Archive for August, 2010
Beyond The Headlines
August 27th, 2010 categories: Buyer's Advice
The New York Times
New online help from Fannie Mae Since the start of the housing downturn, the number of Web sites and foreclosure-prevention companies claiming to offer help to struggling borrowers has greatly increased. While some of the businesses are legitimate, others are fraudulent and offer services that consumers may be eligible to receive free of charge.
KEEP THIS IN MIND
• This month, Fannie Mae – the government-sponsored entity that helps set lending standards for most mortgages-started a Web site, KnowYourOptions.com. The site contains elements distinguishing it from those aiming to prevent foreclosure. All of the information on the site is available in Spanish or English.
• KnowYourOptions.com provides video explanations of what users might accomplish in each of the tabbed section of the site. In the “Take Action” section, for example,” struggling homeowners are advised that the first step to take in seeking help with their mortgage is to contact their mortgage company.
• Other features of the site include contact information for mortgage companies and loan counselors, calculators to determine if the borrower is eligible for assistance, and information on commencing short sales or deeds-in-lieu of foreclosure.
• Another helpful Web site for consumers is Hope LoanPort, which allows struggling homeowners and housing counselors to submit financial documents to mortgage companies and track the status of their efforts to avoid foreclosure. Hope LoanPort was created by Hope Now, a consortium of 12 mortgage companies and 250 counseling agencies.
To read the full story, please click here:
http://www.nytimes.com/2010/08/22/realestate/22mort.html?_r=1&ref=realestate
In Other News…
Sacramento Bee
Buying an older home? REALTORS® giving $2,000 for certain energy-efficiency improvements The Sacramento Association of REALTORS®, aiming to overcome consumer reluctance about buying older, energy-guzzling houses, has launched a program to give qualified buyers $2,000 to help make energy-efficiency improvements.
To read the full story, please click here:
http://www.sacbee.com/2010/08/23/2977186/buying-an-older-home-realtors.html
The New York Times
Housing fades as a means to build wealth, analysts say Housing will eventually recover, but many real estate experts now believe that homeownership never again will yield rewards like those enjoyed in the second half of the 20th century, when houses not only provided shelter but also a plump nest egg.
To read the full story, please click here:
http://www.nytimes.com/2010/08/23/business/economy/23decline.html?ref=realestate
Los Angeles Times
Mortgage delinquencies remain high at 1 in 10 loans One in 10 American households with a home loan was behind on payments by at least one month this summer, the Associated Press reported.
To read the full story, please click here:
http://latimesblogs.latimes.com/money_co/2010/08/delinquencies.html
The Wall Street Journal
Mortgage fraud is rising, with a twist New data suggests that mortgage fraud-which got tougher to pull off after the collapse of the U.S. real estate market-is returning in a big way.
To read the full story, please click here:
http://online.wsj.com/article/SB10001424052748703824304575435383161436658.html?mod=WSJ_hpp_sections_personalfinance
Press Enterprise
Mortgage assistance programs help people through patches of unemployment In the current national economic crisis, unemployment has replaced mortgages that readjust to higher rates as the primary cause of home foreclosures. As a result, mortgage assistance programs are being offered to help people through the rough patches of unemployment.
To read the full story, please click here:
http://www.pe.com/business/local/stories/PE_Biz_D_unemployed22.2106053.html
Los Angeles Times
More recent mortgage modifications seem to be sticking Homeowners who had mortgages modified recently are faring better than those who did so earlier in the housing crisis, according to a report published Tuesday, possibly debunking predictions of a huge wave of defaults to come.
To read the full story, please click here:
http://www.latimes.com/business/la-fi-re-default-20100824,0,496548.story
Inland Valley Daily Bulletin
Area home prices jump Home prices in July rose 10.7 percent to $155,000 in San Bernardino County compared with the same time last year, according to a report released Tuesday.
To read the full story, please click here:
http://www.dailybulletin.com/ci_15884350
Los Angeles Times
Federal foreclosure prevention program is struggling Just as the housing market recovery has stalled, so has the Obama administration’s main program to ease home foreclosures.
