddie Mac will not require promissory notes or cash contributions from the borrower by Subordinate lienholders must also agree to release all liens without promissory notes or contributions from the borrower in order for the borrower to close under the program.
Fannie Mae HAFA sales include greater incentives for the servicers, taking the max under the Treasury program at $1500 to $2,200.
Thursday, September 2, 2010
Market Update 2010
MARKET UPDATE
September 2010
HOW LOW CAN THEY GO
Mortgage Type Interest Rate APR
30 Year Fixed 3.875% 4.005%
15 Year Fixed 3.500% 3.729%
5/1 ARM 3.000% 3.018%
Interest rates as of 09/01/10. Conforming interest rates. Interest rates and APR based on loan amounts not to exceed $417,000. Loan to values not to exceed 80%. 720+ credit score. Owner occupied only. Purchase and rate in term refinances. Not all applicants will qualify. Call today for your individual scenario rate quote.
FHA STREAMLINES CONTINUE TO SURGE
If you currently have an FHA mortgage with a rate of 5.000% or higher, you may be able to refinance with no appraisal, and little or no closing costs. The recent drop in interest rates have caused an influx of borrowers refinancing to take advantage of the FHA Streamline refinance option. Call today if you have an FHA mortgage at 5.000% or higher. 480-368-2000.
FHA NEEDS CASH
In an effort to increase cash reserves, FHA is modifying the upfront mortgage insurance premium and monthly mortgage insurance charge. Currently the upfront mortgage insurance premium is 2.25% of the loan amount, which is rolled into the base loan amount. The current monthly mortgage insurance fee is .55%, which is part of the monthly mortgage payment.
Effective October 4th, 2010, the upfront mortgage insurance premium will be reduced from 2.25% to 1.0%. The monthly mortgage insurance fee will be raised from .55% to .85% - .95%; which will vary based on certain risk factors of the file.
NATIONAL HOME PRICES UP FOR THE YEAR
“National home prices jumped a substantial 3.6% in the past year, according to the S&P/Case-Shiller Home Price Index released on Tuesday. Prices also climbed 4.4% in the second quarter compared with a 2.8% plunge in the first quarter.” – cnnfn.com
The tax credit is the largest contributing factor for the increase in home prices. Industry insiders predict that home prices will level off, and potentially see a decline in the coming months, now that the tax credit has expired, and employment is not dramatically improving. Without another stimulus from the Federal Government, the housing market will remain shaky for the foreseeable future.
HOME SALES TAKE A BEATING
Home sales hit a 15 year low.
“Existing home sales sank 27.2% in July, twice as much as analysts expected, to a seasonally adjusted annual rate of 3.83 million units. Much of that drop is attributed to the end of the $8,000 homebuyer tax credit.” – cnnfn.com
TAX CREDIT 2010 & DOWNPAYMENT ASSISTANCE
The housing market is on the slide, and there is no hope in the foreseeable future; but there are rumors of help on the way.
A new buzz is stirring about the possibility of a new Government tax credit for home buyers to once again kick start the housing market. Numbers are now surfacing, and it is apparent that the tax credit had a much bigger impact on housing than many critics of the tax credit claimed.
Did someone say “Downpayment Assistance?” H.R. 600 FHA Seller-Financed Downpayment Reform Act of 2009 is not dead; not yet. Downpayment assistance allowed the seller to contribute the buyer’s minimum downpayment on FHA mortgages and was eliminated a couple of years ago when there was a push for everyone to have “skin in the game.” Downpayment assistance allows borrowers to essentially purchase a home with no money down. With the current housing market sputtering to a standstill, downpayment assistance may be making a come back.
If either the tax credit or downpayment assistance resurfaces, the housing market will once again erupt with new buyers coming off the fence and out of the woodwork. Yes, it may just be a short term Band-Aid, but the Government will want to stop the bleeding before there is hemorrhaging.
September 2010
HOW LOW CAN THEY GO
Mortgage Type Interest Rate APR
30 Year Fixed 3.875% 4.005%
15 Year Fixed 3.500% 3.729%
5/1 ARM 3.000% 3.018%
Interest rates as of 09/01/10. Conforming interest rates. Interest rates and APR based on loan amounts not to exceed $417,000. Loan to values not to exceed 80%. 720+ credit score. Owner occupied only. Purchase and rate in term refinances. Not all applicants will qualify. Call today for your individual scenario rate quote.
FHA STREAMLINES CONTINUE TO SURGE
If you currently have an FHA mortgage with a rate of 5.000% or higher, you may be able to refinance with no appraisal, and little or no closing costs. The recent drop in interest rates have caused an influx of borrowers refinancing to take advantage of the FHA Streamline refinance option. Call today if you have an FHA mortgage at 5.000% or higher. 480-368-2000.
