Tuesday, June 14, 2011
Friday, June 10, 2011
Steps To Follow When Buying a Home
Buying a home can be stressful. There are so many questions to be answered and decisions to be made, such as where you should live, what can you afford, and how do you find a real estate agent. Eventually, a whole new set of questions start coming, like, what color should you paint the kitchen? Thankfully, there are more tools than ever to help buyers answer these questions right from the get-go. To make your home shopping process, from shopping to moving in, easier and less stressful, follow these tips:
Personal Finances – Make sure you’re financially ready to take on home ownership before you meet with an agent or starting looking at homes. That means cleaning up your credit and saving enough money for a down payment (20 percent is ideal), and extra costs like home insurance, property taxes and closing fees. Boost your credit score with help from an app like BillTracker which helps you manage when your monthly bills are due. A site like Mint.com lets you create a budget with specific savings goals in mind, such as buying a house.
Where to Live - Before you start looking at specific homes, narrow down the neighborhoods you’d like to live in based on your lifestyle. Transit Score can help you understand your commuting options, Walk Score will show you how many amenities, like shops and restaurants, are within close proximity, and Zillow Real Estate Market Reports lets you compare what’s happening with home value trends in different neighborhoods. But, don’t stop there. Continue your research when you are driving around town, by using real estate apps for iPhone, BlackBerry or Android to get a sense for home prices in different areas.
Finding an Agent - Hiring the right agent can be one of the most important decisions you will make during the home buying process. The right agent can save you precious time and money. So, in addition to following a recommendation from a friend or co-worker, check out local agent ratings and reviews. It’s helpful to know the experiences that other people have had working with a particular agent.
What Can You Afford? – When you’re standing in the living room of your dream home it’s easy to get caught up in the emotions of such an important investment. Before that happens, get a financial reality check using an app like the Zillow Mortgage Marketplace iPhone App to help you figure out if you can afford the home and how the mortgage payment would affect your monthly budget. Once you’re ready, you can get personalized loan quotes and then contact a lender to start the pre-approval process right from your phone.
Moving - Nobody likes moving. It’s a never-ending process with so many details to tie up. Thankfully, apps like Moving List, (iPhone, iPad) Moving Checklist (BlackBerry) and Moving Planner (Android) can help you get organized. These apps come with pre-populated to-do lists that you can edit and organize by categories or dates. Some even help you decide what to pack and what to throw away.
Decorating – You’ve bought the house, the boxes are unpacked, and now comes the fun part – decorating your house to reflect your personal style. And do-it-yourself home decorating has never been easier. A site like Decomash allows you to take a photo of your living space with your iPhone and the app will find complementary artwork that matches your room. Sherwin Williams Color Snap enables you to capture real-world colors and match them to one of 1,500 Sherwin Williams paint colors.
Personal Finances – Make sure you’re financially ready to take on home ownership before you meet with an agent or starting looking at homes. That means cleaning up your credit and saving enough money for a down payment (20 percent is ideal), and extra costs like home insurance, property taxes and closing fees. Boost your credit score with help from an app like BillTracker which helps you manage when your monthly bills are due. A site like Mint.com lets you create a budget with specific savings goals in mind, such as buying a house.
Where to Live - Before you start looking at specific homes, narrow down the neighborhoods you’d like to live in based on your lifestyle. Transit Score can help you understand your commuting options, Walk Score will show you how many amenities, like shops and restaurants, are within close proximity, and Zillow Real Estate Market Reports lets you compare what’s happening with home value trends in different neighborhoods. But, don’t stop there. Continue your research when you are driving around town, by using real estate apps for iPhone, BlackBerry or Android to get a sense for home prices in different areas.
Finding an Agent - Hiring the right agent can be one of the most important decisions you will make during the home buying process. The right agent can save you precious time and money. So, in addition to following a recommendation from a friend or co-worker, check out local agent ratings and reviews. It’s helpful to know the experiences that other people have had working with a particular agent.
What Can You Afford? – When you’re standing in the living room of your dream home it’s easy to get caught up in the emotions of such an important investment. Before that happens, get a financial reality check using an app like the Zillow Mortgage Marketplace iPhone App to help you figure out if you can afford the home and how the mortgage payment would affect your monthly budget. Once you’re ready, you can get personalized loan quotes and then contact a lender to start the pre-approval process right from your phone.
Moving - Nobody likes moving. It’s a never-ending process with so many details to tie up. Thankfully, apps like Moving List, (iPhone, iPad) Moving Checklist (BlackBerry) and Moving Planner (Android) can help you get organized. These apps come with pre-populated to-do lists that you can edit and organize by categories or dates. Some even help you decide what to pack and what to throw away.
Decorating – You’ve bought the house, the boxes are unpacked, and now comes the fun part – decorating your house to reflect your personal style. And do-it-yourself home decorating has never been easier. A site like Decomash allows you to take a photo of your living space with your iPhone and the app will find complementary artwork that matches your room. Sherwin Williams Color Snap enables you to capture real-world colors and match them to one of 1,500 Sherwin Williams paint colors.
Interest Rate For This Week
Fixed and adjustable-rate mortgages sank to new lows for the year, continuing a downward spiral for the eighth straight week, Freddie Mac reports in its weekly mortgage market survey.
Here’s a closer look at how rates fared for the week:
▪ 30-year fixed-rate mortgages averaged 4.49 percent this week, down from last week’s 4.55 percent average. A year ago at this time, 30-year rates averaged 4.72 percent.
▪ 15-year fixed-rate mortgage rates averaged 3.68 percent--its lowest level since November 2010. A year ago at this time, the 15-year rate averaged 4.17 percent.
▪ 5-year adjustable-rate mortgages averaged 3.28 percent this week, slipping from last week’s 3.41 percent average. A year ago at this time, the 5-year ARM averaged 3.92 percent.
