BluefoxToday blog

Mortgage financing within reach for many based on median income

Esko Kiuru — Wed, 16 May 2012 16:18:25 -0700

NAR – the National Association of Realtors – recently put together a report that should spread some cheer on faces of everyone who is planning on purchasing a home. Actually, it also should quicken the heartbeat in the mortgage loan industry and among real estate agents. And the home building sector, too. And, for that matter, help stabilize the entire economy.

According to NAR, the national median income in the first quarter stood at $61,000, fair enough. So, if a mortgage applicant wanted to buy a property mirroring the national median price, the income to get the home loan approved would be $32,900 with a 10% down payment. Or $29,300 with a 20% down payment. All this is based on a solid credit rating, a 4% interest rate apparently on a 30-year mortgage, 25% front end ratio of principal and interest and it is a single-family home in a metropolitan area.

The above scenario certainly looks very encouraging for the housing market. Scores of mortgage applicants would qualify at least on income. The actual Freddie Mac’s weekly PMMS – primary mortgage market survey – produced last week a rate of 3.83% fixed for a 30-year deal. That simply is attractive, even better than in NAR’s sample.

Yet, home buyers are hardly overrunning mortgage loan shops dotting the landscape to fill applications and ask relevant questions. True, some regions in the country are doing better than others but overall the real estate market remains in a state of not knowing exactly where to go.

Home buying prospects know that. They like to see some more stability across the board, where prices settle down to form a foundation that holds. Again, values are cautiously rising in some areas where business is picking up and mortgage applications show promising upward trend. In other regions the situation is still in a flux. The famous shadow inventory continues to draw headlines especially in states like Nevada and Florida that raise a red flag about real estate prices.

Then there is the economy. It is slowly improving, but consumers are still wary about making major commitments like purchasing a home with a mortgage loan that could possibly sink them should there be further disruptions. They of course were badly spooked by the near financial market meltdown of a few years ago and are still recovering from that bizarre event. They are looking for more stability.

And then comes JP Morgan Chase galloping onto the scene, quickly reviving worries about the supposedly improving health of the banking sector. It – a major mortgage player - announced last week the loss of over $2 billion on fancy trades hedging the bank’s financial risks. The damage is likely much higher than that in dollar terms. Even its CEO couldn’t explain how it happened, and that’s what really is scary. It’ll take weeks, if not months, to figure out what went wrong. Frankly, they may never find out because this side of the business is rather complex. Setbacks like this gnaw away consumer confidence in the economy.

Regardless, for the brave, 3.83% mortgage money right now might be worth going for it.

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Provided by:

Esko Kiuru
Mortgage, real estate and apartment industry analyst

www.BluefoxToday.com - syndicated mortgage, housing and property management blog

eskokiuru@gmail.com
My cell: 702-499-1006

Las Vegas NV Area Sales by Type: Short Sales, REO, Standard Sales for March 2012 (includes Henderson & North Las Vegas)

Esko Kiuru — Thu, 10 May 2012 20:00:32 -0700

Renee's metrics are easy to read, showing what kind of unusual real estate marketplace Vegas still is. It happens rarely that 70% of home sales in any major housing market are REOs and short sales for months, like it has been in Southern Nevada.

Via Renee Burrows - Las Vegas Real Estate - (702-580-1783) www.ShackDiva.com (BrokerThe Force Realty-REALTOR-Estate-Probate-REO-Short Sale):

Las Vegas Area April 15, 2012 Active Listings by Type

REO: 1018 (17%)

Short Sale: 1964 (34%)

All Other: 2835 (49%)

March 2012 Sales by Type:

REO: 1812 (43%)

Short Sale: 1140 (27%)

Other: 1267 (30%)

This is just a guide for consumers to see what types of properties are closing vs what is listed. Currently we have the most closes in the REO sector and the least inventory in the REO sector and it is an extreme seller's market.

Click here to see last month's Listing and Sales Type Report

Click here to view the most recent stats

What Areas Do You Cover for your Las Vegas Area Real Estate Market Reports?