FHA NEEDS CASH
In an effort to increase cash reserves, FHA is modifying the upfront mortgage insurance premium and monthly mortgage insurance charge. Currently the upfront mortgage insurance premium is 2.25% of the loan amount, which is rolled into the base loan amount. The current monthly mortgage insurance fee is .55%, which is part of the monthly mortgage payment.
Effective October 4th, 2010, the upfront mortgage insurance premium will be reduced from 2.25% to 1.0%. The monthly mortgage insurance fee will be raised from .55% to .85% - .95%; which will vary based on certain risk factors of the file.
NATIONAL HOME PRICES UP FOR THE YEAR
“National home prices jumped a substantial 3.6% in the past year, according to the S&P/Case-Shiller Home Price Index released on Tuesday. Prices also climbed 4.4% in the second quarter compared with a 2.8% plunge in the first quarter.” – cnnfn.com
The tax credit is the largest contributing factor for the increase in home prices. Industry insiders predict that home prices will level off, and potentially see a decline in the coming months, now that the tax credit has expired, and employment is not dramatically improving. Without another stimulus from the Federal Government, the housing market will remain shaky for the foreseeable future.
HOME SALES TAKE A BEATING
Home sales hit a 15 year low.
“Existing home sales sank 27.2% in July, twice as much as analysts expected, to a seasonally adjusted annual rate of 3.83 million units. Much of that drop is attributed to the end of the $8,000 homebuyer tax credit.” – cnnfn.com
TAX CREDIT 2010 & DOWNPAYMENT ASSISTANCE
The housing market is on the slide, and there is no hope in the foreseeable future; but there are rumors of help on the way.
A new buzz is stirring about the possibility of a new Government tax credit for home buyers to once again kick start the housing market. Numbers are now surfacing, and it is apparent that the tax credit had a much bigger impact on housing than many critics of the tax credit claimed.
Did someone say “Downpayment Assistance?” H.R. 600 FHA Seller-Financed Downpayment Reform Act of 2009 is not dead; not yet. Downpayment assistance allowed the seller to contribute the buyer’s minimum downpayment on FHA mortgages and was eliminated a couple of years ago when there was a push for everyone to have “skin in the game.” Downpayment assistance allows borrowers to essentially purchase a home with no money down. With the current housing market sputtering to a standstill, downpayment assistance may be making a come back.
If either the tax credit or downpayment assistance resurfaces, the housing market will once again erupt with new buyers coming off the fence and out of the woodwork. Yes, it may just be a short term Band-Aid, but the Government will want to stop the bleeding before there is hemorrhaging.
Friday, August 27, 2010
July Existing-Home Sales Fall, But Prices Rise
Existing-home sales were sharply lower in July following expiration of the home buyer tax credit but home prices continued to gain, according to the National Association of REALTORS®.
Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums, and co-ops, dropped 27.2 percent to a seasonally adjusted annual rate of 3.83 million units in July from a downwardly revised 5.26 million in June, and are 25.5 percent below the 5.14 million-unit level in July 2009. Sales are at the lowest level since the total existing-home sales series launched in 1999, and single family sales – accounting for the bulk of transactions – are at the lowest level since May of 1995.
Lawrence Yun, NAR chief economist, said a soft sales pace likely will continue for a few additional months. “Consumers rationally jumped into the market before the deadline for the home buyer tax credit expired. Since May, after the deadline, contract signings have been notably lower and a pause period for home sales is likely to last through September,” he said. “However, given the rock-bottom mortgage interest rates and historically high housing affordability conditions, the pace of a sales recovery could pick up quickly, provided the economy consistently adds jobs.
“Even with sales pausing for a few months, annual sales are expected to reach 5 million in 2010 because of healthy activity in the first half of the year. To place in perspective, annual sales averaged 4.9 million in the past 20 years, and 4.4 million over the past 30 years,” Yun added.
Mortgage Rates Dip
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.56 percent in July from 4.74 percent in June; the rate was 5.22 percent in July 2009. Last week, Freddie Mac reported the 30-year fixed was down to 4.42 percent.
The national median existing-home price for all housing types was $182,600 in July, up 0.7 percent from a year ago. Distressed home sales are unchanged from June, accounting for 32 percent of transactions in July; they were 31 percent in July 2009.
“Thanks to the home buyer tax credit, home values have been stable for the past 18 months despite heavy job losses,” Yun said. “Over the short term, high supply in relation to demand clearly favors buyers. However, given that home values are back in line relative to income, and from very low new-home construction, there is not likely to be any measurable change in home prices going forward.”