Here’s a closer look at how rates fared for the week:
▪ 30-year fixed-rate mortgages averaged 4.49 percent this week, down from last week’s 4.55 percent average. A year ago at this time, 30-year rates averaged 4.72 percent.
▪ 15-year fixed-rate mortgage rates averaged 3.68 percent--its lowest level since November 2010. A year ago at this time, the 15-year rate averaged 4.17 percent.
▪ 5-year adjustable-rate mortgages averaged 3.28 percent this week, slipping from last week’s 3.41 percent average. A year ago at this time, the 5-year ARM averaged 3.92 percent.
Thursday, June 09, 2011
Short Sales Tips For Seller
If you're thinking of selling your home, and you expect that the total amount you owe on your mortgage will be greater than the selling price of your home, you may be facing a short sale. A short sale is one where the net proceeds from the sale won't cover your total mortgage obligation and closing costs, and you don't have other sources of money to cover the deficiency. A short sale is different from a foreclosure, which is when your lender takes title of your home through a lengthy legal process and then sells it.
1. Consider loan modification first. If you are thinking of selling your home because of financial difficulties and you anticipate a short sale, first contact your lender to see if it has any programs to help you stay in your home. Your lender may agree to a modification such as: Refinancing your loan at a lower interest rate; providing a different payment plan to help you get caught up; or providing a forbearance period if your situation is temporary. When a loan modification still isn’t enough to relieve your financial problems, a short sale could be your best option if:
Your property is worth less than the total mortgage you owe on it.
You have a financial hardship, such as a job loss or major medical bills.
You have contacted your lender and it is willing to entertain a short sale.
2. Hire a qualified team. The first step to a short sale is to hire a qualified real estate professional and a real estate attorney who specialize in short sales. Interview at least three candidates for each and look for prior short-sale experience. Short sales have proliferated only in the last few years, so it may be hard to find practitioners who have closed a lot of short sales. You want to work with those who demonstrate a thorough working knowledge of the short-sale process and who won't try to take advantage of your situation or pressure you to do something that isn't in your best interest. A qualified real estate professional can:
Provide you with a comparative market analysis (CMA) or broker price opinion (BPO).
Help you set an appropriate listing price for your home, market the home, and get it sold.
Put special language in the MLS that indicates your home is a short sale and that lender approval is needed (all MLSs permit, and some now require, that the short-sale status be disclosed to potential buyers).
Ease the process of working with your lender or lenders.
Negotiate the contract with the buyers.
Help you put together the short-sale package to send to your lender (or lenders, if you have more than one mortgage) for approval. You can’t sell your home without your lender and any other lien holders agreeing to the sale and releasing the lien so that the buyers can get clear title.
3. Begin gathering documentation before any offers come in. Your lender will give you a list of documents it requires to consider a short sale. The short-sale “package” that accompanies any offer typically must include:
A hardship letter detailing your financial situation and why you need the short sale
A copy of the purchase contract and listing agreement
Proof of your income and assets
Copies of your federal income tax returns for the past two years
4. Prepare buyers for a lengthy waiting period. Even if you're well organized and have all the documents in place, be prepared for a long process. Waiting for your lender’s review of the short-sale package can take several weeks to months. Some experts say:
If you have only one mortgage, the review can take about two months.
With a first and second mortgage with the same lender, the review can take about three months.
With two or more mortgages with different lenders, it can take four months or longer.
When the bank does respond, it can approve the short sale, make a counteroffer, or deny the short sale. The last two actions can lengthen the process or put you back at square one. (Your real estate attorney and real estate professional, with your authorization, can work your lender’s loss mitigation department on your behalf to prepare the proper documentation and speed the process along.)
5. Don't expect a short sale to solve your financial problems. Even if your lender does approve the short sale, it may not be the end of all your financial woes. Here are some things to keep in mind:
You may be asked by your lender to sign a promissory note agreeing to pay back the amount of your loan not paid off by the short sale. If your financial hardship is permanent and you can’t pay back the balance, talk with your real estate attorney about your options.
Any amount of your mortgage that is forgiven by your lender is typically considered income, and you may have to pay taxes on that amount. Under a temporary measure passed in 2007, the Mortgage Forgiveness Debt Relief Act and Debt Cancellation Act, homeowners can exclude debt forgiveness on their federal tax returns from income for loans discharged in calendar years 2007 through 2012. Be sure to consult your real estate attorney and your accountant to see whether you qualify.
Having a portion of your debt forgiven may have an adverse effect on your credit score. However, a short sale will impact your credit score less than foreclosure and bankruptcy.
1. Consider loan modification first. If you are thinking of selling your home because of financial difficulties and you anticipate a short sale, first contact your lender to see if it has any programs to help you stay in your home. Your lender may agree to a modification such as: Refinancing your loan at a lower interest rate; providing a different payment plan to help you get caught up; or providing a forbearance period if your situation is temporary. When a loan modification still isn’t enough to relieve your financial problems, a short sale could be your best option if:
Your property is worth less than the total mortgage you owe on it.
You have a financial hardship, such as a job loss or major medical bills.
You have contacted your lender and it is willing to entertain a short sale.
2. Hire a qualified team. The first step to a short sale is to hire a qualified real estate professional and a real estate attorney who specialize in short sales. Interview at least three candidates for each and look for prior short-sale experience. Short sales have proliferated only in the last few years, so it may be hard to find practitioners who have closed a lot of short sales. You want to work with those who demonstrate a thorough working knowledge of the short-sale process and who won't try to take advantage of your situation or pressure you to do something that isn't in your best interest. A qualified real estate professional can:
Provide you with a comparative market analysis (CMA) or broker price opinion (BPO).
Help you set an appropriate listing price for your home, market the home, and get it sold.