To read the full story, please click here:
http://www.latimes.com/business/la-fi-obama-foreclosures-20100821,0,3901237.story
Keep this in mind …
• In the second quarter of 2010, 64 percent of first-time buyers could afford to purchase an entry-level home in California, according to the First-time Buyer Housing Affordability Index published by the CALIFORNIA ASSOCIATION OF REALTORS®.
• The median price of an entry-level home in California was $266,750 in the second quarter of 2010, with an estimated monthly payment of $1,470, including taxes and insurance.
• The minimum household income needed to purchase an entry-level home in California in the second quarter of 2010 was $43,960.
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
| Discussion: 2 Comments »
Beyond The Headlines
August 25th, 2010 categories: Buyer's Advice
Sacramento Bee
Appraisal sites on Net often fail to pin down accurate prices
Over the last five years, one of the newest developments in real estate is the ability for home buyers and sellers to search online for a home’s value. Popular Web sites such a Zillow.com, Cyberhomes.com, and Eppraisal.com offer free home estimates, but some consumers and real estate industry professionals say the values calculated often are inaccurate and misleading.
KEEP THIS IN MIND
• Online home appraisal Web sites assign home values without knowing the features or upgrades of a home or the neighborhood in which it is located. Some Web sites offer a price range of $20,000 – $40,000 more or less than the actual value of the home.
• Since housing markets are local and not every home of a certain size is the same value, consumers can be misled into believing a home is worth more or less than the actual value. Working with a local REALTOR® can help minimize inaccuracies in home values. REALTORS® can provide local housing market data and show homeowners and buyers recent sales of comparable homes in the area, to help determine an accurate list or offer price.
• While some agents report that Web estimates can educate clients and provide a reasonable assessment of market conditions and the home-buying process, working with a local REALTOR® is the best option.
To read the full story, please click here:
http://www.sacbee.com/2010/08/13/2955920/online-appraisals.html
In Other News…
Los Angeles Times
Federal Reserve bans lenders from paying bonuses to brokers for higher-interest-rate loans The Federal Reserve on Monday approved a rule banning lenders from paying bonuses to mortgage brokers and loan officers who get borrowers to agree to a higher rate than they need to pay.
To read the full story, please click here:
http://www.latimes.com/business/la-fi-fed-mortgage-20100817,0,638034.story
The Wall Street Journal
Mortgages: How to pay less
The interest rates for 30-year fixed-rate mortgages are in freefall, averaging just 4.44 percent on Aug. 12, according to Freddie Mac. Not only was that down from 5.07 percent in January, it was the lowest since Freddie began keeping records in 1970.
To read the full story, please click here:
http://online.wsj.com/article/SB10001424052748703723504575425734198113348.html?mod=WSJ_RealEstate_LeftTopNews
Los Angeles Times
Good-faith estimates get real Facing new penalties if they lowball estimates of upfront mortgage costs, lenders and brokers appear to be coming clean about how much borrowers will pay.
To read the full story, please click here:
http://www.latimes.com/business/la-fi-closing-costs-20100818,0,6277647.story
The New York Times
More borrowers opt for “cash-in” refinancing As the nation continues to endure the correction of the housing market, more buyers are opting for “cash-in” refinancing—putting extra money into a transaction to obtain cheaper loans and pay down debts.
To read the full story, please click here:
http://www.nytimes.com/2010/08/15/realestate/15mort.html?_r=1&ref=realestate
The Wall Street Journal
Low rates finally spark refinancings
After months of hovering near 50-year lows, mortgage rates have fallen even further, into uncharted territory and to a level lenders say is finally igniting more homeowner refinancing.
To read the full story, please click here:
http://online.wsj.com/article/SB10001424052748703723504575425793949599842.html?mod=WSJ_RealEstate_LeftTopNews
Los Angeles Times
FTC’s fake mortgage-company site aims to educate about scams The folks at Esteemed Lending Services are out to teach people a lesson. Esteemed Lending isn’t a mortgage lender at all. It’s a fictitious company. If it existed, it might have taken a lot of people for a ride down the road to ruin.
