If you missed the April 30 homebuyer tax credit deadline without snagging a house, pat yourself on the back: You just may turn out to be one of the lucky ones.
While the credit is now history, savvy buyers may be able to make up that money -- and then some -- through some shrewd house hunting over the next two months, industry experts say.
"Savvy buyers can put their feet back into the market," says Rona Fischman, principal broker at 4 Buyers Real Estate in Cambridge, Mass. "It will be more sane and less of a sellers' market."
Thanks to the tax credit, buyers came into the market over the past year who otherwise might have waited on the sidelines, says Olivier Garret, chief executive officer of Casey Research in Stowe, Vt.
Click here to read entire article: Good times ahead for the homebuyer?...
Big Push on Capitol Hill for Real Estate Reforms
REALTORS® are asking Congress to strengthen the Federal Housing Administration, extend the FHA's high-cost loan limits, and get flood and disaster insurance reforms passed as part of their push on Capitol Hill this week during NAR 2010 Midyear Legislative Meetings & Trade Expo.
Several thousand REALTORS® are in town and will be meeting with members of Congress over two days this week. Here's a look at some of REALTORS®' top legislative priorities:
Support for small business. REALTORS® would like the government to help small businesses get much-needed financing by allowing federal credit unions to loan a higher percentage of their assets than they can now. The increase is needed to help offset the difficulty small businesses are facing in getting loans from banks.
Click here to read: Big Push on Capitol Hill for Real Estate Reforms...
Several thousand REALTORS® are in town and will be meeting with members of Congress over two days this week. Here's a look at some of REALTORS®' top legislative priorities:
Support for small business. REALTORS® would like the government to help small businesses get much-needed financing by allowing federal credit unions to loan a higher percentage of their assets than they can now. The increase is needed to help offset the difficulty small businesses are facing in getting loans from banks.
Click here to read: Big Push on Capitol Hill for Real Estate Reforms...
Foreclosure Filings Ebb in U.S., But Utah Rate Remains Among Top
The foreclosure crisis in many parts of the country is finally showing signs of subsiding, but Utah remains among states where the problem continues to grow.
The number of U.S. households facing foreclosure in April fell 2 percent from a year ago, the first annual decline in five years, RealtyTrac Inc. said. In Utah, however, the number of households jumped nearly 44 percent over the same time period.
According to the report, Utah is ranked fifth among all states in foreclosure filings, behind only Nevada, Arizona, Florida and California.
RealtyTrac tracks foreclosure-related filings ranging from delinquencies, when a borrower falls behind on their mortgage, to the point when a bank reclaims possession of a property. Although the number of new delinquencies nationally is dropping nationwide, the number of borrowers losing their homes is still rising. Banks seized a record 92,000 homes last month.
Click here to read: Foreclosure filings ebb in U.S., but Utah rate remains among top...
The number of U.S. households facing foreclosure in April fell 2 percent from a year ago, the first annual decline in five years, RealtyTrac Inc. said. In Utah, however, the number of households jumped nearly 44 percent over the same time period.
According to the report, Utah is ranked fifth among all states in foreclosure filings, behind only Nevada, Arizona, Florida and California.
RealtyTrac tracks foreclosure-related filings ranging from delinquencies, when a borrower falls behind on their mortgage, to the point when a bank reclaims possession of a property. Although the number of new delinquencies nationally is dropping nationwide, the number of borrowers losing their homes is still rising. Banks seized a record 92,000 homes last month.
Click here to read: Foreclosure filings ebb in U.S., but Utah rate remains among top...
Single Women Home Buyers: Key to the Housing Recovery?
Looking to sell your home? Make sure you don't overlook single women as potential buyers. A recent National Association of Realtors report found that single women outdistanced unmarried men when it came to buying real estate in 2009.
Unmarried women made 21 percent of home purchases, while single guys made up 10 percent of the buyers. According to the research, single females also made up a quarter of first time-home buyers.
This wasn't always the case. In 1995, single women represented only 14 percent of home buyers. But in recent years, they have raced ahead of their male counterparts in snapping up real estate.
