Jeffrey Tung's Real Estate Blog » foreclosures

Mixed messages

Jeff Tung — Fri, 04 Nov 2011 23:46:39 +0000

In the past few weeks the real estate market showed multiple signs of a rebound of some sort. In 20 metropolitan areas prices rose 0.2% in August but were still down 3.8% year over year. This may all change soon. In September, pending sales were down 4.6%. Could this be another beginning of a triple dip? With Freddie Mac requesting for another $6 billion of your tax money and holding about 60,000 REOs from the market, which will take approx. 15 years to sell off, I don’t think our country’s rebound in a lot of areas will happen anytime soon and hope that the triple dip is not too severe.

Some help is on the way. The Federal Housing Financing Agency is trying to help change the market. They are making a few changes to the Home Affordable Refinancing Program to attract more borrowers and stimulate the mortgage industry and helping more homeowners. The National Association of REALTORS are also concerned with the state of our real estate market and has a 5 point plan that could get us out of this triple dip situation and stabilize the market. With any change, it will take a while for the changes to make a difference. Let’s hope that it won’t be too long.

Foreclosures are up in the third quarter!!

Jeff Tung — Mon, 24 Oct 2011 23:11:37 +0000

There has been more then 610,000 foreclosures last month and represents a 1% increase then the previous quarter. On average it took 336 days to complete the foreclosure process nation wide. New York took 986 days to complete the process while Texas only took 86 days. Wow, Texas seems to be doing something different.

President Obama is expected to help struggling homeowners with their mortgage payments. The Wall Street Journal reports, ”The administration’s plan is expected to eliminate “appraisals and extensive underwriting requirements for most borrowers” who are up-to-date on their mortgage and want to refinance at a lower rate”. This should help those who have been keeping up with their payments and were looking for assistance in avoiding foreclosure.

While most the country is having foreclosure problems, there are areas that are still doing well. These areas are the most expensive areas in the United States. The economy today doesn’t seem to hurt these types of properties. In fact, it seems to have increased the sales activity in this price range.

Senate proposing to make financing harder

Jeff Tung — Sun, 29 May 2011 19:47:21 +0000

The Senate is proposing to change the FHA down payment to 5% and decrese the loan limits. Why make it harder to qualify for a loan when FHA is critical in providing affordable financing to help decrease the growing foreclosed properties. Currently the nation’s largest lending institutions own more then 872,000 homes which is twice that of 2007. It will take 400 days for lenders to foreclose on the home and 176 days to sell it. This will make our recovery even slower. Although financing isn’t the only factor to a recovery, it is one of the most important factor to decrease the ever growing inventory.

Higher Down Payments, Lower Loan Limits Coming to FHA? (jvitto.wordpress.com)
Overcoming the Mortgage Obstacle (tominvestor.wordpress.com)
Republicans, Realtors To Spar Over FHA Loans (blogs.wsj.com)
Mortgages: Financing Foreclosed Homes (nytimes.com)

5 Myths about foreclosures

Jeff Tung — Sat, 20 Nov 2010 03:29:25 +0000

You probably have heard a lot information about foreclosures but don’t know to believe. Well here is some information about foreclosures. This should help you understand what foreclosures are all about.

With interest rates moving up, you should consider purchasing a property soon. There is more pressure for rates to go up then down. We have seen rates at it’s lowest rates historically and may not see them again.

How to Navigate Your Post-Foreclosure Financial Life (walletpop.com)
Everything You Need To Know About Foreclosure (livecrunch.com)
Protester Screams At Foreclosure Hearing [Video] (realestateradiousa.com)
Robo-Signing Foreclosure Mess: Bank of America Vows to Do Better (dailyfinance.com)
Citi May Have to Refile Thousands of Forelcosure Affidavits (dailyfinance.com)

$3 Billion more to help homeowners

Jeff Tung — Fri, 13 Aug 2010 23:36:08 +0000

Our government has said they would spend another $3 billion to help homeowners keep their home if they lost their job or have a medical condition that reduces their ability to work. Eligible homeowners could receive a no-interest loan up to $50,000 for as long as 24 months and stay in the home. This program is to prevent further home foreclosures, but will it help and make a difference? According to RealtyTrac, foreclosures have increased 8% to $1.65 million in the first 6 months of this year with the current programs, so will this help or are we digging a bigger hole in the money pit for the next generation to cover? I hope it does help and get us out of this mess. However, it’s going to take some time to see if the extra money spent will make a difference, but at least, the government is trying to help people keep their homes.

HUD offers interest-free $50K loans to unemployed homeowners to stem foreclosures (hotair.com)
Foreclosures are up and foreclosures are down – learn why (agentgenius.com)
U.S. home foreclosures surge (theglobeandmail.com)
July foreclosures surge 15% in Washington state (seattletimes.nwsource.com)
Foreclosures surge (capitolhillblue.com)
Government to spend $3 billion to help homeowners (marketwatch.com)
Homes lost to foreclosure up 6 pct from last year (sfgate.com)
Homes lost to foreclosure up 6% from last year (usatoday.com)
Billions to fund more programs to help homeowners – helpful? (agentgenius.com)
$3 billion more for jobless homeowners (money.cnn.com)
U.S. Treasury expands homeowner aid for jobless (reuters.com)
HUD Just Announced A Homeowner Bailout (businessinsider.com)
“Obama Administration (Via Taxpayers) To Provide $3 Billion In Housing Aid To Unemployed Homeowners” and related posts (bookerrising.net)

What can you do to avoid forclosure?

Jeff Tung — Mon, 09 Aug 2010 23:02:17 +0000

Having a hard time keeping your payments up? If you’re like millions of people facing the thought of loosing their home, here are some options from Fannie Mae, that may help your situation. A little knowledge goes a long way. You may be surprised to know that there is a way for you to keep your home.

Foreclosures are down

Jeff Tung — Tue, 27 Jul 2010 22:41:57 +0000

According to Realty Trac, “A total of 340,740 California properties received a foreclosure filing in the first half of 2010, the nation’s highest total but down 15 percent from the previous six months and down nearly 13 percent from the first six months of 2009.”

It is encouraging to know that the foreclosures are on a decline, however is the real estate market going to survive the next wave of REOs? I think it will as long as the interest rates stay at today’s levels, unemployment declines, and the demand for housing remains strong.

The San Francisco market is a great example. Although the hardest hit areas in San Francisco, are in the lower and medium priced homes, the home sales have increased and spurred on the sales of the more expensive areas of the city. It is expected to continue for the rest of the 2010.

Foreclosure Avoidance Counseling

Jeff Tung — Tue, 23 Feb 2010 05:29:11 +0000

In efforts to help everybody who needs help, HUD has updated their list of counselors. This will help you find answers to help you with your financial problems. This is a free service and should be your step in trying to get help from your government.

If you need guidance or more information about your options, HUD may have answers for your situation.

Having Trouble With Your Loan Mod? Read This (hsh.com)
Changes to HAMP Attempt to Improve Lender-Borrower Communication (hsh.com)

The Preserving Homes And Communities Act

Jeff Tung — Fri, 09 Oct 2009 00:07:21 +0000

Our government is trying to assist more homeowners that are facing foreclosure with senate bill S1731 . The bill’s intent is to force the lenders to do a loan modification analysis on loans that are in trouble or going to be in trouble, to see if it is possible to lower their payments. By keeping people in their homes and not going into foreclosure, property values should not decline and will help hold the prices up for the area. If more foreclosures hit the market place, it would drag all of the other homes for sale in the area down.