Put special language in the MLS that indicates your home is a short sale and that lender approval is needed (all MLSs permit, and some now require, that the short-sale status be disclosed to potential buyers).
Ease the process of working with your lender or lenders.
Negotiate the contract with the buyers.
Help you put together the short-sale package to send to your lender (or lenders, if you have more than one mortgage) for approval. You can’t sell your home without your lender and any other lien holders agreeing to the sale and releasing the lien so that the buyers can get clear title.
3. Begin gathering documentation before any offers come in. Your lender will give you a list of documents it requires to consider a short sale. The short-sale “package” that accompanies any offer typically must include:
A hardship letter detailing your financial situation and why you need the short sale
A copy of the purchase contract and listing agreement
Proof of your income and assets
Copies of your federal income tax returns for the past two years
4. Prepare buyers for a lengthy waiting period. Even if you're well organized and have all the documents in place, be prepared for a long process. Waiting for your lender’s review of the short-sale package can take several weeks to months. Some experts say:
If you have only one mortgage, the review can take about two months.
With a first and second mortgage with the same lender, the review can take about three months.
With two or more mortgages with different lenders, it can take four months or longer.
When the bank does respond, it can approve the short sale, make a counteroffer, or deny the short sale. The last two actions can lengthen the process or put you back at square one. (Your real estate attorney and real estate professional, with your authorization, can work your lender’s loss mitigation department on your behalf to prepare the proper documentation and speed the process along.)
5. Don't expect a short sale to solve your financial problems. Even if your lender does approve the short sale, it may not be the end of all your financial woes. Here are some things to keep in mind:
You may be asked by your lender to sign a promissory note agreeing to pay back the amount of your loan not paid off by the short sale. If your financial hardship is permanent and you can’t pay back the balance, talk with your real estate attorney about your options.
Any amount of your mortgage that is forgiven by your lender is typically considered income, and you may have to pay taxes on that amount. Under a temporary measure passed in 2007, the Mortgage Forgiveness Debt Relief Act and Debt Cancellation Act, homeowners can exclude debt forgiveness on their federal tax returns from income for loans discharged in calendar years 2007 through 2012. Be sure to consult your real estate attorney and your accountant to see whether you qualify.
Having a portion of your debt forgiven may have an adverse effect on your credit score. However, a short sale will impact your credit score less than foreclosure and bankruptcy.
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Scammers Are Using For Sale Home Listings as Rentals
Some home owners are getting a surprise when a person shows up on their doorstep, with a lease agreement in hand, saying that he or she is renting out their home, which isn’t for rent but for sale.
Law enforcement and real estate professionals are finding a growing scam involving for-sale listings being promoted as rentals--without home owners’ consent.
Scammers are taking listing information of homes for-sale--including photos--and then reposting that information on rental sites and tweaking it to pass the home off as a rental. The scammers then use a fake lease agreement and collect rent from unsuspecting consumers.
And when the scammers don’t present keys for the property, they give the unsuspecting renter permission to call a locksmith to gain access to the home.
Les Sulgrove, president of the Des Moines Area Association of REALTORS®, recently issued a warning to association members about the scam. He suggested real estate professionals set up Google alerts for the home addresses they’re listing so they’ll learn if their clients’ information is being misused on another site.
“All it takes is cutting, pasting, and changing some key pieces of data,” Geoff Greenwood, spokesperson for the Iowa Attorney General’s office, told the Des Moines Register. “People find out the hard way what they paid for wasn’t for sale or for rent.”
Source: “Growing Online Scam Uses Legitimate for-sale Home Listings to Trick Renters,” Des Moines Register (June 5, 2011)
Law enforcement and real estate professionals are finding a growing scam involving for-sale listings being promoted as rentals--without home owners’ consent.
Scammers are taking listing information of homes for-sale--including photos--and then reposting that information on rental sites and tweaking it to pass the home off as a rental. The scammers then use a fake lease agreement and collect rent from unsuspecting consumers.
And when the scammers don’t present keys for the property, they give the unsuspecting renter permission to call a locksmith to gain access to the home.
Les Sulgrove, president of the Des Moines Area Association of REALTORS®, recently issued a warning to association members about the scam. He suggested real estate professionals set up Google alerts for the home addresses they’re listing so they’ll learn if their clients’ information is being misused on another site.
“All it takes is cutting, pasting, and changing some key pieces of data,” Geoff Greenwood, spokesperson for the Iowa Attorney General’s office, told the Des Moines Register. “People find out the hard way what they paid for wasn’t for sale or for rent.”
Source: “Growing Online Scam Uses Legitimate for-sale Home Listings to Trick Renters,” Des Moines Register (June 5, 2011)
Monday, June 06, 2011
El Gobierno Esta Presentando Una Ayuda Para Los Propietarios de Casa En Problemas
Noticias de última hora: Nuevo Programa de Obama rescata a los propietarios bajo el agua
05 de junio 2011 · Deja tu comentario Su fácil de leer esta historia y ser escéptico ... después de todo, 2012 es un año electoral. Muchos verán este programa propone como nada más que una buena compra de edad votación de moda .... Sin embargo usted lo ve, principales deducciones saldo de la hipoteca están de vuelta en el juego. .. Eso es correcto, el programa de patrimonio neto negativo está de vuelta sobre la mesa.
¿Hay alguna forma en que algo como esto va a suceder dado el republicano (y Tea Parties) intentó pasar a un enfoque más conservador para el gasto? Recuerde que la gente, este es SU dinero del pagador de impuestos el dinero ... ... que se va a reducir los saldos de capital de la hipoteca.
Comparte tus pensamientos .. es hora de rescatar a los propietarios de viviendas?