Click here to read: Single Women Home Buyers: Key to the Housing Recovery?...
Unmarried women made 21 percent of home purchases, while single guys made up 10 percent of the buyers. According to the research, single females also made up a quarter of first time-home buyers.
This wasn't always the case. In 1995, single women represented only 14 percent of home buyers. But in recent years, they have raced ahead of their male counterparts in snapping up real estate.
Click here to read: Single Women Home Buyers: Key to the Housing Recovery?...
The Unique Advantages Of VA Mortgages
There was a time when Veterans Administration (VA) loans were so time-consuming to obtain that lenders did not want to process them and home sellers were likely to reject offers from buyers planning to finance with VA loans. Thanks to changes in the system, it has become much easier to take advantage of the unique benefits offered by VA loans.
VA loans are offered through the Veterans Administration, a U.S. government organization that provides benefits and services to eligible veterans, active duty, reservists and National Guard members along with their families. While the VA does encourage lenders to offer these loans by guaranteeing to repay a significant percentage of any loan that goes into default, VA loans are actually made by private lenders, not by the VA itself. This means that the lender, not the VA, determines whether a borrower is eligible for a loan and what loan terms the borrower qualifies for. As such, it's still important to shop around for the best deal on a VA mortgage.
Click here to read: The Unique Advantages Of VA Mortgages...
VA loans are offered through the Veterans Administration, a U.S. government organization that provides benefits and services to eligible veterans, active duty, reservists and National Guard members along with their families. While the VA does encourage lenders to offer these loans by guaranteeing to repay a significant percentage of any loan that goes into default, VA loans are actually made by private lenders, not by the VA itself. This means that the lender, not the VA, determines whether a borrower is eligible for a loan and what loan terms the borrower qualifies for. As such, it's still important to shop around for the best deal on a VA mortgage.
Click here to read: The Unique Advantages Of VA Mortgages...
Your Worst Credit Problems Are Not As Bad As You Think!
There's a cruel irony to navigating your finances amid the ongoing credit crunch.
On the one hand, maintaining a great credit rating is more important than ever – especially if you're looking for a job or need a loan of any kind. On the other hand, if you mess up royally in the credit department, rest assured that even the worst credit mistakes you can make probably aren't as bad as you fear.
Here's a look at a couple of the most severe credit catastrophes you can face – and why none of them is fatal to your financial life.
Click to read: Your worst credit problems are not as bad as you think...
On the one hand, maintaining a great credit rating is more important than ever – especially if you're looking for a job or need a loan of any kind. On the other hand, if you mess up royally in the credit department, rest assured that even the worst credit mistakes you can make probably aren't as bad as you fear.
Here's a look at a couple of the most severe credit catastrophes you can face – and why none of them is fatal to your financial life.
Click to read: Your worst credit problems are not as bad as you think...
Freddie and Fannie Won't Pay Down Your Mortgage
Pressure is mounting on loan servicers and investors to reduce troubled homeowners' loan balances...but the two largest owners of mortgages aren't getting the message.
Fannie Mae and Freddie Mac, which are controlled by the federal government, do not lower the principal on the loans they back, instead opting for interest rate reductions and term extensions when modifying loans.
But their stance is out of synch with the Obama administration, which is seeking to expand the use of principal writedowns. In late March, it announced servicers will be required to consider lowering balances in loan modifications.
Click to read: Freddie and Fannie won't pay down your mortgage...
Fannie Mae and Freddie Mac, which are controlled by the federal government, do not lower the principal on the loans they back, instead opting for interest rate reductions and term extensions when modifying loans.
But their stance is out of synch with the Obama administration, which is seeking to expand the use of principal writedowns. In late March, it announced servicers will be required to consider lowering balances in loan modifications.
Click to read: Freddie and Fannie won't pay down your mortgage...
Home Prices Could Sink Without Tax Credit
Home prices are widely expected to fall now that a tax credit for home buyers has expired.
That's raising concern about a possible double dip in home prices.
