According to this video lower end homes are falling faster in value over the middle price range (move up) and luxury brackets. Do you find it interesting that home values are falling faster in the lower end? (Maybe the word isn’t interesting…its maybe…’suspect’?) The belief is that the lower end home sales are subject to first time buyers who can’t scratch up a downpayment and/ or meet today’s overly strict lending requirements. But, I am thinking there is another reason. REO inventory. Specifically, lenders are focused on selling their lower end assets now…because the losses from those sales is SMALLER [...] Click Here To View More
How To Buy A REO, Bank Foreclosure | Investing In Real Estate
Harris Real Estate University Students (and future students) share this video on your blog…on Facebook etc. Great (basic) tips for home buyers who are considering purchasing a REO. (REO= Real Estate Owned) Not discussed in this video is the fact that if the property needs a bunch of work the bank won’t approve the loan. This is especially true if the mortgage is a FHA insured loan. When the home is being appraised the appraiser will note any non FHA compliant items. Those non compliant issues will need to be fixed before the loan is approved. Keep in mind that [...] Click Here To View More
Fannie Mae Home Path Buyer Incentives | Fannie Mae REO’s, Foreclosures
Hats off to this REALTOR (r) and Loan Officer for doing a great job explaining the benefits of the Fannie Mae Home Path program. As an agent you should also know that Home Path listings often pay MORE THAN 3% commission. STOP: Agents, are you finally ready to dominate your real estate market? Become a Lender Approved REO and BPO Agent. Watch the FREE Training Video and download the FREE Book Now!. NOTICE: Free book guaranteed for the first 100 agents only. Check out Fannie Mae’s Home Path site to learn about all of the Fannie Mae foreclosures (REOs) for [...] Click Here To View More
How To Get A Mortgage After Short Sale (or Foreclosure)
The guidelines for new mortgages are changing. Everything we take for granted about home loans (and being a home owner) is being debated now in Washington D.C. Its clear that required mortgage down payments will increase along with other key elements that many of us have taken for granted. For example, there is growing support to eliminate the mortgage interest tax deduction. There are also political rumblings behind getting rid of the ‘As American As Apple Pie’ 30 year mortgage and replacing it with a 15 or 20 year term. (REALTORS(R) remember, support the NAR. They are the only voice [...] Click Here To View More
Short Sale Today..Buy a Home Tomorrow | How-To Get A Loan After A Short Sale or Foreclosure
What are the absolute bare-minimum guidelines to obtain a mortgage? ….and perhaps more interesting…how to obtain a mortgage immediately after a Short Sale..read on… By far the easiest mortgage to obtain is a FHA loan: 1) 3.5 percent down payment, based on the purchase price of the home (e.g., $7,000 on a $200,000 home), or a gift of that same amount; 2) 3 percent to 6 percent of the purchase price, on top of the down payment, for closing costs, or a credit from the seller of the same amount; and 3) 640 FICO credit score — the middle score [...] Click Here To View More
30-Year Fixed Mortgage Rate Rises for Third Consecutive Week
Mortgage rates for 30-year fixed mortgages rose this week, with the current rate borrowers were quoted on Zillow Mortgage Marketplace at 4.72 percent, up from 4.71 percent at this same time last week. The 30-year fixed mortgage rate declined over the weekend, falling to 4.67 percent on Saturday, before climbing to the current rate. Additionally, [...] Click Here To View More
20% Downpayment Mortgages New Normal? | FDIC Votes On QRW Mortgage Rule
Agents, this is perhaps the most important…and most under-reported….real estate story, ever. Think I am being too dramatic? Consider this: The National Association of Realtors created an excellent video explaining the ramifications of the new QRM rule. Watch that video now. Here is the bottom line, 20% down is going to become the new normal. Watch this CNBC video…pay very close attention the ending few seconds when the presenter is talking about the fear that the QRW rule will spread to ALL mortgages. Agents, you must be aware of the changes that are happening now that will dramatically effect our [...] Click Here To View More
20% Down Payment Rule Starts April 2011 | Mortgages For The Few, Renting For the Many
Agents, are you aware of the fact that new lending requirements (Starting NEXT MONTH) will require 20% down payments on mortgages. Yes, you read that correctly…20% down will be the new minimum requirement thanks to the new QRW Lending Rules. Welcome to the new world of QRM: Qualified Residential Mortgage The new QRM requirements exclude FHA mortgages. However, as you will learn in this video the NAR believes that higher downpayment loan requirements will trickle down to FHA loans as well. With non-FHA mortgages putting less than 20% down will require a very nasty interest rate and other added fees. [...] Click Here To View More
Foreclosure Effect On Credit | Foreclosure Black-List You From Ever Owning Again?
Freddie Mac has released a series of (excellent) videos designed to de-bunk the top Foreclosure Myths. Agents, post those videos everywhere….on your blog, on Facebook, Twitter… Myth 1: If my house is foreclosed, I can never buy a house again — the foreclosure will stay on my record forever. Truth 1: Foreclosure can have a devastating effect on your finances and you personally, but you can recover. Use the time after foreclosure to prepare yourself for successful homeownership the second time around by creating a spending and savings plan and rebuilding your credit. Freddie Mac Foreclosure Myths Video #1 Click Here To View More
Bye-Bye 30 Year Mortgages | Home Financing Under Attack
Agents, I bet you didn’t know that other than the US only DENMARK has a 30 year mortgage…and in Denmark 20% down is the norm. In other words, in every other country in the world other that the USA (and Denmark) when someone buys a home they have to put 20% down…and finance the home for usually 15 years. In our country, owning a home has become somewhat of an entitlement. For almost 40 years it was considered an adult rite of passage to buy a home. This is coming to an end. Fellow agents, assume the 30 year mortgage [...] Click Here To View More
Life After Fannie and Freddie | 30 Year Mortgage Coming To An End?