Inventory Rises
Total housing inventory at the end of July increased 2.5 percent to 3.98 million existing homes available for sale, which represents a 12.5-month supply at the current sales pace, up from an 8.9-month supply in June. Raw unsold inventory is still 12.9 percent below the record of 4.58 million in July 2008.
NAR President Vicki Cox Golder said there are great opportunities now for buyers who weren’t able to take advantage of the tax credit. “Mortgage interest rates are at record lows, home prices have firmed and there is good selection of property in most areas, so buyers with good jobs and favorable credit ratings find themselves in a fortunate position,” she said.
A parallel NAR practitioner survey shows first-time buyers purchased 38 percent of homes in July, down from 43 percent in June. Investors accounted for 19 percent of sales in July, up from 13 percent in June; the balance were to repeat buyers. All-cash sales rose to 30 percent in July from 24 percent in June.
Breakdown of the Numbers
• Single-family home sales dropped 27.1 percent to a seasonally adjusted annual rate of 3.37 million in July from a pace of 4.62 million in June, and are 25.6 percent below the 4.53 million level in July 2009; they were the lowest since May 1995 when the sales rate was 3.34 million.
• The median existing single-family home price was $183,400 in July, which is 0.9 percent above a year ago.
• Single-family median existing-home prices were higher in 11 out of 19 metropolitan statistical areas reported in July in comparison with July 2009 (the price in one of 20 tracked markets was not available). However, existing single-family home sales fell in all 20 areas from a year ago.
• Existing condominium and co-op sales fell 28.1 percent to a seasonally adjusted annual rate of 460,000 in July from 640,000 in June, and are 24.0 percent below the 605,000-unit level in July 2009. The median existing condo price was $176,800 in July, down 1.7 percent from a year ago.
By Region
• Existing-home sales in the Northeast dropped 29.5 percent to an annual pace of 620,000 in July and are 30.3 percent lower than a year ago. The median price in the Northeast was $263,800, up 4.8 percent from July 2009.
• Existing-home sales in the Midwest fell 35.0 percent in July to a level of 800,000 and are 33.3 percent below July 2009. The median price in the Midwest was $151,600, down 2.8 percent from a year ago.
• In the South, existing-home sales dropped 22.6 percent to an annual pace of 1.54 million in July and are 19.8 percent below a year ago. The median price in the South was $156,300, down 3.3 percent from July 2009.
• Existing-home sales in the West fell 25.0 percent to an annual level of 870,000 in July and are 23.0 percent below a year ago. The median price in the West was $224,800, up 3.3 percent from July 2009.
Source: NAR
Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums, and co-ops, dropped 27.2 percent to a seasonally adjusted annual rate of 3.83 million units in July from a downwardly revised 5.26 million in June, and are 25.5 percent below the 5.14 million-unit level in July 2009. Sales are at the lowest level since the total existing-home sales series launched in 1999, and single family sales – accounting for the bulk of transactions – are at the lowest level since May of 1995.
Lawrence Yun, NAR chief economist, said a soft sales pace likely will continue for a few additional months. “Consumers rationally jumped into the market before the deadline for the home buyer tax credit expired. Since May, after the deadline, contract signings have been notably lower and a pause period for home sales is likely to last through September,” he said. “However, given the rock-bottom mortgage interest rates and historically high housing affordability conditions, the pace of a sales recovery could pick up quickly, provided the economy consistently adds jobs.
“Even with sales pausing for a few months, annual sales are expected to reach 5 million in 2010 because of healthy activity in the first half of the year. To place in perspective, annual sales averaged 4.9 million in the past 20 years, and 4.4 million over the past 30 years,” Yun added.
Mortgage Rates Dip
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.56 percent in July from 4.74 percent in June; the rate was 5.22 percent in July 2009. Last week, Freddie Mac reported the 30-year fixed was down to 4.42 percent.
The national median existing-home price for all housing types was $182,600 in July, up 0.7 percent from a year ago. Distressed home sales are unchanged from June, accounting for 32 percent of transactions in July; they were 31 percent in July 2009.
“Thanks to the home buyer tax credit, home values have been stable for the past 18 months despite heavy job losses,” Yun said. “Over the short term, high supply in relation to demand clearly favors buyers. However, given that home values are back in line relative to income, and from very low new-home construction, there is not likely to be any measurable change in home prices going forward.”
Inventory Rises
Total housing inventory at the end of July increased 2.5 percent to 3.98 million existing homes available for sale, which represents a 12.5-month supply at the current sales pace, up from an 8.9-month supply in June. Raw unsold inventory is still 12.9 percent below the record of 4.58 million in July 2008.