National housing prices stopped falling early last year and rose 0.3% over the 12 months ending in February, according to a study by real estate analytics firm CoreLogic.
The firm predicts prices will fall this year before starting to rise again in late 2010. Even so, next February's prices are likely to be 4.2% lower, it forecasts.
Click here to read entire article: Home prices could sink without tax credit...
That's raising concern about a possible double dip in home prices.
National housing prices stopped falling early last year and rose 0.3% over the 12 months ending in February, according to a study by real estate analytics firm CoreLogic.
The firm predicts prices will fall this year before starting to rise again in late 2010. Even so, next February's prices are likely to be 4.2% lower, it forecasts.
Click here to read entire article: Home prices could sink without tax credit...
Short Sale Investing – Are the Banks Focusing More on Short Sales, Instead of Foreclosure?
Over the past 12-24 months, in specific sections of the country the banks have been completely bombarded with foreclosures, and now they have got no choice but to lower their prices so, the people who buy REO’s and know short sale investing, can make a great deal when buying a residence directly from the banks. Many of the banks are now concentrating on Short Sales, rather than foreclosure.
Certainly it depends on which section of America you reside in. Believe it or not, there are several areas of the country where home prices have not dropped that much, while other parts of the nation, like California, Nevada, Arizona and Florida, prices have collapsed. In the regions of the county where home values have fallen drastically, you are in position to produce a great deal when buying from the banks. In the parts of the country where prices have fallen just a little, you may be unable to make as good a deal, but you should still be able to obtain a home for around 15% or more below current market value.
Click here to read entire article: Short Sale Investing – Are the Banks Focusing More on Short Sales, Instead of Foreclosure?...
Certainly it depends on which section of America you reside in. Believe it or not, there are several areas of the country where home prices have not dropped that much, while other parts of the nation, like California, Nevada, Arizona and Florida, prices have collapsed. In the regions of the county where home values have fallen drastically, you are in position to produce a great deal when buying from the banks. In the parts of the country where prices have fallen just a little, you may be unable to make as good a deal, but you should still be able to obtain a home for around 15% or more below current market value.
Click here to read entire article: Short Sale Investing – Are the Banks Focusing More on Short Sales, Instead of Foreclosure?...
FHA Loans: The New Subprime
Coming financial reform legislation misses the point if it doesn't address the federal government's growing dominance of the mortgage market because the United States is already being set up for another bubble.
Uncle Sam's best role is to set the parameters for the industry, including sane underwriting requirements for banks and non-bank lenders, along with other rules to prevent abusive lending, while slowly weaning the mortgage market off the programs that have helped feed the boom-and-bust cycle.
But Senator Chris Dodd's "Restoring American Financial Stability" bill does nothing of the sort. In fact, the bill doesn't address the future of Fannie Mae(FNM) and Freddie Mac (FRE), or the explosion of mortgages guaranteed by the Federal Housing Administration (FHA) at all.
Click to read: FHA Loans: The New Subprime...
Uncle Sam's best role is to set the parameters for the industry, including sane underwriting requirements for banks and non-bank lenders, along with other rules to prevent abusive lending, while slowly weaning the mortgage market off the programs that have helped feed the boom-and-bust cycle.
But Senator Chris Dodd's "Restoring American Financial Stability" bill does nothing of the sort. In fact, the bill doesn't address the future of Fannie Mae(FNM) and Freddie Mac (FRE), or the explosion of mortgages guaranteed by the Federal Housing Administration (FHA) at all.
Click to read: FHA Loans: The New Subprime...
Home Prices Stabilizing
Home prices appear to be stabilizing as demand for higher-priced homes picks up and distressed properties, still a large part of the market, are no longer changing hands at the deeply discounted prices of a year ago.
Overall, home prices declined 0.7% in the first quarter of 2010 to an average of $166,100, the lowest first-quarter national median price since 2002, when the average was $158,600 according to a report by the National Association of Realtors. However, there was wide variation by region, with median prices up 9% in the Northeast and down 8% in West.