What will our real estate industry be like if Fannie and Freddie were to no longer exist….in other words, borrowers only choice would be to go directly to a bank and qualify using that banks guidelines? Think lenders are tough now? Just you wait! Remember, most mortgages are ‘sold’. The banks don’t keep them. Many believe this is one of the reasons that so many risky mortgages were issued during the housing bubble. The banks didn’t have the risk…the buyer of their mortgages had the risk. Fannie and Freddie acted as insurance on those mortgages. With Fannie and Freddie potentially [...] Click Here To View More
203k FHA Mortgage Rehab Loans | Distressed Property Financing
What is a HUD 203k Mortgage? Its the perfect home loan for anyone who wants to buy a fixer-up home and doesn’t have a lot of upfront cash. With an over-abundance of REOs hitting the market there is a huge opportunity to buy a home at a deep discount. Smart buyers look for the proverbial ‘Diamond in the rough’. The challenge is how to get a home that needs repair financed. Enter, the 203k Mortgage. 203(k) – How It Is Different Most mortgage financing plans provide only permanent financing. That is, the lender will not usually close the loan and [...] Click Here To View More
Where Are All The REOs? | BPO Training Guide Released
Question: Where are all the REO Listings? Answer: They are coming…and coming NOW! The Federal Housing Administration (FHA) released its December Monthly Report which showed that the agencies Real Estate Owned (REO) inventory was at 60,739 at the end of December, up 9.5 percent from 55,488 in November, and up 47.5 percent from December 2009. The report estimates the current value of its REO properties to be $9.1 billion. Combined with the two GSE’s, Freddie Mac and Fannie Mae, the U. S. Government holds roughly 360,000 REO Properties. In its annual financial status report to Congress in November, the FHA [...] Click Here To View More
Strategic Default Movement Growing | 23% Of Nevada Foreclosures Strategic
What is interesting about this article isn’t the fact that so many foreclosures in Nevada are strategic….what is interesting is the fact that the Nevada Association of Realtors is doing the reporting. Most boards of Realtors have been downplaying the number of underwater owners choosing to strategically default for fear that the ‘contagion’ would spread. Fact is, underwater owners are walking away regardless of a Realtors participation let alone consent. For smart agents, the strategic default movement as an opportunity. Understand that underwater distressed owners who are considering a strategic foreclosure would be far better served if they were to [...] Click Here To View More
Taxes Owed After Short Sale or Foreclosure? | IRS Form 982, Mortgage Forgiveness Debt Relief Act
After a short sale or a foreclosure, will there be taxes owed on the ‘forgiven debt’? Agents, when you get that question always tell your defaulting homeowners to seek the advice of an accountant of an attorney. Consult your CPA for more details, but the bottom line is: most homeowners will not owe tax on the forgiven amount. Prior to the Mortgage Forgiveness Debt Relief Act (HR3648), homeowners of primary residences were subject to a “Phantom Tax” on whereby the amount forgiven would count as income. Since the passage of this retroactive law in December 2008, eligible homeowners still report [...] Click Here To View More
Credit Scores After Short Sale or Foreclosure | Distressed Property Designation
How will my credit be damaged after a short sale or foreclosure? Lets ask the reporting agencies: The impact a foreclosure, short sale or bankruptcy have on credit scores can vary depending on the credit profile of a particular person. The amount of the score’s drop is based on the person’s starting score. In general, a foreclosure will reduce a credit score by 140 points, he added; a short sale will drop the score by 130 points. While both a foreclosure and a short sale will remain on a credit report for seven years, they are often reported differently. A [...] Click Here To View More
American Dream Under Attack| Moving From Nation of Owners to Nation of Renters?
Real Estate News Alert Fellow Realtors, in case you didn’t know it…..obtaining a mortgage is about to become significantly more difficult. Here is what Harris Real Estate University expects to happen: * GSE (Fannie and Freddie) Market share to reduce from 95% to 40%. Think about that for a moment. When was the last time you had a buyer who DIDN’T use Fannie or Freddie for their mortgage. * Reduce the GSE Loan Limit. The loan limit is $729,750 in the most expensive areas in the US. Expect the max loan limit to become no greater than $429,750. * Increase [...] Click Here To View More
Is The American Dream of Homeownership Dead? | Huge Increase In Rental Demand
What has happend to the (so-called) American Dream of homeownership? If the statistics in this article are accurate, we are in the midst of a huge social shift away from homeowner-ship. Being an ‘owner’ had been an adult rite of passage. Now, owning a home is something that is purely optional. Lets be honest, renters for a long time have been seen as second class citizens. There has been almost 2 classes of Americans..owners and renters. But, what happens when members of the ‘owner-class’ themselves are forced to become renters because they ‘lost their homes to foreclosure’. What happens when [...] Click Here To View More
New Mortgage Requirements, 20% Downpayments are Just the Start..
Agents…HUGE changes coming to a local mortgage market near you. Everything is in flux…downpayments may increase to 20%, higher credit standards, loans will be more expensive to obtain….you name it. Watch this 2 part ‘discussion’ on what will happen next with mortgage financing: Click Here To View More
National Association of Realtors April Pending Home Sales
National Association of Realtors official explanation of the very disappointing April Pending home sales results… In case you missed it, pending home sales dropped by more than 11%!. Not a great sign of things to come for the rest of 2011. NAR blames..the crappy weather…and the banks ever tightening lending standards. Hard to argue with either explanation. The weather was unseasonably bad and the banks are most definitely tightening their lending standards. WARNING: Short Sales…love em or hate em…they are here to stay! Go beyond the basic ‘expert’ short sale designation. Watch the FREE 2011 Agent Short Sale Secrets video [...] Click Here To View More
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