La administración Obama quiere ayudar a más estadounidenses que luchan permanecer en sus hogares mediante la reducción de la cantidad que debe en sus hipotecas en problemas, un alto funcionario del Tesoro dijo el sábado.
"Estamos definitivamente tratando de facilitar la reducción de más capital," dijo Timothy Massad, en calidad de secretario adjunto del Tesoro para la estabilidad financiera. "Es una pieza muy importante de la solución global", dijo.
El gobierno está intentando a través de programas financiados por los contribuyentes para evitar que los propietarios pierdan sus casas. Casi $ 50 mil millones han sido retiradas del rescate de los bancos 700 mil millones dólares conocido como Programa de Alivio de Activos en Problemas, o TARP, para ayudar a propietarios en dificultades.
La persistencia de alto desempleo y un débil mercado de la vivienda suponen una amenaza para las perspectivas del presidente Obama reelección el próximo año.
Hasta ahora, uno de los programas ha ayudado a unos 670.000 propietarios en dificultades ganar más bajos pagos de la hipoteca. Pero eso ha hecho muy poco para ayudar al mercado de la vivienda en general, que se mantiene deprimida como en otras partes de la economía han comenzado a recuperarse.
Un exceso de casas en venta, las ejecuciones hipotecarias, la escasez de crédito y la demanda poco han impedido la recuperación de la vivienda. Los datos recientes muestran que los precios cayeron por debajo de la casa baja visto en abril de 2009 durante la crisis financiera.
"Este ha sido un mercado de la vivienda muy, muy difícil como consecuencia del hecho de que pasamos por una crisis financiera terrible", dijo Massad periodistas en el marco de un evento de prevención de ejecuciones hipotecarias en Washington.
Uno de los programas de la administración ayuda a propietarios en dificultades evitar la ejecución hipotecaria, proporcionando modificaciones permanentes préstamo.
Otro programa, el aumento gradual de ahora, da a los estados que han sido los más afectados por la caída de precios de las casas de financiación para ayudar a reducir el principal del préstamo de un prestatario, entre otras cosas.
"Creo que los va a hacer una gran diferencia en cuanto a los problemas de los propietarios de viviendas desocupados y la caída de precios de la vivienda", dijo Massad. Sin embargo, agregó que el proceso fue complicado.
05 de junio 2011 · Deja tu comentario Su fácil de leer esta historia y ser escéptico ... después de todo, 2012 es un año electoral. Muchos verán este programa propone como nada más que una buena compra de edad votación de moda .... Sin embargo usted lo ve, principales deducciones saldo de la hipoteca están de vuelta en el juego. .. Eso es correcto, el programa de patrimonio neto negativo está de vuelta sobre la mesa.
¿Hay alguna forma en que algo como esto va a suceder dado el republicano (y Tea Parties) intentó pasar a un enfoque más conservador para el gasto? Recuerde que la gente, este es SU dinero del pagador de impuestos el dinero ... ... que se va a reducir los saldos de capital de la hipoteca.
Comparte tus pensamientos .. es hora de rescatar a los propietarios de viviendas?
La administración Obama quiere ayudar a más estadounidenses que luchan permanecer en sus hogares mediante la reducción de la cantidad que debe en sus hipotecas en problemas, un alto funcionario del Tesoro dijo el sábado.
"Estamos definitivamente tratando de facilitar la reducción de más capital," dijo Timothy Massad, en calidad de secretario adjunto del Tesoro para la estabilidad financiera. "Es una pieza muy importante de la solución global", dijo.
El gobierno está intentando a través de programas financiados por los contribuyentes para evitar que los propietarios pierdan sus casas. Casi $ 50 mil millones han sido retiradas del rescate de los bancos 700 mil millones dólares conocido como Programa de Alivio de Activos en Problemas, o TARP, para ayudar a propietarios en dificultades.
La persistencia de alto desempleo y un débil mercado de la vivienda suponen una amenaza para las perspectivas del presidente Obama reelección el próximo año.
Hasta ahora, uno de los programas ha ayudado a unos 670.000 propietarios en dificultades ganar más bajos pagos de la hipoteca. Pero eso ha hecho muy poco para ayudar al mercado de la vivienda en general, que se mantiene deprimida como en otras partes de la economía han comenzado a recuperarse.
Un exceso de casas en venta, las ejecuciones hipotecarias, la escasez de crédito y la demanda poco han impedido la recuperación de la vivienda. Los datos recientes muestran que los precios cayeron por debajo de la casa baja visto en abril de 2009 durante la crisis financiera.
"Este ha sido un mercado de la vivienda muy, muy difícil como consecuencia del hecho de que pasamos por una crisis financiera terrible", dijo Massad periodistas en el marco de un evento de prevención de ejecuciones hipotecarias en Washington.
Uno de los programas de la administración ayuda a propietarios en dificultades evitar la ejecución hipotecaria, proporcionando modificaciones permanentes préstamo.
Otro programa, el aumento gradual de ahora, da a los estados que han sido los más afectados por la caída de precios de las casas de financiación para ayudar a reducir el principal del préstamo de un prestatario, entre otras cosas.
"Creo que los va a hacer una gran diferencia en cuanto a los problemas de los propietarios de viviendas desocupados y la caída de precios de la vivienda", dijo Massad. Sin embargo, agregó que el proceso fue complicado.
Saturday, June 04, 2011
Monday, May 30, 2011
Some Wise Quotes
You are brave...when you overcome your fear and help others to do the same.
You are happy...when you see a flower and are thankful for the blessing.
You are loving...when your own pain does not blind you to the pain of others.
You are wise...when you know the limits of your wisdom.
You are true...when you admit there are times you fool yourself.
You are alive...when tomorrow’s hope means more to you than yesterday’s mistake.
You are growing...when you know what you are but not what you will become.
You are free...when you are in control of yourself and do not wish to control others.