And the number of metropolitan areas where median prices are rising, instead of falling, grew for the fourth consecutive time. In the latest quarter, prices gained in 91 of the 152 metropolitan areas tracked by the Realtors compared to 67 in the fourth quarter of 2009 and 30 in the third quarter.
Click to read: Home Prices Stabilizing...
Overall, home prices declined 0.7% in the first quarter of 2010 to an average of $166,100, the lowest first-quarter national median price since 2002, when the average was $158,600 according to a report by the National Association of Realtors. However, there was wide variation by region, with median prices up 9% in the Northeast and down 8% in West.
And the number of metropolitan areas where median prices are rising, instead of falling, grew for the fourth consecutive time. In the latest quarter, prices gained in 91 of the 152 metropolitan areas tracked by the Realtors compared to 67 in the fourth quarter of 2009 and 30 in the third quarter.
Click to read: Home Prices Stabilizing...
Single-family Home Permits Up in Utah
Home building is up in Utah to the tune of nearly $400 million.
Permits for single-family homes in the first quarter of 2010 are up 110 percent over the first quarter of 2009, according to a report released by the Bureau of Economic and Business Research (BEBR) at the David Eccles School of Business at the University of Utah.
About 1,500 new home-building permits were issued by the state from January through March this year.
Click here to read: Single-family home permits up in Utah...
Permits for single-family homes in the first quarter of 2010 are up 110 percent over the first quarter of 2009, according to a report released by the Bureau of Economic and Business Research (BEBR) at the David Eccles School of Business at the University of Utah.
About 1,500 new home-building permits were issued by the state from January through March this year.
Click here to read: Single-family home permits up in Utah...
Wasatch Front Home Building Activity Up Dramatically in 1Q
After one of the most dismal home building years on record, residential construction activity along the Wasatch Front is up dramatically so far in 2010.
Builders in Utah's most populous area took out permits for 1,356 single-family homes in the first quarter, more than double the 569 homes in same period of 2009, according to Construction Montor, which tracks building activity throughout the West. Although residential building activity from roughly Ogden to Provo is up, it's still well below levels of the record year of 2006, when builders took out 3,786 permits in the first three months.
A great deal of the increase this year can be attributed to the federal income tax credit of as much as $8,000, which required buyers to go under contract by April 30, said Jason Eldredge, vice president of land acquisition for Fort Worth-based DR Horton in Utah and Idaho.
Click to read: Wasatch Front home building activity up dramatically in 1Q...
Builders in Utah's most populous area took out permits for 1,356 single-family homes in the first quarter, more than double the 569 homes in same period of 2009, according to Construction Montor, which tracks building activity throughout the West. Although residential building activity from roughly Ogden to Provo is up, it's still well below levels of the record year of 2006, when builders took out 3,786 permits in the first three months.
A great deal of the increase this year can be attributed to the federal income tax credit of as much as $8,000, which required buyers to go under contract by April 30, said Jason Eldredge, vice president of land acquisition for Fort Worth-based DR Horton in Utah and Idaho.
Click to read: Wasatch Front home building activity up dramatically in 1Q...
Are Builders' Incentives For Home Buyers Legal?
Question: Builders in my area are offering incentives to buyers who use their respective in-house mortgage companies. But they aren't offering the incentives to all buyers, just those who secure financing through the company-owned lender. I recently read that if the incentives aren't offered to all buyers, regardless of whether they use the builder for a loan, it is a violation of federal law. Is that correct?
Click here to read the answer: Are builders' incentives for home buyers legal?...
Click here to read the answer: Are builders' incentives for home buyers legal?...
Congress Considers Mandate on 5% Minimum Down Payments
Some Republican lawmakers are calling for the Senate’s financial-overhaul bill to include specific mortgage standards that originators would be required to meet when underwriting home loans.
In exchange, they want to dump from the current legislation the “skin in the game” rules that would require banks that package loans into securities to hold a portion on their balance sheet.
Under the amendment, proposed by Sen. Bob Corker (R., Tenn.), Congress would set minimum down payments of 5%. Mortgage originators and investors who buy loans in the secondary market would also have to adhere to other standards including, documentation of a borrower’s income and assets and certain metrics to determine that borrowers were able to repay their loans.