General Las Vegas Area Real Estate Market Reports are for MLS Areas 101-606 (the average consumer probably asks, what’s that?) It means that I cover the cities of Las Vegas, Henderson, North Las Vegas including unincorporated Clark County Townships of Whitney, Paradise, Winchester, Enterprise, Sunrise Manor & Spring Valley. They do NOT cover the areas of Boulder City, Pahrump, Laughlin, Moapa or Mesquite.

View More FAQ About My Las Vegas Area Real Estate Market Reports.

copyright 2006-2011 Renee Burrows, REALTOR®, The Force Realty 702-966-2494

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Provided by:

Esko Kiuru
Mortgage, real estate and apartment industry analyst

www.BluefoxToday.com - syndicated mortgage, housing and property management blog

eskokiuru@gmail.com
My cell: 702-499-1006

Homeownership ratio drops, apartment demand grows

Esko Kiuru — Sat, 05 May 2012 12:51:28 -0700

It’s hardly a surprise that the homeownership number continues to backpedal in today’s wobbly real estate market and tight mortgage milieu.

Foreclosures mercilessly push borrowers from their homes and this trend seemingly will continue for several more years as another 5-6 million homeowners could face the same fate. The recent $25 billion controversial settlement with mortgage loan servicers over alleged shady practices will predictably lead to home loan lenders accelerating court filings on delinquent borrowers. Mortgage money is very affordable but helps little when strict underwriting standards erode borrower approval chances. Inventory levels in many housing markets – like Las Vegas - are low keeping home buyers on the fence.

The Census Bureau reported that U.S. homeownership rate declined to 65.4% in the first quarter, tumbling a full point from the same time period a year ago. In comparison, it clocked in at 69.2% in the second quarter of 2004, an all-time record. In fact, it hasn’t been this far down since quarter one in 1997. Looking at historical metrics and present economic and housing trends it appears the number will settle somewhere between 60 – 64% when this turmoil comes to an end. Some real estate industry authorities claim it’ll stay there for a long time, too.

The apartment industry is one housing sector that is taking all this in with open arms. People rent because they have to save longer for the required down payment. They have to get their credit score to where it qualifies them for a mortgage loan, so they rent. Foreclosed borrowers need a roof over their heads. Many just want to see the residential market to improve from where it is now before jumping in.

According to Reis, Inc. – a New York commercial real estate information boutique – apartment vacancy rate in U.S. slipped to 4.9% in the first quarter which is the lowest since 2001. With supply slow to catch up to the increased demand a steady upward pressure on rents will undoubtedly make apartment management firms tally up nice profits. Soon, though, more apartments and other rental units will be introduced to the housing marketplace to balance things out.

Obviously a fundamental shift is underway in the housing and mortgage industries that will keep policy makers in Washington on their toes for the foreseeable future.

_______________________________________________________________________________

Provided by:

Esko Kiuru
Mortgage, real estate and apartment industry analyst

www.BluefoxToday.com - syndicated mortgage, housing and property management blog

eskokiuru@gmail.com
My cell: 702-499-1006

Housing: The Little Engine That Can't

Esko Kiuru — Thu, 03 May 2012 16:13:18 -0700

John,

Washington obviously is determined now to unload as many foreclosures as possible in Fannie Mae's, Freddie Mac's and FHA's books to reduce taxpayer risk. That is understandable. Yet, the consequences could be serious, as you mention. The deeply discounted homes investors buy will further lower property values in the neighborhoods and set existing homeowners even further back, making them potential foreclosure candidates. What about the tax base?

Via John Mulkey, Housing Guru (TheHousingGuru.com):

Housing, the force that has lifted the economy from almost all previous recessions, now appears to have become the little engine that can’t, as the nation seeks to find another means of raising the U.S. from economic stagnation. One only has to look at the graphs (courtesy of Calculated Risk Blog) to see just how far housing has to go in order to stimulate the economy as it has done following previous recessions. And a look at the unemployment situation shows that “full employment” is still years away.

