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.
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.
For the third month in a row, mortgage lates, 90 days or more, have declined. This could be another sign of recovery. With fewer defaults, the inventory level of REOs and short sales should go down as well. Could this be the bottom or is it a double dip situation. Only time will provide us with an answer. Either way, now is still a good time to purchase real estate.
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!!!
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.
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.
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.
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.