Click here to read: Congress Considers Mandate on 5% Minimum Down Payments...
In exchange, they want to dump from the current legislation the “skin in the game” rules that would require banks that package loans into securities to hold a portion on their balance sheet.
Under the amendment, proposed by Sen. Bob Corker (R., Tenn.), Congress would set minimum down payments of 5%. Mortgage originators and investors who buy loans in the secondary market would also have to adhere to other standards including, documentation of a borrower’s income and assets and certain metrics to determine that borrowers were able to repay their loans.
Click here to read: Congress Considers Mandate on 5% Minimum Down Payments...
Las Vegas and California Cities Show Top Foreclosure Listings
The mortgage crisis is hitting states all over the country. No state is exempt from feeling the pinch financially and all of the housing markets are looking quite bleak. However, the hardest hit areas are in the states of Nevada and California. The worst city for housing markets is Las Vegas where the foreclosures are the highest. On the list of the top 20 cities for foreclosures, 17 of these were in California, Florida, and Nevada. It is estimated by many that over 3 million people will face foreclosure this year alone. Some other states where the numbers are increasing are Oregon, Utah, Illinois, and Arkansas as well.
Click to read: Las Vegas and California Cities Show Top Foreclosure Listings...
Click to read: Las Vegas and California Cities Show Top Foreclosure Listings...
Wednesday, May 12, 2010
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Distressed Properties,
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REO,
Utah Real Estate
House Prices Up 5.1 Percent in April Amid Slower REO Growth
Home prices in April gained 5.1% from last year, while REO levels across the country slowed their climb, according to the real estate data provider Clear Capital.
The firm measures home prices on a rolling three-month period. On that timescale, prices dropped another 5% in April after a 3.9% decrease in March. But the 5.1% gain from last year matched the yearly gain shown in March.
REO took up 29.6% of the market in April, less than a percentage point of growth from 28.9% in March when levels increased from 26.1% in February.
Click here to read entire article: House Prices Up 5.1 Percent in April Amid Slower REO Growth...
The firm measures home prices on a rolling three-month period. On that timescale, prices dropped another 5% in April after a 3.9% decrease in March. But the 5.1% gain from last year matched the yearly gain shown in March.
REO took up 29.6% of the market in April, less than a percentage point of growth from 28.9% in March when levels increased from 26.1% in February.
Click here to read entire article: House Prices Up 5.1 Percent in April Amid Slower REO Growth...
How to Buy a Foreclosure
You want to buy a foreclosure? Remember, there are both great opportunities and great pressures and pitfalls in this market.
First, you have to decide at what stage of foreclosure you want to buy. There are three options: 1. pre-foreclosure; 2. sheriff's auction; 3. repossession, called REO (for real estate owned by the bank).
"The safest and best way to buy is when it's a bank-owned property," said Rick Sharga, a spokesman for RealtyTrac, the online marketer of foreclosure properties.
Click to read: How to buy a foreclosure...
First, you have to decide at what stage of foreclosure you want to buy. There are three options: 1. pre-foreclosure; 2. sheriff's auction; 3. repossession, called REO (for real estate owned by the bank).
"The safest and best way to buy is when it's a bank-owned property," said Rick Sharga, a spokesman for RealtyTrac, the online marketer of foreclosure properties.
Click to read: How to buy a foreclosure...
Tuesday, May 11, 2010
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Labels:
Auctions,
Distressed Properties,
Foreclosure,
Homebuyers,
Mortgage Rates,
Real Estate Investing
Banks Taking Too Long to Approve Distressed Home Sales, Brokers Say
Debbie is one of California's many homeowners who have found they can no longer afford the house of their dreams. Although she stopped paying her mortgage last year, she has found a way to avoid foreclosure: a "short sell" of the house for less than she owes on it.
New federal rules speed up the process of purchasing a short-sale home.
