If you are an investor, FHA announced it is extending the temporary waiver of its property anti-flipping rule through the end of 2012.
Checkout the news at http://www.dsnews.com/articles/fha-waives-anti-flipping-rule-through-year-end-to-speed-reo-sales-2012-01-03
Wanting to SELL your house?
Or BUY a new home?
Or REFINANCE your mortgage?
The good news is that low interest rates are making it possible!
Residential Highlights
Condo/Townhome Highlights
Don’t miss the new buyers coming out for this season. Call me today to get your house on the market with: Your Colorado Real Estate Experts – Your Best Choice.
There are lots a beautiful homes waiting for you to pick from at great prices. See today’s rate for conventional 30 yr fixed loans, 20yr, 15yr and FHA rates at historical lows. The link will take you to our website where you can see what it takes to qualify, all the details of the loan quotes, and calculators for what your payment would be or how much you can afford. As both a mortgage loan and real estate broker, I can help you find the home of your dreams and walk you through the process from start to closing table finish, making it an easy smooth process. Call me today and let’s get started!
If you’ve been waiting for the best rates to refinance, don’t wait too long. Rates are at a record low (click here to see) but it is uncertain how long lenders will continue to offer these low rates. Each month that you put off refinancing, you pay out for a higher mortgage payment when you could have more cash for other needs. Most refinancing programs are done with only the cost of your credit report and appraisal as out of pocket costs to you. The rest can be rolled into the loan amount. Of course, not everyone should refinance and that’s probably the first thing you should find out. We have a calculator to help you decide here , (look for Calculators). Or better yet, call me – I’d love to help you lower your monthly mortgage payment.
Need extra cash? Maybe refinancing to a lower mortgage payment would help.
Today’s Rates: Interest Rates: Rate Search (click on Interest Rates drop down: Rate Search.
Example of Savings: $200,000 30yr fixed loan – rate 3.875% (APR 3.945%) **
Resulting Payment: $1104.52 [PI: $940.47 w/Taxes & Insurance: $162.05]
(20% equity – loan to value is assumed – less will result in mortgage insurance premiums added to the payment)
Compared to same loan amount $200,000 at 6.0 ARM (APR 6.121%) with a payment of $1363.15
That’s a $258.63 RAISE!
Why let me help you?
P.S. The best compliment you can give me is the referral of your friends and family!
**Please Read the Following:
The above is an example only for education purposes and is not a solicitation. Rates, points and programs cannot be guaranteed on this web site because
rates, fees, APR, and other costs are subject to individual borrower’s credit
score, loan-to-value, loan purpose, loan amount, and rapid fluctuations in
market conditions. Maximum Loan amount for a conforming loan is $417,000.
Loan amounts in excess of $417,000 are considered Jumbo loans. Rates and
APR’s are based on amounts of $200,000 for Conforming Loans and $500,000 for
Jumbo Loans. This is not an advertisement for credit as defined by paragraph
226.24 of regulation Z.
First Step – Learn some basics:1) Refinancing a mortgage can bring big savings. But, for some homeowners, it may not be the best financial move: Should I Refinance?
2) Do you qualify for a competitive rate? A good credit score is your ticket:Your Credit Report
3) Other considerations:
Next Step: Check Today’s Rate
Last Step: Reply with email or call me and I’ll help you get started.
Sharon L. Mahoney 720-208-6873
Assoc. Real Estate Broker @ Cherry Creek Properties, Inc.
Mortgage Loan Originator LMB #100007762/NMLS #223825 @ RLO Mortgage, LLC
Information, Integrity, Service & Solutions
If you are watching the real estate market, it’s important that you consider the source of your information. The national news media often announces data and housing trends based on averages for sales activity from across the whole nation, often citing the National Association of Realtors (NAR). For the local consumer, this information is basically useless. Even local news media often get it wrong, also quoting national figures from the same AP sources the national news outlets use. What you want is data from your own neighborhood to know what the most accurate and true sales activity has been.