NAR President Vicki Cox Golder said there are great opportunities now for buyers who weren’t able to take advantage of the tax credit. “Mortgage interest rates are at record lows, home prices have firmed and there is good selection of property in most areas, so buyers with good jobs and favorable credit ratings find themselves in a fortunate position,” she said.
A parallel NAR practitioner survey shows first-time buyers purchased 38 percent of homes in July, down from 43 percent in June. Investors accounted for 19 percent of sales in July, up from 13 percent in June; the balance were to repeat buyers. All-cash sales rose to 30 percent in July from 24 percent in June.
Breakdown of the Numbers
• Single-family home sales dropped 27.1 percent to a seasonally adjusted annual rate of 3.37 million in July from a pace of 4.62 million in June, and are 25.6 percent below the 4.53 million level in July 2009; they were the lowest since May 1995 when the sales rate was 3.34 million.
• The median existing single-family home price was $183,400 in July, which is 0.9 percent above a year ago.
• Single-family median existing-home prices were higher in 11 out of 19 metropolitan statistical areas reported in July in comparison with July 2009 (the price in one of 20 tracked markets was not available). However, existing single-family home sales fell in all 20 areas from a year ago.
• Existing condominium and co-op sales fell 28.1 percent to a seasonally adjusted annual rate of 460,000 in July from 640,000 in June, and are 24.0 percent below the 605,000-unit level in July 2009. The median existing condo price was $176,800 in July, down 1.7 percent from a year ago.
By Region
• Existing-home sales in the Northeast dropped 29.5 percent to an annual pace of 620,000 in July and are 30.3 percent lower than a year ago. The median price in the Northeast was $263,800, up 4.8 percent from July 2009.
• Existing-home sales in the Midwest fell 35.0 percent in July to a level of 800,000 and are 33.3 percent below July 2009. The median price in the Midwest was $151,600, down 2.8 percent from a year ago.
• In the South, existing-home sales dropped 22.6 percent to an annual pace of 1.54 million in July and are 19.8 percent below a year ago. The median price in the South was $156,300, down 3.3 percent from July 2009.
• Existing-home sales in the West fell 25.0 percent to an annual level of 870,000 in July and are 23.0 percent below a year ago. The median price in the West was $224,800, up 3.3 percent from July 2009.
Source: NAR
Foreclosures Down, But Late Payments Up
Foreclosures Down, But Late Payments Up
The wave of foreclosures appears to be subsiding slightly. According to data from Mortgage Bankers Association’s National Delinquency Survey:
• The percentage of loans on which foreclosure action were started during the second quarter was 1.11 percent, down 12 basis points from last quarter and down 25 basis points from one year ago.
• The percentage of loans in the foreclosure process at the end of the second quarter was 4.57 percent, a decrease of six basis points from the first quarter of 2010, but an increase of 27 basis points from one year ago.
• Loans that were 90 days or more past due or in the process of foreclosure was 9.11 percent, a decrease of 43 basis points from first quarter, but an increase of 114 basis points compared to the second quarter of last year.
“The good news is that foreclosure starts are down, and the inventory of homes anywhere in the process of foreclosure fell for the first time since 2006 and had the largest drop since 2005,” says Jay Brinkmann, MBA’s chief economist.
The bad news is that the percent of loans one payment behind had peaked in the first quarter of 2009 at 3.77 percent and fell to 3.31 percent by the end of 2009. Now that rate has risen to 3.51 percent.
“Only when we see a consistent increase in employment will we see an increase in sales and starts, and a sustained improvement in the delinquency numbers,” Brinkmann adds.
Source: Mortgage Bankers Association (08/26/2010)
The wave of foreclosures appears to be subsiding slightly. According to data from Mortgage Bankers Association’s National Delinquency Survey:
• The percentage of loans on which foreclosure action were started during the second quarter was 1.11 percent, down 12 basis points from last quarter and down 25 basis points from one year ago.
• The percentage of loans in the foreclosure process at the end of the second quarter was 4.57 percent, a decrease of six basis points from the first quarter of 2010, but an increase of 27 basis points from one year ago.
• Loans that were 90 days or more past due or in the process of foreclosure was 9.11 percent, a decrease of 43 basis points from first quarter, but an increase of 114 basis points compared to the second quarter of last year.
“The good news is that foreclosure starts are down, and the inventory of homes anywhere in the process of foreclosure fell for the first time since 2006 and had the largest drop since 2005,” says Jay Brinkmann, MBA’s chief economist.
The bad news is that the percent of loans one payment behind had peaked in the first quarter of 2009 at 3.77 percent and fell to 3.31 percent by the end of 2009. Now that rate has risen to 3.51 percent.