Instead of seeking ways to artificially stimulate housing—efforts to date have been dismal and expensive failures—perhaps it’s time to accept the status quo and move on. One of the latest brainstorms from government is to sell huge segments of government owned foreclosures to investment groups who are expected to rehab and rent the homes to the growing number of renters. On the surface such a proposal appears to have merit; however, if it is price stabilization the government desires, it’s unlikely to be found in such a rental program.

Investors buying homes in bulk will receive sizable discounts, not only below market, but below the prevailing rate for foreclosures. Incentives and concessions will have to be offered in order to attract the number of investors desired. And such incentives will likely maintain downward pressure on prices in those areas where rentals are concentrated. It seems unlikely that neighborhoods filled with a large percentage of rental homes would see any appreciation in the near term; declines and stagnation would be the more likely scenario.

And if it’s “fairness” sought by DC, such a program is inherently unfair. While I’ve generally opposed government attempts at achieving fairness—true fairness is neither desirable nor possible—the beneficiaries will be the big banks and Wall Street firms that participate in the program. Such a program would favor billion dollar hedge funds—some of which participated in creating the housing crisis—over small, local investors who have a vested interest in rehabilitating the individual neighborhoods in which they purchase. The difficulties of managing hundreds of single family residences scattered about a city is far different from managing a single location, multifamily project; and I suspect we’ll discover some unintended consequences as the plan unfolds.

Another program currently being touted by the Administration—actually an expansion of one already in existence—would be to make refinancing available to a far greater number of struggling homeowners, especially those who owe more than their home is worth. And while the President offered a plan “that gives every responsible homeowner the chance to save about $3,000 a year on their mortgage,” millions of responsible homeowners will be locked out, unable qualify. The devil will certainly be in the details—the Administration promises more in the coming weeks—but some experts, including the FED, have estimated the benefit to be limited to only a small percentage of homeowners.

With 10 million or more homes expected to face foreclosure or short sale in the next few years, it seems unlikely that housing will continue to be the little engine that can’t. It can’t drive the economy into recovery and it can’t return the trillions lost when the bubble burst; only time, and lots of it, can do that. Political rhetoric may play well to those whose hopes have been dashed, but it does nothing to create actual change.

The Housing Guru: The expert source for all your housing questions—now featuring daily updates of Today’s Housing News

“ The Little Engine That Can’t” - Originally posted at: www.TheHousingGuruBlog.com

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Provided by:

Esko Kiuru
Mortgage, real estate and apartment industry analyst

www.BluefoxToday.com - syndicated mortgage, housing and property management blog

eskokiuru@gmail.com
My cell: 702-499-1006

Satellite tool introduced to mortgage fraud prevention

Esko Kiuru — Sat, 28 Apr 2012 11:23:08 -0700

Mortgage fraud of course will exist so long as mortgage loans are being issued. It’s just part of the business. Ever since the residential real estate market began nose-diving seven eight years ago specifically the property valuation fraud has steadily increased. The reason is rather clear; housing prices went chaotically over the edge, and still keep sinking in many areas. To get home loan applications approved by underwriters in a depressed market like today’s over-valuing property on appraisals or BPOs - broker price opinion – has become an issue for mortgage lenders. Usually when there is serious trouble with a file a buyback request will soon arrive in the mail and that can really hurt.

Interthinx, a mortgage risk management shop out of California, discovered that valuation fraud had doubled since 2006 and went to work for a suitable solution. It came up with the idea of using satellite images via Google Maps, adding them to its existing FraudGUARD program. Through Google’s image database a 360-degree street view of the property in real time is available for verification against submitted appraisals and BPOs. That’s surprisingly simple but also clever.

With this tool a mortgage lender risk analyst can let his fingers dance across the keyboard to pull up in seconds the incoming satellite data, easily decipher what he sees and then promptly act on it. On the other hand, manual verification of valuation numbers is time-consuming and costly and often simply impossible to do due to physical distances.