The rule is: the more local, the more accurate and true. Metrolist, here in the Denver Metro area, is the local source for accurate real estate sales data but you must be a member to take a look at your neighborhood information. I can help with that. Before we go there, however, let’s look at April 2011 average Metro area numbers.
These are April 2011 sales numbers compared to last year’s April 2010. The chart tracks the numbers for the year so far. It’s really apparent April’s metro area house sales are off (17.3%) compared to last year and the year’s numbers are down 11.2%. Days on the market have increased from average of 79 days to 109. That means it took an average of 30 more days to sell. The absorption rate is up to 5 months which means good news for qualified buyers (buyer’s market) but bad news for sellers. And finally, what impacts all of us: the average price down .8% to $271,969. Below this residential chart are the figures for the metro area condo sales.
Now let’s look more local by pulling up numbers for the Highlands Ranch/Lone Tree area to see how these figures change when looking closer to home. The first difference is that the sales are only 7.7% off from last April and less than 2% off 2010 YTD sales. Days on the market is 94 and the absorption rate is only 3.6 months, less than last year, and moving into a seller’s market. Finally, and the biggest difference, is the average sale price, $372,865. This is $100,000 more than the metro area average price. This comparison is a perfect example of why sellers and buyers need to consult a real estate agent to receive accurate and true information about the neighborhoods of their interest.
Please let me know how I can be of assistance in helping you get the most up to date and accurate information for your real estate interests. Email me at smahoney6873@gmail.com or call me 720-208-6873.
May’s numbers should be out by next week. Watch for a new post looking at another neighborhood for comparison.
Strategic default, or “walking away” from a home and it’s loan is a decision some people have been making, actively choosing to accept the negative credit impacts and possible stigma of foreclosure rather than continuing to pay a loan significantly greater than their home’s value. How bad will the credit ding be? 100-200 points on credit reports is likely in the short term, if all other accounts are kept current in the years following, credit will rebuild over a period of two to three years. Lender guidelines for the purchase of a new home will vary, it currently will take 3-5 years after a foreclosure before a new home can be purchased. Those guidelines can, and do change, the guidelines are also different between different lenders and investors.
There are many arguments, both pro and con, regarding the ethics and/or morality of choosing not to pay on a contract that was entered into voluntarily, the decision is a personal one and that aspect of strategic default won’t be covered here, just the practical aspects. Loan default caused by financial hardship also won’t be covered, that’s a completely different subject with it’s own solutions.
Home values in different parts of the country vary widely, there’s no practical way to assign dollar values to a loss in property value, we have to use percentages to have some element of conformity. So, “My property is $20,000 underwater” won’t work, but “My property is worth 20% less than the loan amount” will more closely reflect different area property values.
I don’t believe there is any long term financial benefit to a strategic default if property values have dropped less than 20% or so. The costs and effort of moving, the increased costs of credit and the possibility of lender deficiency judgments just don’t make it an attractive option, it’s undoubtedly better to ride out the price decline knowing that property values will rise once again, although it’s going to be at a slower pace than the mid part of this decade.
If the value of your home has dropped significantly more than 20%, leaving you with a loan balance much, much higher than your homes value, you’ll probably find the following information useful.
Most loans have a grace period after the payment due date. If the payment is due on the 1st, that payment usually isn’t considered late until around the 15th. On the 16th, if no payment has been made, the loan could be considered in default and the foreclosure process could begin. Most lenders won’t do that. On the 16th, your lender will send a letter reminding you that you need to make a payment, they’ll also probably call you. Most lenders will not initiate any kind of foreclosure process until 3 payments have been missed, and it could take quite a bit more time than that depending on lender/loan servicer workload. The actual foreclosure process and timeline varies by state law, but in most states there is an initial document recorded and mailed to you declaring the loan in default and giving you the dollar amount and time to cure the default, then after the time to cure has passed a second document will be recorded and mailed to you scheduling a foreclosure auction/public sale. After the foreclosure auction, the lender or a third party bidder will obtain title to the property subject to owner rights of redemption available in some states. Either after the redemption(if available) or the foreclosure auction, the title holder will seek possession of the property(eviction).