You are honorable...when you find your honor is to honor others.
You are generous...when you can take as sweetly as you can give.
You are humble...when you do not know how humble you are.
You are merciful...when you forgive in others the faults you condemn in yourself.
You are beautiful...when you don’t need a mirror to tell you.
You are rich...when you never need more than what you have.
You are you...when you are at peace with who you are and are not.
You are happy...when you see a flower and are thankful for the blessing.
You are loving...when your own pain does not blind you to the pain of others.
You are wise...when you know the limits of your wisdom.
You are true...when you admit there are times you fool yourself.
You are alive...when tomorrow’s hope means more to you than yesterday’s mistake.
You are growing...when you know what you are but not what you will become.
You are free...when you are in control of yourself and do not wish to control others.
You are honorable...when you find your honor is to honor others.
You are generous...when you can take as sweetly as you can give.
You are humble...when you do not know how humble you are.
You are merciful...when you forgive in others the faults you condemn in yourself.
You are beautiful...when you don’t need a mirror to tell you.
You are rich...when you never need more than what you have.
You are you...when you are at peace with who you are and are not.
Friday, May 27, 2011
Investors Will Dominate The Real Estate Market In the Next Two Years
Investors are expected to outnumber traditional home buyers three to one in the next two years, according to a national survey by Move Inc.
These investors also are ready to compete with traditional first-time home buyers to snag the best deals. About two-thirds of investors say they expect the problems that first-time buyers are having with financing and getting mortgages will work in their favor in competing for properties. One in five investors say they plan to purchase properties using cash-only and 80.5 percent expect cash discounts on properties from sellers.
Some additional findings from the Move Investor survey about this growing segment of home buyers are:
--43.5 percent of investors expect it to get more difficult to find housing bargains in the coming months. Twenty-two percent expect prices to rise in the next six to 12 months, while 53 percent expect prices to stay relatively flat.
--Half of the real estate investors surveyed say they plan to hold their properties for five years or more. Only 11 percent expect to sell within 12 months of buying it.
--Nearly half of the investors surveyed expect a profit of 20 percent or more from their investment, 40 percent expect a profit of 10 percent, and 6.5 percent expect a 5 percent or less return on investment.
--Nearly half of investors say they plan to live in their investment property until it's sold or turned into a rental property.
--About 56 percent of investors plan to turn their investments into rental properties. Also, the survey found that 28 percent plan to purchase a vacation property and 30 percent reported an interest in buying retirement property as an investment.
--Nearly 60 percent of investors say they're new to real estate investing. About 33 percent are considering their first investment purchase and 8.5 percent are in the process of buying and selling their first investment property. Of those surveyed, only 36.5 percent had experience in more than one property transaction.
"This data suggests today's climate is hot for investing and is attracting a lot of new people that don't fit the stereotypical deal-driven flippers that buy and sell properties quickly," says Steve Berkowitz, Move Inc. chief executive officer. "They're mostly entrepreneurial individuals that will make vital contributions to local communities by investing their own money and sweat equity to improve and maintain properties. These personal sacrifices made over the long run will help improve housing stocks, home values, property tax bases, and thousands of local communities."
Source: “New Survey Shows Local Real Estate Markets Heat Up With Investors,” Move.com (May 26, 2011)
Thursday, May 26, 2011
Is the Fha Down payment Going To Increase To 5 % ?
Republicans on the House Financial Services Committee have drafted legislation that would raise the minimum down payment for FHA mortgages to 5 percent, cut FHA loan limits in most markets, and move the Agriculture Department's rural housing program to FHA's parent agency, HUD.
Though the draft bill has not been introduced, titled or assigned a number, it is expected to be the main subject of a hearing Wednesday before the Subcommittee on Insurance, Housing and Community Opportunity, chaired by Rep. Judy Biggert, R-Ill. After that, the bill is likely to be formally introduced and sped through subcommittee and committee votes and head for action by the full House.
The text of the draft bill appears to be a partial answer from House Republicans to the Obama administration's call earlier this year for a smaller federal government footprint in housing.
By lowering maximum FHA loan limits in large numbers of local areas -- well below even the limits that are already scheduled to kick in Oct. 1 -- the bill would squeeze down FHA loan volume across the country, cutting a resource for some home purchasers who can't obtain a conventional mortgage.
Here are some examples of current FHA loan ceilings, how they're scheduled to adjust in October, and where they'd end up under the Republican plan:
•In Los Angeles County, the present high-cost area maximum is $729,750, which was set by the federal economic stimulus legislation passed by Congress following the financial crisis of 2008. That ceiling is scheduled to drop to $625,500 Oct. 1. Under the new bill, however, the maximum FHA-insured loan amount allowed in Los Angeles would be $412,500 -- a $317,250 plunge from the current limit and $213,000 below the scheduled reduction this fall.
•Other counties in high-cost California would experience even sharper declines, such as Monterey, where the maximum would decline by $436,000 and Contra Costa, where the drop would be $379,750. Every county in California -- from big urban communities to rural areas -- would be on the losing end of the new FHA equation, and most reductions would be in the six figures.
•The lower limits would be significant in other states as well. Monroe County, Fla., would see maximum FHA loan limits go from $729,750 to $425,000. Under the scheduled Oct. 1 statutory decrease, the county -- which comprises the Florida Keys -- would have a $529,000 maximum. Sarasota, Fla., would see a $261,250 drop under the bill, Miami-Dade a decrease of $161,250, and Orange County (Orlando) limits would decline by $128,750.
•Large counties in the high-cost areas around Washington D.C. would see FHA limits drop by anywhere from $398,500 (Prince George's, Md.) to $366,250 in Baltimore. Most New England and mid-Atlantic states would end up with lower loan ceilings along with major markets in the Midwest and the Rocky Mountain states.