Despite Interthinx’ upgrade to its service the inside of the property still remains a mystery, yet the main characteristics on the outside, including the street address, will reveal plenty as to the BPO’s accuracy. It certainly adds a useful tool to the mortgage risk review process. A day will come when full appraisals are done using an advanced satellite hanging in space peering down counting rooms, tallying up their dimensions and whether there is a fireplace. Predictably, it still won’t completely make mortgage fraud go away, but will lessen its impact.

_______________________________________________________________________________

Provided by:

Esko Kiuru
Mortgage, real estate and apartment industry analyst

www.BluefoxToday.com - syndicated mortgage, housing and property management blog

eskokiuru@gmail.com
My cell: 702-499-1006

HOLY LOW AVAILABLE INVENTORY BATMAN: Las Vegas NV Area Market Watch March 2012 (includes Henderson & North Las Vegas)

Sun, 18 Mar 2012 09:22:31 -0700

**The Freefall Inventory Plunge Continues in Las Vegas!!!**

We are still squeezed for inventory. New REO listings are few and far between thanks to AB 284 with currently no end to that drama in sight. Multiple offers on well priced homes are widespread. Everyone from first time buyers to investors are taking advantage of "opportunity".

Read more about Las Vegas Real Estate Inventory Analysis here and consumers may comment on this post.

Las Vegas Area Real Estate Market Watch was created for informational purposes only.

This is for all the buyers wondering "where is the inventory"? The inventory is here, this graph shows that buyer interest is extremely high and gobbling up all that new inventory coming online!

This is also for people saying "shadow inventory exists"! Well I believe it exists but it also exists in Las Vegas short sales which has tripled to quadrupled it's formerly stagnant close ratio since late spring.

These are Listing/Under Contract & Pending/Sold Trends from December 2007-March 2012.

Contracted closings are stalled because of the large amount of Las Vegas short sales that are contracted.

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Siena (Las Vegas, NV) Real Estate Market Report for October 2009 (Homes For Sale/Under Contract/Sold)

Thu, 10 Dec 2009 07:41:26 -0800

Age Restricted (55+) Communities are scattered throughout the valley. Many offer a variety community amenities for Seniors who enjoy active lifestyles.

Siena (Sun Colony, not a true "Sun City" but appropriate age restricted community for this report) is located in the Summerlin Area of Las Vegas, NV (zip 89135). There are 2029 Homes in Siena ranging from 1034-3875 Square Feet. Community Amenities Include: Guard Gated, Gommunity Golf, Pool, Tennis, Gym, Clubhouse.

Siena Sun Colony Market Report:

Listings (11/15/2009): 54
Under Contract (11/15/2009): 22
Sold October 2009: 10
Absorption Rate: 5.4 Months of Inventory

Siena Sun Colony Summerlin is currently enjoying a seller's market. Since last month: Listings are UP +20, Pendings are DOWN -4, Units sold are DOWN -2

Renee Burrows carries the SRES (Senior Real Estate Specialist) Designation and has Probate and Estate experience. If you need a referral to a Probate or Estate lawyer, please contact me!

Seniors Real Estate Specialists® are REALTORS® qualified to address the needs of home buyers and sellers age 50+. The SRES® Council awards the SRES® Designation to those members who have successfully completed its education program.

By earning the SRES® designation, your REALTOR® has demonstrated necessary knowledge and expertise to counsel clients age 50-plus through major financial and lifestyle transitions involved in relocating, refinancing, or selling the family home. Your REALTOR® has received special training, gets regular updates, and is prepared to offer the options and information needed in making life changing decisions.

For Last Month's Siena Sun Colony Market Report Click Here

For Most Current Sun Cities Market Report Click Here

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Las Vegas NV Area Sold Terms & Trends January 2012 (includes Henderson & North Las Vegas)

Tue, 28 Feb 2012 06:06:48 -0800

Cash REMAINS KING in the Las Vegas Area Real Estate Market!!! It is important for every buyer in the Las Vegas Area Real Estate Market to understand who their buyer competition is in this currently competitive seller's market LV is enjoying! It is important to understand how a seller looks at each financing type:

Cash Offers: Generally have less contingencies and quicker close times. A cash offer may be accepted even if it is lower than a financed offer.