If a lender/servicer is right on top of every file, the combined timeframe for default/foreclosure in a short timeframe state is a minimum of 5 months with no payments, the foreclosure process in some states can take up to a year.
A home loan is a contract between a lender and borrower which will normally include a Promissory Note and either a Deed of Trust or a Mortgage. The promissory note is your promise to repay, the deed of trust or mortgage is a security instrument providing the collateral for the loan. Why is this important? Foreclosure on a property by one lender does not wipe out other notes, foreclosure by a senior lender simply removes the junior liens from the property title.
In a situation where a borrower received an 80/15/5 loan, or 80% first loan/15% second loan/5% down payment and the property value has now dropped to 20% below the original purchase price, what’s likely to happen if the borrower stops making payments to both lenders?
The second lender is unlikely to pursue foreclosure because they’d incur the expense of foreclosure, have to reinstate the first loan and keep it current, then incur the costs for property rehab, marketing and costs of resale. That doesn’t make financial sense unless they believe the property value to be much higher. The first lender is the one who is likely to foreclose. With a 20% drop in property value, they are at a break-even point. They’ll incur carry costs, property rehab, marketing and costs of resale, but they will recover most of their loan amount.
After the first’s foreclosure, the second is now an unsecured debt owed by the borrower, similar to a credit card debt. Will they pursue that debt or will it just be written off? That’s a big unknown which will depend on the lender, state laws and whether your financial situation appears strong enough to justify the effort. If your state laws allow the second lender to pursue you, settling the debt for a percentage of the amount owed might be a practical solution.
Deficiency judgments occur when a lender loses money through the non-completion of a contract (loan) and the lender chooses to sue the borrower for the loss. Some states do not allow deficiency judgments for any loss a lender may suffer on a single family primary residence home, other states protect borrowers from deficiencies related to purchase money loans, and some allow lenders to obtain a deficiency judgment for any loss they may suffer related to a home loan. This is a very important facet, and you should seek legal advice from an attorney in your state regarding your exposure.
In a situation where lender(s) have decided not to pursue a deficiency, but instead are just going to write off the debt as uncollectable, the lender should issue a 1099-C which informs the Internal Revenue Service that the lender has written off the debt. From the I.R.S. perspective, debt that has been cancelled is the same as income, meaning income tax is owed on that phantom income. Realizing this isn’t an intended purpose during a significant housing bust, The Mortgage Debt Relief Act of 2007 was passed to eliminate taxation on debt forgiveness related to a primary residence through 2012. IRS Link There are restrictions and limitations, so it pays to read carefully and perhaps also consult with a CPA regarding those liabilities.
Whatever your choice may be, this information is not tax or legal advice, it’s strictly background information about the foreclosure process and it’s ramifications. You are strongly advised to obtain legal and tax advice from qualified professionals in your area before taking actions of any kind.
I’d been considering, pondering, praying about, and gathering info for a move I was eventually 
going to make, then the day came this past week. I met with Dino Sarganis, owner broker of Cherry Creek Properties in Greenwood Village, Colorado. A number of my friends who are agents at CCP have shared with me their experience there and encouraged me to come over. Dino and I visited about the current issues that real estate agents face in this challenging market. We shared our values and vision. I shared my need for a brokerage with the highest of integrity. I don’t like to do business in the “gray” areas. I like the rules and regs keeping them to the letter and “disclose, disclose, disclose,” being completely transparent with my clients, other agents, and my vendors. My byline is ”Information, Integrity, Service, & Solutions” which is my intention as a real estate broker or as a mortgage loan broker. In Dino Sarganis I found a “like mind.” Cherry Creek Properties is a locally owned brokerage with over 500 agents. I like that too. I’ve felt a little like Goldilocks over the past 6 years – first with too big of a company, then too small of one, but of CCP, I can say, “It’s just right!” Where I hang my license is only a part of the big picture. The rest is how I can help you with your real estate needs. Are you looking to buy or sell a home, finance or refinance a house? Or are you struggling with your payments and fearing foreclosure? In any of these cases I can be of help. Just let me know!