“Only when we see a consistent increase in employment will we see an increase in sales and starts, and a sustained improvement in the delinquency numbers,” Brinkmann adds.
Source: Mortgage Bankers Association (08/26/2010)
Monday, August 9, 2010
Housing Tax Credit was like a Painkiller
Housing Tax Credit was like a Painkiller…Posted on 29 Jul, 2010 by admin According to a CNN Money article, “The tax credit was like a painkiller for the housing market, but we’ll have to go into surgery to deal with the underlying problems…”
I certainly can’t speak for the rest of you, but surgery isn’t exactly a fun experience. The housing market has taken it’s bumps and bruises, broken bones, etc., but the bandages have to be addressed properly, not just put on tighter. With any injury, if you’re following the proper treatment procedures, you should follow the RICE method. Rest, Ice, Compression, Elevation…
What does this mean as translation for the housing market? How about TIRE – (T) Tax Credits for Buyers to stimulate offers, (I) Inventory Reduction, (R) Regulation of the banks to accept reasonable offers on properties, (E) Expedition of these submitted offers.
There are many problems within the system, each having a different solution. Buyers are backing out of deals because of the lengthy timeline, and because there is so much inventory on the market, they can find a new property that may not need to be approved. Offering continued tax credits to buyers will offer incentives for them to continue purchasing, it’s proven that this solution worked. Temporary regulation of the lenders to approve reasonable offers, and expediting the process will correct the tumbling housing market.
Until the time where this TIRE method comes to light, the market shifts, and property values continue to rise, we will see a very slow recovery to this housing market crisis. If property values continue to dip as they have, and homeowners owe more than their house is worth, anytime they want or need to sell within the next 10-15 years, depending on the market, it will be a Short Sale.
It would be a shame if the real estate market was still in a cycle 15 years from now, where the term “Short Sale” was as popular as it’s become today. That would simply mean, that bandage was just put on way too tight!
I certainly can’t speak for the rest of you, but surgery isn’t exactly a fun experience. The housing market has taken it’s bumps and bruises, broken bones, etc., but the bandages have to be addressed properly, not just put on tighter. With any injury, if you’re following the proper treatment procedures, you should follow the RICE method. Rest, Ice, Compression, Elevation…
What does this mean as translation for the housing market? How about TIRE – (T) Tax Credits for Buyers to stimulate offers, (I) Inventory Reduction, (R) Regulation of the banks to accept reasonable offers on properties, (E) Expedition of these submitted offers.
There are many problems within the system, each having a different solution. Buyers are backing out of deals because of the lengthy timeline, and because there is so much inventory on the market, they can find a new property that may not need to be approved. Offering continued tax credits to buyers will offer incentives for them to continue purchasing, it’s proven that this solution worked. Temporary regulation of the lenders to approve reasonable offers, and expediting the process will correct the tumbling housing market.
Until the time where this TIRE method comes to light, the market shifts, and property values continue to rise, we will see a very slow recovery to this housing market crisis. If property values continue to dip as they have, and homeowners owe more than their house is worth, anytime they want or need to sell within the next 10-15 years, depending on the market, it will be a Short Sale.
It would be a shame if the real estate market was still in a cycle 15 years from now, where the term “Short Sale” was as popular as it’s become today. That would simply mean, that bandage was just put on way too tight!
Wednesday, July 28, 2010
Home prices show stability after modest gain
Very Interesting with ALL the hype floating around with the market dropping 10%.. I dont agree! Read Below :-)
NEW YORK (CNNMoney.com) -- Home prices rose slightly in May compared with a month earlier, appearing to have stablized at the lower levels that followed the end of the residential real estate bubble, according to the S&P/Case-Shiller Home Price Index of 20 major housing markets released Tuesday.
Prices were up 1.3% from April, and 4.6% from 12 months earlier.
The price rise might have reflected one of the last gasps of the government's incentive program, which paid tax refunds of as much as $8,000 to homebuyers if they signed a sales contract before May 1.
"It does look like the market was boosted by the tax credit," said Robert Dye, senior economist for PNC Financial Services. "It seems to have pulled some of the demand forward."
Although the increase was welcome news for the beleaguered housing market, S&P spokesman David Blitzer downplayed the gain.
"While May's report on its own looks somewhat positive, a broader look at home price levels over the past year still do not indicate that the housing market is in any form of sustained recovery," he said. "Since reaching its recent trough in April 2009, the housing market has really only stabilized at this lower level. The last seven months have basically been flat."
Home prices peaked back in July 2006 and fell for 33 straight months before bottoming out in April 2009. The peak-to-trough decline came to more than 32%.
The index went on a short upswing for five months, regaining 5.3% of its loss before turning tail again, declining 2.2% before a modest rebound in April.