Conventional Financing: Less strict with lender required repairs but larger down payments and more strict credit guidelines.

FHA/VA Financing: Requires more scrutiny with lender required repairs via appraisal. In general these take longer to underwrite and close so a cash or conventional offer looks more enticing to the seller. FHA Requires the deed to be seasoned for several months so some flips bought at trustee's sales are generally out as options when competing with multiple offers!

Other: Less common and creative financing types such as Lease Options, OWC (Owner Will Carry), etc. The "other" category INCLUDES auction terms!!

Last Month's Report

Most Current Las Vegas Sold Terms and Trends Report

What Areas Do You Cover for your Las Vegas Area Real Estate Market Reports?

General Las Vegas Area Real Estate Market Reports are for MLS Areas 101-606 (the average consumer probably asks, what’s that?) It means that I cover the cities of Las Vegas, Henderson, North Las Vegas including unincorporated Clark County Townships of Whitney, Paradise, Winchester, Enterprise, Sunrise Manor & Spring Valley. They do NOT cover the areas of Boulder City, Pahrump, Laughlin, Moapa or Mesquite.

View More FAQ About My Las Vegas Area Real Estate Market Reports.

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Las Vegas NV Area Sold Terms & Trends August 2011 (includes Henderson & North Las Vegas)

Fri, 16 Sep 2011 09:16:12 -0700

Cash Offers: Generally have less contingencies and quicker close times. A cash offer may be accepted even if it is lower than a financed offer.

Conventional Financing: Less strict with lender required repairs but larger down payments and more strict credit guidelines.

Other: Less common and creative financing types such as Lease Options, OWC (Owner Will Carry), etc. The "other" category INCLUDES auction terms!!

Last Month's Report

Most Current Las Vegas Sold Terms and Trends Report

What Areas Do You Cover for your Las Vegas Area Real Estate Market Reports?

View More FAQ About My Las Vegas Area Real Estate Market Reports.

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Wanna Kill Your Transaction? Move in Before Your FHA Loan Closes!

Mon, 08 Nov 2010 19:43:48 -0800

I am beginning another series about “Things That Can Make Your Las Vegas Financed Home Purchase *Blow Up* in the Middle of a Transaction.”

My ultimate goal in this series is to make Las Vegas Home Buyers aware of the challenges of a specific home’s eligibility for financing.

Congratulations! Your lender just approved you to purchase a Las Vegas area home by looking at your check stubs, debt to income ratio and you are now approved to purchase a Las Vegas area home!

Hold the phone here, *you* may be eligible to purchase a home but is the house eligible for financing? This series is designed for you to research a home’s eligibility for financing.

DISCLOSURE: I am not a lender, title company, home inspector, contractor or appraiser. I am only speaking from personal experience by working with financed Las Vegas area home buyers. Hopefully you have hired a Las Vegas area real estate agentwho will be able to spot things that can *potentially* cause problems with your financing (mostly FHA/VA) before your contract to purchase a Las Vegas area home.

Much of Las Vegas is currently priced in fire sale status. Many times when you see unusually inexpensive homes there is a reason – they are not eligible for financing and the seller does not wish to rehabilitate the home to make it eligible for financing.

As I discussed in my last post in regards to difficulty in closing a transaction, sometimes buyers cannot efficiently coordinate a smooth close and they must find alternate housing. Sometimes the bright idea pops into their head that they can rent their new house until it closes. This is fine and dandy in the cash & conventional purchase world but not such a bright idea in the FHA financing world.

FHA has a little obscure rule about this – tenants must occupy the property for more than 6 months prior to purchase. It is very easy to get antsy while a buyer is waiting for a short sale lienholder(s) approval or trustee sale flip deed seasoning.

I have seen buyers move in prior to their property closing only to kill their own deal. Sometimes they will make arrangements directly with the sellers and cutting out the agents that are actually representing them. While not all agents (and I have even heard of some lenders) know about this rule for loan approval, it is always best to NOT make arrangements or change the terms and conditions of your contract without your agent’s knowledge!