A journey some people take only once or twice in their life time. If I were going to take a road trip for the first time to a new destination, you’d probably tell me to get a map for starters. Well, that’s what I’m going to create for you here. At any point along the way you are invited to contact me at smahoney6873@gmail.com with any questions you may have. So what’s your starting point?
1) You’re starting point all depends on your cash on hand. If you have cash to pay for a house, then call me right away because you get to skip step one and go straight to “Start Looking.”
But what if you can’t by a house with cash. Are you a veteran? You may have a VA loan available to you. You will have to check at the Veterans Administration to see if you qualify there, or if a loan you once used has been paid off.
If neither of those fit your case then your first step is to determine how much money you have to put down on a house. Gone are the days of “no down” loans. Lenders are requiring from 3-7% on FHA loans which also require mortgage protection insurance be added to your payment. Some conventional loans will allow less than 20% down but again you will have to pay mortgage insurance until your equity increases to more than 20% of the loan to house value ratio. As of July (09) the front range area is no longer in the declining market category so conventional loans are now accepting 10% in most cases.
So, unfortunately, the first step isn’t out the door to look at houses. Your first step is to find out what you qualify for because unless you have cash to buy a house, you are going to have to be approved for a mortgage. The good news for you is that 30 year fixed rates are great right now and there are a lot of good bargains out there in the housing market in the Denver area. Don’t shy away. Start the journey today!
You are welcome to visit www.cmhloans.com to use a number of calculators that will help you figure out your desired loan amount and what the monthly payments would be, as well as checking the current loan rates available and an estimate closing costs of a loan.
Since most sellers and all lender-owners (of foreclosed properties) require potential buyers to bring a letter stating what purchase price they would be able to offer and qualify for the corresponding loan, your next step is to call me so I can start you through the approval process and get you that letter.
We’ll continue your journey in the next post…
JumpStart mortgage program aims to do just that | INDenverTimes Posted using ShareThis
GREAT NEWS FOR FIRST TIME HOME BUYERS – THERE’S HELP FOR YOU!
Foreclosures fall in Colorado, but another wave may be coming | INDenverTimes Posted using ShareThis
The good and the possibly bad news about Denver’s foreclosures.
Encouraging news on home supply | INDenverTimes (Posted using ShareThis)
Read the latest news on the number of houses on the market in the Denver area. This is good news for you if you have been waiting to put your house on the market.
Great news for Denver Metro real estate market! Denver has been named the number one market in recovery. What are the reasons?
If you’ve been reluctant to buy in our area, this should help assure you this is the best area to buy a house. You will be making a good investment for the future.
There are lots of houses out there to buy. Call me and I’ll help you find the very best house for your family and for the future.
Are you a first time buyer? Would you like a free $8000 rebate for your purchase? Call me and I’ll tell you how.