The FHA loan limit formula would be revised to 125 percent of the median home sale price in the local county under the bill, and the current $271,050 floor for loan limits nationwide would disappear.
Though major housing, real estate and lending groups had no comments pending the Wednesday hearing, they are likely to oppose the sharp cuts in loan limits.
Mortgage industry consultant Brian Chappelle, head of Potomac Partners in Washington, D.C., is scheduled to testify at the hearing and told Inman News that the higher loan ceilings are a bad idea.
Audits of FHA loan performance, Chappelle said, repeatedly have shown that higher-balance mortgages default and trigger claims against FHA's insurance funds at lower rates than smaller-balance loans.
"FHA is essentially an insurance company," he said, "and you need those (higher-balance) loans to spread the risk," just as private sector insurers do.
The Republican bill's call for a 5 percent minimum down payment on FHA loans also is likely to draw criticism from industry groups.
The National Association of REALTORS® and the National Association of Home Builders have opposed such a move in the past, arguing that there is no statistical evidence that adding 1.5 percent onto the current 3.5 percent minimum would significantly affect default probabilities of new FHA loans.
However, the higher down payments, along with the bill's prohibition of financing of closing costs, would make home purchases more difficult for substantial numbers of consumers.
Chappelle estimates that "40 percent of FHA borrowers would fall out" -- unable to afford the transaction -- "if they go to 5 percent down."
The bill also proposes shifting the Agriculture Department's rural housing program to the U.S. Department of Housing and Urban Development. A Republican staff member said "HUD has the housing responsibility and the expertise," so the change is logical.
However, proponents of the rural housing programs may not want to risk being swallowed up in an urban-oriented agency, nor is the Agriculture Department likely to want to lose a chunk of its traditional turf.
Where's the bill headed? Republicans say they are merely seeking to move the agenda they share with the Obama administration -- the smaller footprint concept -- which is, in turn, part of a larger agenda to phase out Fannie Mae and Freddie Mac.
Passage of the bill by the full House appears to be a real possibility, as Republicans are in control on that side of Capitol Hill.
But all bets are off in the Senate, where Democratic support for continuing FHA's role in the market is far stronger, and where dramatic cuts in loan limits in places like California, New York, Massachusetts and the East Coast's expensive markets likely won't fly.
Ken Harney writes an award-winning, nationally syndicated column, "The Nation's Housing," and is the author of two books on real estate and mortgage finance.
Though the draft bill has not been introduced, titled or assigned a number, it is expected to be the main subject of a hearing Wednesday before the Subcommittee on Insurance, Housing and Community Opportunity, chaired by Rep. Judy Biggert, R-Ill. After that, the bill is likely to be formally introduced and sped through subcommittee and committee votes and head for action by the full House.
The text of the draft bill appears to be a partial answer from House Republicans to the Obama administration's call earlier this year for a smaller federal government footprint in housing.
By lowering maximum FHA loan limits in large numbers of local areas -- well below even the limits that are already scheduled to kick in Oct. 1 -- the bill would squeeze down FHA loan volume across the country, cutting a resource for some home purchasers who can't obtain a conventional mortgage.
Here are some examples of current FHA loan ceilings, how they're scheduled to adjust in October, and where they'd end up under the Republican plan:
•In Los Angeles County, the present high-cost area maximum is $729,750, which was set by the federal economic stimulus legislation passed by Congress following the financial crisis of 2008. That ceiling is scheduled to drop to $625,500 Oct. 1. Under the new bill, however, the maximum FHA-insured loan amount allowed in Los Angeles would be $412,500 -- a $317,250 plunge from the current limit and $213,000 below the scheduled reduction this fall.
•Other counties in high-cost California would experience even sharper declines, such as Monterey, where the maximum would decline by $436,000 and Contra Costa, where the drop would be $379,750. Every county in California -- from big urban communities to rural areas -- would be on the losing end of the new FHA equation, and most reductions would be in the six figures.
•The lower limits would be significant in other states as well. Monroe County, Fla., would see maximum FHA loan limits go from $729,750 to $425,000. Under the scheduled Oct. 1 statutory decrease, the county -- which comprises the Florida Keys -- would have a $529,000 maximum. Sarasota, Fla., would see a $261,250 drop under the bill, Miami-Dade a decrease of $161,250, and Orange County (Orlando) limits would decline by $128,750.
•Large counties in the high-cost areas around Washington D.C. would see FHA limits drop by anywhere from $398,500 (Prince George's, Md.) to $366,250 in Baltimore. Most New England and mid-Atlantic states would end up with lower loan ceilings along with major markets in the Midwest and the Rocky Mountain states.
The FHA loan limit formula would be revised to 125 percent of the median home sale price in the local county under the bill, and the current $271,050 floor for loan limits nationwide would disappear.
Though major housing, real estate and lending groups had no comments pending the Wednesday hearing, they are likely to oppose the sharp cuts in loan limits.
Mortgage industry consultant Brian Chappelle, head of Potomac Partners in Washington, D.C., is scheduled to testify at the hearing and told Inman News that the higher loan ceilings are a bad idea.
Audits of FHA loan performance, Chappelle said, repeatedly have shown that higher-balance mortgages default and trigger claims against FHA's insurance funds at lower rates than smaller-balance loans.
"FHA is essentially an insurance company," he said, "and you need those (higher-balance) loans to spread the risk," just as private sector insurers do.
The Republican bill's call for a 5 percent minimum down payment on FHA loans also is likely to draw criticism from industry groups.
The National Association of REALTORS® and the National Association of Home Builders have opposed such a move in the past, arguing that there is no statistical evidence that adding 1.5 percent onto the current 3.5 percent minimum would significantly affect default probabilities of new FHA loans.