Winners and one loser
Only one of the 20 metro areas, Las Vegas, reported a price decline for May, with a 0.5% loss. Minneapolis had the largest spike: prices jumped 2.8% and were up 11.6% over the prior 12 months.
San Francisco had the largest year-over-year gain, 18.3% higher than May 2009. San Diego, at 12.4%, and Los Angeles, at 9.7%, have also posted healthy year-over-year gains.
In a way, the index may understate its positive results. It counts all sales, including distressed properties. Those have become a major component of the market, with short sales and bank repossessions accounting for close to a third of all sales.
Repossessions sell, on average, for 27% less than conventional sales, according to a recent report from MIT economist Parag Pathak and two Harvard researchers, John Campbell and Stefano Giglio.
"It's not surprising that there is a discount due to foreclosure," said Pathak in a release. "But it is surprising that it's so large."
The repossession discount comes from a couple of factors. Borrowers who lose their homes to foreclosure may not have had the funds or the incentive to maintain their homes well. The homes often come onto the market in poor condition, lowering their values.
In addition, lenders often want to sell the homes very quickly to avoid all the expenses of home ownership - taxes, utilities, insurance and maintenance - so they're willing to sell at far below comparable homes.
Maureen Maitland, vice president for index services at S&P, said foreclosure and short sale data is included in the index because they represent such a big part of the market. "In some metro areas they're 50% to 60% of sales," she said.
They're expected to remain so for a long time. The run rate for bank repossessions so far this year indicates more than a million homes will be lost to foreclosure and put back on the market by the banks.
That will extend the overhang on inventory, which along with the end of the tax credit will probably keep prices down for at least the summer months, according to Maitland.
It may be autumn, if then, before improvement in the economy puts housing markets back on a firm footing, according to Dye.
"Housing has firmed up since the dark days of 2008 and 2009, but it's still wobbly," he said.
NEW YORK (CNNMoney.com) -- Home prices rose slightly in May compared with a month earlier, appearing to have stablized at the lower levels that followed the end of the residential real estate bubble, according to the S&P/Case-Shiller Home Price Index of 20 major housing markets released Tuesday.
Prices were up 1.3% from April, and 4.6% from 12 months earlier.
The price rise might have reflected one of the last gasps of the government's incentive program, which paid tax refunds of as much as $8,000 to homebuyers if they signed a sales contract before May 1.
"It does look like the market was boosted by the tax credit," said Robert Dye, senior economist for PNC Financial Services. "It seems to have pulled some of the demand forward."
Although the increase was welcome news for the beleaguered housing market, S&P spokesman David Blitzer downplayed the gain.
"While May's report on its own looks somewhat positive, a broader look at home price levels over the past year still do not indicate that the housing market is in any form of sustained recovery," he said. "Since reaching its recent trough in April 2009, the housing market has really only stabilized at this lower level. The last seven months have basically been flat."
Home prices peaked back in July 2006 and fell for 33 straight months before bottoming out in April 2009. The peak-to-trough decline came to more than 32%.
The index went on a short upswing for five months, regaining 5.3% of its loss before turning tail again, declining 2.2% before a modest rebound in April.
Winners and one loser
Only one of the 20 metro areas, Las Vegas, reported a price decline for May, with a 0.5% loss. Minneapolis had the largest spike: prices jumped 2.8% and were up 11.6% over the prior 12 months.
San Francisco had the largest year-over-year gain, 18.3% higher than May 2009. San Diego, at 12.4%, and Los Angeles, at 9.7%, have also posted healthy year-over-year gains.
In a way, the index may understate its positive results. It counts all sales, including distressed properties. Those have become a major component of the market, with short sales and bank repossessions accounting for close to a third of all sales.
Repossessions sell, on average, for 27% less than conventional sales, according to a recent report from MIT economist Parag Pathak and two Harvard researchers, John Campbell and Stefano Giglio.
"It's not surprising that there is a discount due to foreclosure," said Pathak in a release. "But it is surprising that it's so large."
The repossession discount comes from a couple of factors. Borrowers who lose their homes to foreclosure may not have had the funds or the incentive to maintain their homes well. The homes often come onto the market in poor condition, lowering their values.
In addition, lenders often want to sell the homes very quickly to avoid all the expenses of home ownership - taxes, utilities, insurance and maintenance - so they're willing to sell at far below comparable homes.
Maureen Maitland, vice president for index services at S&P, said foreclosure and short sale data is included in the index because they represent such a big part of the market. "In some metro areas they're 50% to 60% of sales," she said.
They're expected to remain so for a long time. The run rate for bank repossessions so far this year indicates more than a million homes will be lost to foreclosure and put back on the market by the banks.