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BIGGEST NEWS:
RATES ARE DOWN AGAIN AS LOW AS 4.0% ON 30YR FIXED (CHECK OUR RATES)LOOKING FOR AN FHA LOAN? I CAN HELP YOU – Great Rate – Low Down PaymentREFINANCING OR BUYING A HOME – CALL ME FOR GREAT RATESAND EXCELLENT SERVICE.READ MORE POSITIVE PERSPECTIVES BELOW |
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Denver is ‘Most Improved’ U.S. Housing Market, Businessweek Says:
Denver is the “most improved U.S. housing market,” according to a new report from Bloomberg Businessweek. “In Denver, the economy and employment slowed just as other areas did during the recession, but things appear to be moving in the right direction this year,” the report says. read more here
Mortgage Applications Rise 9% After Rates Fall:
WASHINGTON—Applications for mortgages rose last week as consumers refinanced their loans at the lowest rates in more than 50 years. read more here
Denver-Area Home Resales Up 20% in May From 2009:
Even though federal homebuyer tax credits expired April 30, they continued to boost the Denver area’s home resale market in May, according to Metrolist Inc. data released June 8th. read more here
Denver-Area Luxury-Home Sales Jump 62%:
Denver-area sales of homes priced at $1 million or more jumped 61.8 percent in May from a year earlier, according to Coldwell Banker Residential Brokerage‘s monthly report on high-end sales. read more here
19% of Denver-Area Employers Plan Q3 Hiring:
Nineteen percent of Denver-area employers plan to hire in the third quarter, while 8 percent expect to cut their payrolls, according to a new quarterly survey by Manpower Inc. read more here
Denver Home Prices Up 4.4% From 2009, Case-Shiller Index Shows:
For the sixth month in a row, home prices in the Denver area showed a 4.4 percent year-over-year increase in April, and prices also rose 1.7 percent between March and April, according to the latest S&P/Case-Shiller Home Prices Index, released June 29th. read more here
Juju.com: Denver Improves a Notch in June Among Best Cities for Job Seekers:
Denver is in 10th place among 50 large U.S. cities in the latest ranking of the best markets for job seekers by career search engine Juju.com. read more here
Portfolio.com: Colorado Has 3 of Nation’s Top 10 Mid-Sized Business Markets:
Colorado has three of the nation’s top 10 mid-sized markets for business, and Boulder ranks No. 1, according to a report Wednesday from Portfolio.com. Fort Collins places third, and Colorado Springs seventh, says the national business news website. read more here
Greeley Ranks Among the Nation’s Top 10 Great Places to Retire:
According to the July/August issue of Where to Retire magazine. “Convenient to Denver and Rocky Mountain National Park, Greeley is a college town with an active arts and music scene and offers lower housing prices than common in some other areas of the state,” according to the article. read more here
Top Mortgage Story:
Mortgage rates down again
By Jim Woodard
During the last week in July mortgage rates dropped for the sixth consecutive week, according to a report from Freddie Mac. It reports that the 30-year fixed-rate mortgage (FRM) averaged 4.54 percent with an average 0.7 point for the week ending July 29, down from the previous week when it averaged 4.56 percent. Last year at this time, the 30-year FRM averaged 5.25 percent.
Read Full Article
Other Mortgage Stories:
Refi mortgage apps down, purchase apps up
New home sales up
FHA delinquencies down for 5th month
Impact of financial overhaul bill on housing
Homes in U.S. appeal to international buyers
Unique tiny home concepts
Confusion in reporting home price increases/decreases
New housing trends identified
How to avoid mortgage modification scams
Record low mortgage rates set stage for rising sales
“Strategic defaults” defined
Rising interest in special FHA mortgage
Mortgage rates down again
During the last week in July mortgage rates dropped for the sixth consecutive week, according to a report from Freddie Mac. It reports that the 30-year fixed-rate mortgage (FRM) averaged 4.54 percent with an average 0.7 point for the week ending July 29, down from the previous week when it averaged 4.56 percent. Last year at this time, the 30-year FRM averaged 5.25 percent.
The 15-year FRM averaged a record low of 4.00 percent with an average 0.7 point, down from the previous week when it averaged 4.03 percent. A year ago at this time, the 15-year FRM averaged 4.69 percent.
As we move into the month of August, the overall number of mortgage applications is trending downward, according to the Mortgage Bankers Association. The Market Composite Index, a measure of mortgage loan application volume, decreased 4.4 percent during the last week in July from the previous week.