However, the higher down payments, along with the bill's prohibition of financing of closing costs, would make home purchases more difficult for substantial numbers of consumers.
Chappelle estimates that "40 percent of FHA borrowers would fall out" -- unable to afford the transaction -- "if they go to 5 percent down."
The bill also proposes shifting the Agriculture Department's rural housing program to the U.S. Department of Housing and Urban Development. A Republican staff member said "HUD has the housing responsibility and the expertise," so the change is logical.
However, proponents of the rural housing programs may not want to risk being swallowed up in an urban-oriented agency, nor is the Agriculture Department likely to want to lose a chunk of its traditional turf.
Where's the bill headed? Republicans say they are merely seeking to move the agenda they share with the Obama administration -- the smaller footprint concept -- which is, in turn, part of a larger agenda to phase out Fannie Mae and Freddie Mac.
Passage of the bill by the full House appears to be a real possibility, as Republicans are in control on that side of Capitol Hill.
But all bets are off in the Senate, where Democratic support for continuing FHA's role in the market is far stronger, and where dramatic cuts in loan limits in places like California, New York, Massachusetts and the East Coast's expensive markets likely won't fly.
Ken Harney writes an award-winning, nationally syndicated column, "The Nation's Housing," and is the author of two books on real estate and mortgage finance.
Alberto Pacheco
Realtor Calbre Lic 01200694
818 481 9211
Keller Williams Porter Ranch
Real Estate Consultant
http://www.granadahills.kwrealty.com Real Estate News, Mortgages, Trends
Tuesday, May 24, 2011
How do I know when is the best time to invest?
Very often I hear potential homebuyers ask the following questions:
• Is this the best time to buy a home or should I wait?
• I hear home prices are still declining and rates are going to be even lower, should I wait?
• What if I buy a home and prices go down, am I going to lose my home?
When we decide to invest, the first thing that we must accept is the fact that no one really knows when the absolute bottom of the market will be, or exactly when the market trends will change, until after it happens; still not sure? Let’s analyze what happened a few years ago:
1. The largest investment bankers of the country lost hundreds of billions of dollars funding risky loans based on the belief that homes would continue to appreciate in value and they didn’t
2. When the financial crisis started, most “experts” predicted that this was going to be the smallest Real Estate bubble in history and that prices would start appreciating soon, we all know what really happened.
Some of us like to wait until we hear in the News that it is a good time to invest, however we seem to forget that Newscasts only report things that have already happened, they never predict, they only report; still in doubt? Then ask yourself, do you remember hearing any news channel reporting about the financial crisis before it happened? Of course not, we only heard of it until after it was already happening.
A second important aspect about investing is to always remember the golden rule:”buy when prices are low and sell when prices are high”, unfortunately most of us will wait to purchase until we see prices are on the way up instead of when they are down.
Now that we know the basics, let’s review the other costs associated with owning a home, to make sure that we are being responsible; you will pay hazard insurance, property taxes, mortgage insurance (if you are investing less than 20% down payment) and last but not least, the interest that you pay on your mortgage; if we take in consideration the interest, the average homeowner will have paid 3 times the price of their home after the 30 years term, financial costs (interest) is therefore the highest cost of homeownership.
In conclusion, we can safely say that a good time to invest would be the combination of low home values and low interest rates, if we acknowledge that rates are at the lowest they have been in the last 50 years and home values are 40% of the peak of the market, would you agree that we are experiencing one of the best times to invest in a home?
Ruben Romero
Camino Real Mortgage Bankers
• Is this the best time to buy a home or should I wait?
• I hear home prices are still declining and rates are going to be even lower, should I wait?
• What if I buy a home and prices go down, am I going to lose my home?
When we decide to invest, the first thing that we must accept is the fact that no one really knows when the absolute bottom of the market will be, or exactly when the market trends will change, until after it happens; still not sure? Let’s analyze what happened a few years ago:
1. The largest investment bankers of the country lost hundreds of billions of dollars funding risky loans based on the belief that homes would continue to appreciate in value and they didn’t
2. When the financial crisis started, most “experts” predicted that this was going to be the smallest Real Estate bubble in history and that prices would start appreciating soon, we all know what really happened.
Some of us like to wait until we hear in the News that it is a good time to invest, however we seem to forget that Newscasts only report things that have already happened, they never predict, they only report; still in doubt? Then ask yourself, do you remember hearing any news channel reporting about the financial crisis before it happened? Of course not, we only heard of it until after it was already happening.
A second important aspect about investing is to always remember the golden rule:”buy when prices are low and sell when prices are high”, unfortunately most of us will wait to purchase until we see prices are on the way up instead of when they are down.
Now that we know the basics, let’s review the other costs associated with owning a home, to make sure that we are being responsible; you will pay hazard insurance, property taxes, mortgage insurance (if you are investing less than 20% down payment) and last but not least, the interest that you pay on your mortgage; if we take in consideration the interest, the average homeowner will have paid 3 times the price of their home after the 30 years term, financial costs (interest) is therefore the highest cost of homeownership.
In conclusion, we can safely say that a good time to invest would be the combination of low home values and low interest rates, if we acknowledge that rates are at the lowest they have been in the last 50 years and home values are 40% of the peak of the market, would you agree that we are experiencing one of the best times to invest in a home?
Ruben Romero
Camino Real Mortgage Bankers
Quote of The Day
All men are by nature equal, made all of the same earth by one Workman; and however we deceive
ourselves, as dear unto God is the poor peasant as the mighty prince.
Plato
FREE HOME SEARCH ALL OVER LOS ANGELES COUNTY
Sunday, May 22, 2011
Quote of The Day
It doesn't matter where you are coming from. All that matters is where you are going.
Brian Tracy
Saturday, May 21, 2011
Quote of The Day
Feeling sorry for yourself, and your present condition, is not only a waste of energy
but the worst habit you couldpossibly have.
but the worst habit you couldpossibly have.
