Have you been hearing about the looming wave of foreclosures coming? Well, it’s slowly coming to the market place. With the economic problems we are facing, it is taking a toll on everybody. We are still not out of our crisis. Some areas in the country are really going through hard times. California is so lucky, we have four cities out of eight, that ranks as the most miserable cities in the United States. Let’s hope that things don’t get any worst!!!
Wow!! It’s almost the end of January and boy did it fly by. Since the beginning of the year, the rates have been going up. In November of 2010, the 30 year fixed loans were at a 40 year low of 4.17% the 15 year rate was 3.57%. Now it’s at 4.8% and the 15 year rate is 4.09%. I don’t think we will ever see the November rates ever again. There will probably be less borrowing, in 2011, due to the economic conditions.
So what do you think prices of homes will do? Well, most of the country will continue to see declines or stablize in prices except for 10 cities. Unfortunately, Florida and parts of the Western parts of the US will see the largest drops in home values.
Home prices dropped 4.1% annually, in 2010. Although there was an increase in prices, overall 70% of the major market prices experienced a decline and 8 had double digit declines. There were 6 markets in California that managed to have some price gain.
Unfortunately, 2011 will probably be the same, unless unemployment and distressed homes decrease. Until there are more jobs and less people loosing their homes, we will not see too many price gains.
HAPPY HOLIDAYS!! Foreclosures are down 21% of the previous month and 14% below November of last year. This is great news but I think we will see another wave of foreclosures and short sales in 2011. It could be as early as January 2011. We probably will see another wave of distressed properties on the market in the coming year.
If you remember in 2008-2009, the market was flooded with the first wave of distress properties for sale. There are still a lot of people having problems with their loan payments and the banks will have to follow through with their right to foreclose to recuperate the losses.
Ever wonder why it takes so long to finish a short sale transaction? It could take 3 to 4 times longer then a regular sale and there is no guarantee that the sale will be completed. This process is really between the buyer and seller, however there is another party, a lender of record, that has to cooperate with the purchase. They have their own proceedures to approve the purchase and could take a long time.
Where do you go after your home is foreclosed upon by the bank? Your credit is a mess and you may not make as much money as before, so where do you go?
The Center for Economic and Policy Research has a report, “The Gains from Right to Rent in 2010″, and has suggested to allow homeowners the right to rent their home, after foreclosure. By doing so, it may address the nation’s foreclosure problem.
HR 5028, under Right to Rent legislation, would allow the foreclosed homeowner to stay in the home as a renter for a substantial period of time. This would help the homeowners from being homeless and it will help the communities that are experiencing high numbers of foreclosures.
Have you had an experience working with a short sale? If you did, you’ll agree that there is no guarantee that the home will be sold to you, no matter how long it takes to get an approval and how frustrating it is to not know if you are going to be able to buy the home. Well, the HAFA program is designed to help with the frustrations homeowners, sellers, buyers, and agents experience when going through the short sale process. This program should help speed up the process and help people but there is no guarantee. Only time will tell.
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.
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.
Are you having problems with your payments? Need some help to keep your payments manageable? Then you might want to contact your lender/bank and let them know that you’re having financial difficulties. They will be able to help you keep your home if you fall into their criteria. This loan modification process can be a long one and can be stressful, however here are some tips that can help you through the process in a timely manner.