The Refinance Index decreased 5.9 percent from the previous week. However, the seasonally adjusted Purchase Index increased 2.0 percent from one week earlier and is the highest Purchase Index observed in the survey since the end of June. The refinance share of mortgage activity decreased to 78.0 percent of total applications from 79.4 percent the previous week.
Coming off a historic low in May, sales of newly built, single-family homes rose 23.6 percent to a seasonally adjusted annual rate of 330,000 units in June, according to U.S. Commerce Department data.
“Today’s numbers are an encouraging sign that new-home sales are coming back from an expected slow period that followed the expiration of the home buyer tax credit program,” said Bob Jones, chairman of the National Association of Home Builders. “While we still have quite a way to go on the path to recovery, it’s good to see that we are headed in the right direction.”
“It’s worth noting that some of the new-home sales in June were due to move-up buyers who were able to sell their previous home to a tax-credit-eligible buyer while that program was active,” said NAHB Chief Economist David Crowe. “Also, while sales activity is still far from robust, it has picked up some momentum as positive factors such as historic low mortgage rates, great selection and attractive prices help draw potential home buyers back to the market. We anticipate that this momentum will continue.”
The Federal Housing Administration’s efforts to lower its delinquency rate is paying off. The numbers dropped again in June, marking the fifth straight month of declines.
According to FHA’s latest operations report, as of June 30, 532,757 of the mortgages it guarantees had spent at least 90 days in a delinquent status, which equates to a seriously delinquent rate of 8.3 percent. That’s down from 8.4 percent in May, and a significant slide from the 9.4 percent serious delinquency rate recorded during the first month of this year.
The Restoring American Financial Stability Act of 2010 impacts the housing industry in several ways. Examples: It provides $1 billion for emergency mortgage relief for qualified unemployed homeowners with reasonable prospects for reemployment. It reforms a number of current mortgage related practices and requires lenders to retain 5 percent of the risk related to mortgage loans.
Also, it authorizes a U.S. Department of Housing and Urban Development (HUD) Foreclosure Legal Assistance program, and requires the U.S. Department of Treasury to conduct a study on reforming the Housing Finance System. And it extends the Protecting Tenants at Foreclosure Act.
A growing segment of today’s homebuyers are citizens of foreign countries. The international appeal of residential properties in the United States is driven by the strength of the dollar, the increasing value of properties in some regions of the country, the emerging economic recovery, and the rising worldwide popularity of owning a home in the U.S. This trend was documented in the recently released National Association of Realtors’ 2010 Profile of International Home Buying Activity.
The NAR study and report showed that most international buyers came from 53 different countries around the world. The top four countries were Canada, Mexico, the U.K. and China/Hong Kong. With 23 percent of international buyers coming from Canada, the country has remained the largest buying group in the past three years. Foreign buyers from Mexico have been steadily increasing.
In 2010, Mexico replaced the U.K. as the second largest buying group with 10 percent of buyers. Buyers from the U.K. decreased from 10.5 percent in 2009 to nine percent in 2010. Eight percent of recent buyers came from China/Hong Kong.
Two key factors important to international clients when purchasing property in the U.S. are proximity to their home country and the convenience of air transportation. Florida typically attracts European, Canadian and South American buyers while the East Coast draws Europeans. The West Coast brings Asian buyers and the Southwest attracts Mexicans, NAR reported.
The current trend toward “tiny homes” is taking some interesting twists and turns. For example, the design and development of “Granny Pod” units was recently reported in the Washington Post. These are very small, manufactured units that can be trucked in and positioned in a homeowner’s backyard to serve as a temporary residence for a grandparent or other elderly or special-needs relative.
“As America grows older, its aging adults could avoid a jarring move to the nursing home by living in small, specially equipped, temporary shelters close to relatives,” the Post noted. It appears to be a very viable option for the growing number of families who feel responsible for older relatives. However, there are zoning restrictions to deal with, and neighbors who object to what might be considered an intrusion into their peaceful neighborhood.