While moving in to your new home prior to close seems like a win-win for both the seller and the buyer – The best thing to do when it is time for you to move and you haven’t closed on your new home purchase yet is to:

Find a short term rental home
Move in with friends
Move in with relatives

When you are that close to closing, you do not want to ruin your transaction! The sellers may not want to extend the contract for another 6 months to wait for you to qualify to purchase the home! Always have a “Plan B” prior to purchasing.

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Water Damage & Mold May Hurt Your Chances of Getting a Home Loan!

Sat, 30 Oct 2010 10:37:55 -0700

I am beginning another series about “Things That Can Make Your Las Vegas Financed Home Purchase *Blow Up* in the Middle of a Transaction.”

My ultimate goal in this series is to make Las Vegas Home Buyers aware of the challenges of a specific home’s eligibility for financing.

Congratulations! Your lender just approved you to purchase a Las Vegas area home by looking at your check stubs, debt to income ratio and you are now approved to purchase a Las Vegas area home!

Hold the phone here, *you* may be eligible to purchase a home but is the house eligible for financing? This series is designed for you to research a home’s eligibility for financing.

Today’s topic at hand is “Water Damage & Mold“.

Water Damage & Mold may occur for various reasons:

A Construction Defect From a Slow Leak
Malicious Exit From Previous Occupant
The “Elements” or Weather
Something “Accidental”

The effects of water damage and mold could be from deferred maintenance, recent or can occur in the middle of a transaction.

An example of deferred maintenance would be a leaky roof (weather elements) or construction defect such as an incorrectly plumbed or faulty toilet base & wax ring.

Even though we don’t have “Freezing Elements” too often here, it does happen every once in a while resulting in a cracked pipe here and there. More often than not, weather elements would be from heat & lack of utilities – baking, melting and cracking plumbed items.

Accidents do happen and some you have to wonder about bordering on being “malicious” from a former occupant. An example of this would be: a refrigerator water valve or plumbing valve left on. Water company comes to turn on water and forgets to check meter. House gets flooded. Another example would be a deep nail or screw in the wall securing something and it hits a pipe – water may pour down walls.

Many of the above examples may cause problems with lenders funding a loan. Sometimes the sellers are willing to remedy the situation, many times in the case of REO (aka BANK OWNED) – not.

A good home inspector will have a moisture meter on hand to be able to tell if a suspicious water damage or moldy area is dry or if moisture is still present and feeding the moldy source.

If your financing goes “kerplunk” due to a water damage or moldy mess, you may want to consider qualifying for an FHA 203K rehab loan!

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Las Vegas NV Area August 2009 Rental Home Market Report

Fri, 02 Oct 2009 12:56:46 -0700

Renters are becoming buyers finally as resale purchase prices drop and economic conditions in the valley are preventing high numbers of new incoming residents to move here. This has softened rental prices slightly as many investors are buying all cash in the market currently and then renting. More homes available for rent (higher supply) and less renters (lower demand.)

Units Leased:

August 2009: 2011
July 2009: 2029
June 2009: 1853
May 2009: 1760
April 2009: 1677
March 2009: 1825
February 2009: 1702
January 2009: 1651
December 2008: 1390
November 2008: 1405
October 2008: 1707
September 2008: 1531
August 2008: 1719
July 2008: 1697

Average Monthly Rental Rates:

August 2009: $1255
July 2009: $1405
June 2009: $1299
May 2009: $1348
April 2009: $1348
March 2009: $1365
February 2009: $1419
January 2009: $2083
December 2008: $1594
November 2008: $1506
October 2008: $1393
September 2008: $1610
August 2008: $1464
July 2008: $1510

Median Monthly Rental Rates:

August 2009: $1150
July 2009: $1195
June 2009: $1195
May 2009: $1200
April 2009: $1200
March 2009: $1200
February 2009: $1200
January 2009: $1200
December 2008: No Data
November 2008: $1250
October 2008: $1245
September 2008: $1250
August 2008: $1250
July 2008: $1250

Absorption Rate is stable from last month and remains a Landlord's Market at 2.6 months of inventory in the Rental Sector for the Las Vegas Valley.