That will extend the overhang on inventory, which along with the end of the tax credit will probably keep prices down for at least the summer months, according to Maitland.
It may be autumn, if then, before improvement in the economy puts housing markets back on a firm footing, according to Dye.
"Housing has firmed up since the dark days of 2008 and 2009, but it's still wobbly," he said.
Friday, July 23, 2010
Exhaust all options prior to foreclosure, or should I just let it go?
We speak to people every day that have it embedded in their mind to just let their property go to foreclosure. One of the main reasons for this, is they don’t know the options in order to avoid foreclosure in the first place.
The biggest item of consideration with this decision is the impact on credit. A foreclosure has a very aggressive impact on credit, both immediately, and in the future. Most importantly, every time a loan application is filled out, you will always need to inform the potential lender that you have a foreclosure in your past. This is a huge red flag for lenders when attempting to get a loan in the future.
Each of the alternatives to foreclosure can help you avoid both the short term and the long term stress. Whether it be an attempt to modify the mortgage, sell the property prior to the foreclosure date through a Short Sale, each will have a less damaging impact on your credit. Depending on the terms of the negotiation, it can show on credit as a settlement or as paid in full. The ramifications of this are less damaging.
Lenders are speeding up their processes for successful short sales of properties, so it is possible that your lender will move swiftly to get your property sold. Whether it is through the Foreclosure process or the short sale process, there is one guarantee. You will have to move.
Ultimately, the question that needs to be asked is are you willing to deal with the long term stress of future inability to obtain a loan, or will you exhaust all options prior to moving? There is plenty of help available to restore credit, and according to most of the information given, you can obtain a loan after a short sale as soon 2 years, whereas through the foreclosure process, not for 7-10 years.
Exhaust all options, you deserve it.
The biggest item of consideration with this decision is the impact on credit. A foreclosure has a very aggressive impact on credit, both immediately, and in the future. Most importantly, every time a loan application is filled out, you will always need to inform the potential lender that you have a foreclosure in your past. This is a huge red flag for lenders when attempting to get a loan in the future.
Each of the alternatives to foreclosure can help you avoid both the short term and the long term stress. Whether it be an attempt to modify the mortgage, sell the property prior to the foreclosure date through a Short Sale, each will have a less damaging impact on your credit. Depending on the terms of the negotiation, it can show on credit as a settlement or as paid in full. The ramifications of this are less damaging.
Lenders are speeding up their processes for successful short sales of properties, so it is possible that your lender will move swiftly to get your property sold. Whether it is through the Foreclosure process or the short sale process, there is one guarantee. You will have to move.
Ultimately, the question that needs to be asked is are you willing to deal with the long term stress of future inability to obtain a loan, or will you exhaust all options prior to moving? There is plenty of help available to restore credit, and according to most of the information given, you can obtain a loan after a short sale as soon 2 years, whereas through the foreclosure process, not for 7-10 years.
Exhaust all options, you deserve it.
Wednesday, July 21, 2010
Mortgage Rates Fall to 4.59%, Enough To Move Demand
By Nick Timiraos
Finally.
Record low mortgage rates spurred an uptick in new-purchase mortgage applications last week for just the second time in the past two months, while more Americans also applied to refinance, according to the Mortgage Bankers Association.
Rates fell last week to 4.59% on an average 30-year fixed-rate mortgage, which is down from 4.69% one week ago and the lowest ever recorded by the trade group since its survey began in 1972. Other measures show that rates continued to fall this week: Zillow’s Mortgage Marketplace quoted an average of 4.37% on Tuesday.
Those low rates haven’t done much to drive up demand for new home loans in recent weeks. Purchase activity is still more than 40% down from its highs of April, though it ticked up by 3.4% last week. That’s largely because home-buyer tax credits pulled demand forward. But the recent drop in applications to 14-year lows “smacks of more than a temporary, one-off fall in activity,” says Paul Dales, chief economist at Capital Economics.
Refinance activity has held up better because it’s driven much more by low rates than other economic factors that go into buying a house. Refinance applications were up by 9% last week and are up by almost 30% over the past four weeks, though activity is still below the near-term May 2009 peak. Around 80% of mortgage activity last week was for refinances, the highest refinance share since April 2009.
Still, refinancing activity isn’t as high as would be expected at current rates, in part because it’s harder to get a loan today. Also, many borrowers have lost equity or taken a hit to their incomes or credit and either can’t qualify or aren’t willing to pay extra fees that come with being a bigger credit risk.
Of course, it doesn’t make sense for everyone to refinance. Borrowers who plan to sell in the next few years will want to think twice about paying closing costs to get a low rate. Also, borrowers who’ve had their loans for a long time—and are therefore paying a greater share of their payment towards their loan principal, as opposed to interest—may not want to refinance.