Another concept is to design and build a home on a very, very small building site. One such home in Santa Barbara, California, was constructed on a 20-by-20 foot lot. There wasn’t much horizontal space to work with so the architect reached for the sky to accommodate needed rooms and features. It became a very tall, but skinny, residence.
Constructed exclusively of poured concrete, it consists of 800,000 pounds of concrete and 4 1/4 miles of rebar rising 53 feet above ground level and sitting on nine caissons extending 44 feet into the ground. The interior consists of creative tile designs, a 108-foot long, black walnut hand rail, key-hole window designs and multiple stone carvings.
Some organizations are reporting price increases, others report decreasing prices. One element that must be considered is the widely different stats that are reported from local and regional sources. Also, different home price categories are experiencing different price changes. In many markets, the low-priced homes and upper-tier (luxury) homes are showing most sales activity and rising price trends.
Nationwide, home prices during the last quarter posted 5.2 percent quarter-over-quarter gains, placing prices firmly 8.8 percent above levels experienced one year ago, according to one credible research group — Clear Capital: U.S. Regionally, the Midwest and South saw the largest quarterly price growth, while the West and Northeast showed more stable quarterly gain, according to the report.
Home price gains across the United States were helped largely by the quarterly jump in prices by the top 15 highest-performing major markets. Quarterly prices for the group are up an average 12.6 percent while yearly price gains are up 17.1 percent.
An interesting profile of the average American home was recently sketched out by the Department of Housing and Urban Development (HUD). It was revealed in a report summarizing results of a study of more than 130 million homes.
For example, the study found that most families with young children live within a mile of a public elementary school. The most common home heating fuel in the U.S. is gas. The survey showed that significantly more American homes are larger and have more bedrooms and bathrooms than homes 37 years ago. In addition, homes of 1973 were much less likely to have central air conditioning and other amenities considered commonplace today.
The median age of the American home is 36 years, though the survey finds that homes newly constructed since 2007 are generally larger, more expensive, have more bedrooms and bathrooms, and are more likely to include special amenities.
About 68 percent of U.S. homes are owner-occupied; 51 percent are located in suburban areas; 29 percent in central cities; and 20 percent outside metropolitan areas. The median size of an occupied home is 1,800 square feet (compared to 1,610 in 1985, the earliest year this information was collected), with owner-occupied units being larger than renter-occupied ones. Newer homes are also usually larger, with median size of 2,300 square feet.
Most homes (53 percent) have six or more rooms, with owner-occupied units generally having more rooms than renter-occupied ones. In 1973, only 39 percent of homes had six or more rooms. Newly constructed homes generally have more rooms — 65 percent have six or more rooms.
Mortgage modification scams can occur when unscrupulous people prey on borrowers who are struggling to keep their home, it was pointed out in a new PR program launched by Fannie Mae. Such an educational program is supported by most real estate and mortgage professionals.
While they promise to help, the people who perpetuate mortgage scams do little to no work, charge excessive fees, and use tactics that often put the homeowner at greater risk of losing their home. The key points and suggestions made by Fannie Mae to consumers are as follows: Do your homework and know your options. Ask questions and get explanations so you have a complete understanding of modification procedures.
Don’t pay for counseling. Free help is available. Beware of high-pressure sales tactics. Know the person you’re working with. Make sure your housing counselor is HUD-approved. Before responding to any person or organization offering to “save” you from foreclosure, find out if the organization is HUD-approved.
The lowest mortgage interest rates in decades is the key motivator for most of today’s home buyers, and homeowners, who want to refinance their mortgage. The volatile financial markets are holding yields of long-term bonds down, thus keeping home mortgage rates down to historic lows.
Surprisingly, these super low rates have not yet generated a significant boost to home sales, but many industry leaders feel the stage is set for growing activity. Holding down the current home sale volume are the tightened qualification standards and larger down payments required by lenders.