But even though she has found a qualified buyer, she can't get the bank to approve the sale.
lick to read article: Banks Taking Too Long to Approve Distressed Home Sales, Brokers Say...
New federal rules speed up the process of purchasing a short-sale home.
But even though she has found a qualified buyer, she can't get the bank to approve the sale.
lick to read article: Banks Taking Too Long to Approve Distressed Home Sales, Brokers Say...
Short Sales and Foreclosures: What You Don't Know Can Hurt You
As the real estate market nationwide continues to struggle, millions of homeowners find themselves upside down; that is, owing more on their mortgages than their properties are worth. Many millions of these owners could be faced with the need to move from their homes as a result of job changes, health problems, or divorce. So, what is a homeowner supposed to do if they can't sell their property for enough to pay off the underlying loans? Many are considering two much-publicized options: attempting a short sale, or just walking away from the property and letting the bank take it back in foreclosure.
Click to read article: Short sales and foreclosures: What you don't know can hurt you..
Click to read article: Short sales and foreclosures: What you don't know can hurt you..
Is It Safe To Buy Residential Real Estate?
I recently visited a friend in Phoenix who had fallen on hard times. After a divorce and losing his high-income sales job, he needed to sell his home. As you may have read, the temperature of the real estate market in the Valley of the Sun has more in common with Nome than the torrid Sonoran desert.
My friend will likely do a short sale, meaning that he'll have to get rid of his home for around $300,000. He paid about $600,000 at the top of the bubble. The difference between the mortgage value and the closing price will perversely be considered income by the IRS, and he'll have to pay taxes on the shortfall. In that case, he sighs, he'll have to file bankruptcy.
Click here to read: Is It Safe To Buy Residential Real Estate?...
My friend will likely do a short sale, meaning that he'll have to get rid of his home for around $300,000. He paid about $600,000 at the top of the bubble. The difference between the mortgage value and the closing price will perversely be considered income by the IRS, and he'll have to pay taxes on the shortfall. In that case, he sighs, he'll have to file bankruptcy.
Click here to read: Is It Safe To Buy Residential Real Estate?...
Foreclosures: Salt Lake City Hardest Hit in Mortgage Crisis
When it comes to foreclosures, Salt Lake City is the worst of the worst.
The metro area had the largest percentage increase in foreclosure filings the past year among more than 50 communities hardest hit by the nation's foreclosure crisis, a new report shows.
Owners of 5,155 local properties received a foreclosure-related notice in the first quarter, 101 percent higher than the same period in 2009, according to RealtyTrac, a company that tracks foreclosures nationally. In the U.S., foreclosure filings rose only 16 percent. Many of the other metro areas with high levels of distressed properties actually saw their foreclosure rates fall from the super-high levels of last year.
As for the rate of foreclosures-related filings, one in every 77 of all housing units in the Salt Lake area, or 1.3 percent, received a notice in the first three months of the year, RealtyTrac said. That's the 35th-highest rate of filings among all 206 metro areas in the RealtyTrac report, up from No. 62 in the first quarter 2009 and No. 107 in the first quarter 2008.
To read entire article click here: Foreclosures: Salt Lake hardest hit in mortgage crisis...
The metro area had the largest percentage increase in foreclosure filings the past year among more than 50 communities hardest hit by the nation's foreclosure crisis, a new report shows.
Owners of 5,155 local properties received a foreclosure-related notice in the first quarter, 101 percent higher than the same period in 2009, according to RealtyTrac, a company that tracks foreclosures nationally. In the U.S., foreclosure filings rose only 16 percent. Many of the other metro areas with high levels of distressed properties actually saw their foreclosure rates fall from the super-high levels of last year.
As for the rate of foreclosures-related filings, one in every 77 of all housing units in the Salt Lake area, or 1.3 percent, received a notice in the first three months of the year, RealtyTrac said. That's the 35th-highest rate of filings among all 206 metro areas in the RealtyTrac report, up from No. 62 in the first quarter 2009 and No. 107 in the first quarter 2008.
To read entire article click here: Foreclosures: Salt Lake hardest hit in mortgage crisis...
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