How to check to see if the home you are renting is in default

Last Month's Report

If you own a home that needs to be rented out and would like to have a full time, licensed and permitted property manager contact you please fill out this form or call 702-966-2494 and press option 0

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Las Vegas Realty News: Changing Your Marital Status During a Financed Escrow!

Sat, 11 Dec 2010 13:48:14 -0800

This is part of my series: “Things That Can Make Your Las Vegas Financed Home Purchase *Blow Up* in the Middle of a Transaction.”

My ultimate goal in this series is to make Las Vegas Home Buyers aware of the challenges of a specific home’s eligibility for financing.

Congratulations! Your lender just approved you to purchase a Las Vegas area home by looking at your check stubs, debt to income ratio and you are now approved to purchase a Las Vegas area home!

Hold the phone here, *you* may be eligible to purchase a home but is the house eligible for financing? This series is designed for you to research a home’s eligibility for financing.

Today’s topic at hand is “Changing Your Marital Status During an Escrow“.

Here is another good way to mess up your escrow: Getting Married in the Middle of a Home Purchase! Especially if your potential mate has awful credit. While this isn’t “house specific” like most of my series is – this is definitely a good way for you to “blow up” your financing on your Las Vegas home purchase!

Lenders are now checking spousal credit even if the spouse isn’t on the loan for the home purchase.

There are many who have cooked up a scheme in their head with a foreclosure. “The home that was foreclosed on was in my name, not my wife’s name, we are going to purchase a home!” Probably won’t work.

Can I marry my boyfriend while I am buying this home? Do you want to hurt your chances of having issues during your escrow – especially if he has marginal credit?

You have waited this long to get married, you can wait until the home closes. There is no hurry! You can always add someone to the title after close (doesn’t necessarily have to be a spouse.) All you have to do is go to the Clark County Recorder’s Office and pay a nominal fee.

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FHFA nudges Fannie Mae and Freddie Mac into action on short sales

Esko Kiuru — Mon, 23 Apr 2012 09:01:18 -0700

If there ever was a nightmare for Realtors in the last few years in the housing market it was the short sale. The psychology profession is still compiling data on how many man hours of sleep per night they lose during each short sale adventure but when the official figure comes out sometime soon it must be several. It has been that bad. The current real estate recession made the short sale famous, the talk of the micro brew pub crowd. It can take months for a real estate agent to navigate one of them through all the different-size hoops the nation’s mortgage lenders have created. Because of its long and unpredictable time frame and sheer complexity many Realtors have steered clear of them.

Some real estate agents may now reconsider taking on short sales thanks to an upcoming policy change from Fannie Mae and Freddie Mac.

FHFA – Federal Housing Finance Agency – had a friendly talk with Fannie Mae and Freddie Mac the other day and cajoled them into setting up firm short sale response time guidelines for mortgage servicers managing their home loans. Under the new GSE program the servicers must respond within 30 days either from getting a purchase offer based on their present short sale practice or a signed BRP – Borrower Response Package – seeking a short sale review. If for some out-of-body reason the mortgage servicer cannot come to a decision in 30 days, the deadline can be extended to 60 days, but now updates must be provided the mortgage borrower every week.

Fannie Mae and Freddie Mac understand that at times getting a BPO – Broker Price Opinion – or an okay from a private mortgage insurer to proceed with the short sale can take extra time and that’s why they allow the additional 30 days. However, the backstop is 60 days, firm. Let’s say the home loan servicer makes a counter offer. Now the mortgage borrower has five business days to answer to that, to which the mortgage lender then shall respond in ten business days, according to the Fannie Mae and Freddie Mac plan. Fair enough.

These guidelines go into effect June 15, 2012, giving the mortgage servicers plenty of time to streamline their operations.