However, many homebuyers and potential buyers are doing their math and calculating how much they could save in monthly payments if they purchase a home now as opposed to waiting until the market settles down. Most of them realize that those mortgage rates will inevitably go up, along with home prices.
The strategic default of a mortgage is where a borrower who appears to have the capacity to pay his mortgage stopped doing so. Nearly one in five home loan defaults appear to be strategic, a recent study revealed.
Researchers suggest that the share of strategic defaults may have hit a plateau as total mortgage delinquencies may have also peaked. But those results are “heavily contingent” on the stabilization in home prices that materialized one year ago, as government stimulus aimed to set a floor for home prices.
A report finds that strategic defaults remains heavily concentrated in California, Florida, and western states — areas that have seen the biggest run-up and decline in home prices.
A previously little known FHA mortgage program is now becoming increasingly popular. It’s a special financing program that funds not only the purchase of a home, but also needed repairs and improvements.
The current popularity of the program is largely keyed to the many distressed properties now being purchased by today’s homebuyers. The bargain prices often justify their purchase even though the home may have certain defects or need a general face-lifting.
The purchase-rehab financing can now be obtained in one FHA loan. The Department of Housing and Urban Development has introduced enhancements to the streamlined 203(k) program to facilitate the purchase of property that needs only minor rehab work. The 203(k) program is the primary FHA program for the rehabilitation and repair of single-family properties. Unlike the basic 203(k) program where funding can be provided for the total reconstruction costs, the new program is intended to provide funding for only basic repairs, according to a report from the National Association of Realtors.
Given the fact that the cost of materials has risen, one of the primary changes to the program is that the minimum repair cost of $5,000 is eliminated and the ceiling is now raised to $35,000.
| Hope this news encourages you and asking you to remember I’m here to help with any real estate needs you may have: selling, buying, refinancing, or helping someone you know avoid foreclosure. Just give me a call at 720-208-6873 or reply to this email for Information, Integrity, Service & Solutions. |
Sharon
Sharon L. Mahoney
Assoc. Real Estate Broker
Mortgage Loan Originator
720-208-6873
Information, Integrity, Service & Solutions
Watch the following Video, then call me: http://youtu.be/gC9J4dkg6_w
Watch the following video and then call me.
REAL ESTATE NEWS:
This month I’m attaching the Metro Listing Service (MLS) 1st quarter statistics because I want you to see how all the numbers are revealing the housing market is heating up and making a turn around. In addition, the number of foreclosure filings have dropped significantly for the past three months. This may indicate we are turning the “short sale/foreclosed properties impact” corner that have negatively affected house prices for the past several years. Whether you want to sell or have been waiting to buy, this is the market you’ve been waiting for.
For buyers, there are lots of great “bargain” priced houses out there waiting for you. If you’re not sure whether you can qualify, I can help you find out in a matter of hours.
For sellers, statistics say sale prices are up from last year and are selling faster, so you can finally list your house for sale. I have two new beautiful Cherry Creek Properties for sale signs coming in this week. Do you need one in your front yard?
MORTGAGE NEWS:
Current rates for conventional 30 year fixed loans are at an all time low with overnight average posted as 4.87%* down from 4.89%* last week and the FHA rate average of 4.75%* is also remaining low. For an instant detailed rate quote, go to Check Today’s Rates, click on the far left menu “Interest Rates” and fill in the blanks for the loan you are looking for whether 30, 20, 15 year fixed, FHA, VA, ARM, and many other programs. Our fees and closing costs are the lowest in Colorado. We can’t tell how long these rates are going to last so if you are in the position to refinance don’t pass up this opportunity. Not sure if you should refinance? I can tell you when it’s right for you, just reply with your current loan’s interest rate and I’ll tell when refinancing would be right for you.
Have real estate or mortgage questions? Let me know if I can be of help to you or a friend,
Sharon
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