Finally.
Record low mortgage rates spurred an uptick in new-purchase mortgage applications last week for just the second time in the past two months, while more Americans also applied to refinance, according to the Mortgage Bankers Association.
Rates fell last week to 4.59% on an average 30-year fixed-rate mortgage, which is down from 4.69% one week ago and the lowest ever recorded by the trade group since its survey began in 1972. Other measures show that rates continued to fall this week: Zillow’s Mortgage Marketplace quoted an average of 4.37% on Tuesday.
Those low rates haven’t done much to drive up demand for new home loans in recent weeks. Purchase activity is still more than 40% down from its highs of April, though it ticked up by 3.4% last week. That’s largely because home-buyer tax credits pulled demand forward. But the recent drop in applications to 14-year lows “smacks of more than a temporary, one-off fall in activity,” says Paul Dales, chief economist at Capital Economics.
Refinance activity has held up better because it’s driven much more by low rates than other economic factors that go into buying a house. Refinance applications were up by 9% last week and are up by almost 30% over the past four weeks, though activity is still below the near-term May 2009 peak. Around 80% of mortgage activity last week was for refinances, the highest refinance share since April 2009.
Still, refinancing activity isn’t as high as would be expected at current rates, in part because it’s harder to get a loan today. Also, many borrowers have lost equity or taken a hit to their incomes or credit and either can’t qualify or aren’t willing to pay extra fees that come with being a bigger credit risk.
Of course, it doesn’t make sense for everyone to refinance. Borrowers who plan to sell in the next few years will want to think twice about paying closing costs to get a low rate. Also, borrowers who’ve had their loans for a long time—and are therefore paying a greater share of their payment towards their loan principal, as opposed to interest—may not want to refinance.
Tuesday, July 20, 2010
Banks Repossess US homes at a record pace
Compliments of Green Street Realty
Banks Repossess US homes at a record pacePosted on 19 Jul, 2010 by admin If you were running the US Government, and had the choice on how to resuscitate the Real Estate housing economy, how would you do it? Would your answer be 1) to have the lenders repossess homes, that will eventually go back on the market at a slashed price in order to sell them fast, or 2) would you force the lenders to take a reasonable offer at or near current market value, get a new homeowner into the home at a fixed interest rate for 30 years?
An ideal situation would be option number 2, but there are so many investor backed loans that lenders are being forced to gamble by refusing these reasonable offers. The investor will take a hit, no matter the circumstance, but why take more of a hit by seeking the alternative?
We feel, that it’s time for the economy to rebound, but putting houses back on the market at a slashed price, after they’ve been foreclosed on, only continues to drive the value of the rest of the properties in the subdivision much lower than is necessary.
At some point, someone will do the math and understand when the time is right to stop the foreclosure process and start following the rules of the short sale. Take less of a hit now, get the property off the lenders’ books, and move on. At face value, it’s a win-win-win situation for everyone involved. There has to be something much deeper than what is seen at face value. Maybe it’s a bonus on the back end for the investor by taking it to auction. When doe the greater good for the economy outweigh the individual outcome of this foreclosure process?
As the market continues to tumble, we may look to the repossession of these homes by lenders as a reason for the continued struggle.
Banks Repossess US homes at a record pacePosted on 19 Jul, 2010 by admin If you were running the US Government, and had the choice on how to resuscitate the Real Estate housing economy, how would you do it? Would your answer be 1) to have the lenders repossess homes, that will eventually go back on the market at a slashed price in order to sell them fast, or 2) would you force the lenders to take a reasonable offer at or near current market value, get a new homeowner into the home at a fixed interest rate for 30 years?
An ideal situation would be option number 2, but there are so many investor backed loans that lenders are being forced to gamble by refusing these reasonable offers. The investor will take a hit, no matter the circumstance, but why take more of a hit by seeking the alternative?
We feel, that it’s time for the economy to rebound, but putting houses back on the market at a slashed price, after they’ve been foreclosed on, only continues to drive the value of the rest of the properties in the subdivision much lower than is necessary.
At some point, someone will do the math and understand when the time is right to stop the foreclosure process and start following the rules of the short sale. Take less of a hit now, get the property off the lenders’ books, and move on. At face value, it’s a win-win-win situation for everyone involved. There has to be something much deeper than what is seen at face value. Maybe it’s a bonus on the back end for the investor by taking it to auction. When doe the greater good for the economy outweigh the individual outcome of this foreclosure process?
As the market continues to tumble, we may look to the repossession of these homes by lenders as a reason for the continued struggle.
Subscribe to:
Posts (Atom)