Dale Carnegie
Tuesday, May 17, 2011
New Homes Competing Against Foreclosures
Builders broke ground on fewer homes in April as the new-home sector continues to face competition from a glut of foreclosures that in many markets has brought home values down.
Construction on homes and apartments dropped 10.6 percent to a seasonally adjusted annual rate of 523,000 units, the Commerce Department reported on Tuesday. In March, housing starts reached a 585,000-unit pace (an upward revised figure). Residential construction is down 23.9 percent compared to April of last year--its largest drop since October 2009.
Considered the “volatile part” of the new-home market at the moment, construction of multifamily homes (buildings with five or more units) particularly hampered housing starts last month, decreasing 28.3 percent. Single-family home construction--which generally makes up 75 percent of all housing starts--dropped 5.1 percent from a month earlier.
Regionally, the results were mixed. In the South, housing starts dropped 23 percent and 4.8 percent in the Northeast. However, the Midwest posted a 15.7 percent gain in housing starts, as well as the West with 3.7 percent.
Permits for future home construction dropped last month, falling 4 percent to a 551,000-unit pace last month, the Commerce Department reports.
The Distressed Sales Impact
New-home construction is being weighed down by an oversupply of existing homes on the market, particularly foreclosures, experts say. Buyers are increasingly choosing bargain-priced foreclosures and previously owned homes over--in general--pricier new homes.
“Builder confidence has hardly budged over the past six months as persistent concerns regarding competition from distressed property sales, lack of production credit, inaccurate appraisals, and proposals to reduce government support of housing," NAHB Chairman Bob Nielsen said Monday in statement about the National Association of Home Builder/Wells Fargo Housing Market Index, which shows builders’ confidence about the new-home market remains low.
Source: “U.S. Housing Starts, Permits Fall in April,” Reuters News (May 17, 2011
Construction on homes and apartments dropped 10.6 percent to a seasonally adjusted annual rate of 523,000 units, the Commerce Department reported on Tuesday. In March, housing starts reached a 585,000-unit pace (an upward revised figure). Residential construction is down 23.9 percent compared to April of last year--its largest drop since October 2009.
Considered the “volatile part” of the new-home market at the moment, construction of multifamily homes (buildings with five or more units) particularly hampered housing starts last month, decreasing 28.3 percent. Single-family home construction--which generally makes up 75 percent of all housing starts--dropped 5.1 percent from a month earlier.
Regionally, the results were mixed. In the South, housing starts dropped 23 percent and 4.8 percent in the Northeast. However, the Midwest posted a 15.7 percent gain in housing starts, as well as the West with 3.7 percent.
Permits for future home construction dropped last month, falling 4 percent to a 551,000-unit pace last month, the Commerce Department reports.
The Distressed Sales Impact
New-home construction is being weighed down by an oversupply of existing homes on the market, particularly foreclosures, experts say. Buyers are increasingly choosing bargain-priced foreclosures and previously owned homes over--in general--pricier new homes.
“Builder confidence has hardly budged over the past six months as persistent concerns regarding competition from distressed property sales, lack of production credit, inaccurate appraisals, and proposals to reduce government support of housing," NAHB Chairman Bob Nielsen said Monday in statement about the National Association of Home Builder/Wells Fargo Housing Market Index, which shows builders’ confidence about the new-home market remains low.
Source: “U.S. Housing Starts, Permits Fall in April,” Reuters News (May 17, 2011
Thursday, May 12, 2011
Homes and Condos Listing Update 05-12-11
Market Watch
New Listing (919)
Price Change (1037)
Back On Market (405)
Backup Offer (436)
Expired (160)
Pending (588)
Sold (539)
AVAILABLE HOMES FOR SALE IN LOS ANGELES COUNTY
New Listing (919)
Price Change (1037)
Back On Market (405)
Backup Offer (436)
Expired (160)
Pending (588)
Sold (539)
AVAILABLE HOMES FOR SALE IN LOS ANGELES COUNTY
Wednesday, May 11, 2011
Saturday, May 07, 2011
Wednesday, May 04, 2011
Granada Hills, Mission Hills and North Hills Homes Sold on 3rd Quarter of 2010
Granada Hills
Homes Sold: 128 Average Sales Price: $ 405,000 Price Change From 3rd Quater 2009: 5.2%
Condos Sold: 12 Average Sales Price: $ 257,000 Price Change From 3rd Quarter 2009: 11.6%
Mission Hills
Homes Sold: 42 Average Sales Price: $ 321,000 Price Change From 3rd Quarter 2009: 7%
Condos Sold: 3 Average Sales Price: $ 175,000 Price Change From 3rd Quarter 2009: -12.5%
North Hills
Homes Sold: 88 Average Sales Price: $ 375,000 Price Change From 3rd Quarter 2009: 4.5%
Condos Sold: 51 Average Sales Price: $ 185,000 Price Change From 3rd Quarter 2009: 14.6%
FREE Home Search
Homes Sold: 128 Average Sales Price: $ 405,000 Price Change From 3rd Quater 2009: 5.2%
Condos Sold: 12 Average Sales Price: $ 257,000 Price Change From 3rd Quarter 2009: 11.6%
Mission Hills
Homes Sold: 42 Average Sales Price: $ 321,000 Price Change From 3rd Quarter 2009: 7%
Condos Sold: 3 Average Sales Price: $ 175,000 Price Change From 3rd Quarter 2009: -12.5%
North Hills
Homes Sold: 88 Average Sales Price: $ 375,000 Price Change From 3rd Quarter 2009: 4.5%
Condos Sold: 51 Average Sales Price: $ 185,000 Price Change From 3rd Quarter 2009: 14.6%
FREE Home Search
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