The real estate market is as we speak making some progress in climbing out of the abyss in many areas across the land and this development undertaken by the FHFA through Fannie Mae and Freddie Mac should push things further along in the right direction. States like Nevada – Las Vegas especially - California, Florida and Arizona where housing markets really took it to the chin during the downturn ought to feel its positive impact the most. The thing is, a host of real estate agents would’ve liked to see this being done a few years ago. Well, like they say; better late than never.

_______________________________________________________________________________

Provided by:

Esko Kiuru
Mortgage, real estate and apartment industry analyst

www.BluefoxToday.com - syndicated mortgage, housing and property management blog

eskokiuru@gmail.com
My cell: 702-499-1006

Important Tips for home buyers going to an open house this weekend.

Esko Kiuru — Wed, 25 Apr 2012 19:29:48 -0700

Good information for home buyers getting ready to visit open houses this spring. One of the key aspects is to get pre-qualified beforehand for a mortgage loan since many sellers won't even consider a purchase offer without one.

Via GITA BANTWAL, REALTOR,ABR,CRS,SRES,GRI BUCKS County & Philadelphia, PA HOMES (RE/MAX Centre Realtors):

Tips for buyers going to an open house this weekend.

1. The most important thing to remember is that the listing agent represents the seller and owes fiduciary duty to seller.

The agent will be friendly and ask you questions and answer any questions you may have.

The first thing you should do when you enter the house is mention that you are working with a buyer agent . If the agent agrees, you can preview the house.  The agent does not have to honor business cards, you should ask them if they will do so.

When it comes to new construction most builders in our area require the agent to accompany the buyer the first time. You can request your agent to call the builder in advance and ask if it is ok for you to go on your own.

There may be other buyers also looking at the house. If you love the house do not say too much in front of the agent or the other buyers.

If other buyers find out that you may be writing an offer and they too are interested, they may beat you to it and you may lose out on the house.

The agent at the open house will mention whatever you say to the seller and this may hurt your negotiation power. Do not say anything that you do not want the seller to know. Your agent may have explained buyer agency and how it works.

2. On the morning of the open house make a list of open houses you plan on attending and plan your route based on the time and distance of the homes. Read as much description of the homes as possible so that you will not waste time going to homes that do not suit your needs or are way out of your budget. I have had buyers come to my open house and their price range is half of what the house is listed for.

3. Here are ways to find out about open houses :

    a. Real estate agents advertise it in the mls. Your agent can email you listings of open houses in your area.The agent may also call the listing agent and inform that you may be visiting the open house.

   b. Agents also advertise open houses on Craigs list, Trulia, ActiveRain, local newspaper,and major newspaper in the area.

   c. Many agents put up signs the previous evening. On your way home from work make a note of open houses and google the information to see if the homes are affordable and have the amenities you need.

   d. Ask your friends to tell you if there are open house signs in their neighborhoods, if you are looking to move there. We often have people who have friends who want to move to the area.

4 Before you go to open houses this weekend, sit down with a lender and find out the amount you are qualified for. If you see a house you like, you will be able to make an offer and not lose out on the house. In many parts of the country the market has improved and we are seeing multiple offers.

Gita Bantwal is a Realtor with RE/MAX Centre Realtors in Bucks County, a Northern suburb of Philadelphia. You can view 1000s of listings on her web site www.GitaBantwal.com

She can be reached at 215-343-8200x124 or direct 215-275-8491 or via email gita01@aol.com

Gita specializes in Active adult communities and is a Seniors Real Estate Specialist. She holds the ABR designation (Accredited Buyers Representative) and specializes in selling to first time buyers as well as move up buyers.Gita also hold the CRS designation , Certified Residential Specialist and the CDPE designation as well. Information about real estate market is deemed to be correct but is subject to errors and omissions and should be verified independently.. Opinion expressed by me or others in my post and comments is not to be construed to be legal advice.

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Provided by:

Esko Kiuru
Mortgage, real estate and apartment industry analyst

www.BluefoxToday.com - syndicated mortgage, housing and property management blog

eskokiuru@gmail.com
My cell: 702-499-1006