To read the full story, please click here:
http://www.latimes.com/business/realestate/la-fi-lew-20100815,0,7793028.story
Los Angeles Times
Homeownership to decline further, housing analyst predicts Housing analyst John Burns says he got “a lot of heat” for his recent report predicting that homeownership could drop below 62 percent—and maybe further—if the number of “strategic defaulters” who walk away from their underwater mortgages continues to increase, he said.
To read the full story, please click here:
http://www.latimes.com/business/realestate/la-fi-umberger-20100815,0,62214.story
What you should know about the market
• After a natural disaster, homeowners may begin to be solicited by home contractors and others offering to repair damaged property. Unfortunately, natural disasters also tend to bring out scam artists who prey on the situations of homeowners, often bilking them of thousands of dollars. Homeowners searching for reliable contractors are advised to first start by contacting their home insurance company and asking if the company can recommend a contractor.
• If the insurance company cannot recommend someone, homeowners should next search for local contractors. However, prior to hiring anyone, homeowners should contact the Better Business Bureau and state licensing agencies to ensure the company has met all state licensing and bonding requirements.
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
| Discussion: No Comments »
Beyond The Headlines
August 12th, 2010 categories: Buyer's Advice, Real Estate New, Seller's Advice
Sacramento Bee
42,000 of California’s jobless will get help with mortgages
The U.S. Treasury Dept. announced yesterday it is providing additional funding to a California
program to help homeowners struggling to make their mortgage payments due to unemployment.
The program, administered through the California Housing Finance Agency (CalHFA) will assist
struggling borrowers make up to six months of mortgage payments. Lenders will be asked to match the government contribution.
KEEP THIS IN MIND
• The program aims to help 19,000 unemployed borrowers in California between its
November launch and next July. An additional 23,000 borrowers will receive help over the
next two years, according to CalHFA estimates.
• To qualify for the program, borrowers must be unemployed and eligible for unemployment
benefits, and live in the home tied to the mortgage. Borrowers must be fewer than 90 days
behind on mortgage payments and meet low- and moderate-income guidelines. Income
requirements can be found at http://keepyourhomecalifornia.com/income.pdf.
• CalHFA is focusing on providing aid to unemployed borrowers struggling with purchase
loans, excluding refinanced loans. According to CalHFA officials, it is too difficult to decide
who “cashed out for a good reason and who didn’t.”
• More information about the CalHFA program, including eligibility, program summary,
income requirements, and frequently asked questions, can be found at
http://keepyourhomecalifornia.com.
To read the full story, please click here:
http://www.sacbee.com/2010/08/12/2953229/42000-of-californias-jobless-will.html
Bloomberg
“Buy and Bail” homeowners get past loan restrictions
Real estate professionals call it “buy and bail,” acquiring a new house before the buyer’s credit
rating is ruined by walking away from the old because it’s “underwater,” or worth less than the
mortgage. It’s an attempt to escape payments on a home whose value may never recover while
securing a new property, often at a lower price with a more affordable mortgage.
To read the full story, please click here:
The Mercury News
Median home prices up in San Jose, San Francisco areas, most U.S. cities
Home prices rose in nearly two-thirds of U.S. cities-including the San Jose and San Francisco
areas-this spring as buyers took advantage of tax incentives that gave the struggling housing
market a temporary jolt.
To read the full story, please click here:
http://www.mercurynews.com/breaking-news/ci_15742043
Los Angeles Times
Short sales soar in California, U.S.
Sales of homes for less than the amount of their outstanding mortgage debt have tripled since 2008, particularly in California and the Sunbelt, according to a report released Tuesday.
To read the full story, please click here:
http://www.latimes.com/business/la-fi-short-sales-20100811,0,7193924.story
In Other News…
The Washington Post
FHA tells Congress: Mortgage insurance claims are down; home prices a concern
Mortgages backed by the Federal Housing Administration have performed better than expected so far this fiscal year, though the improvements could be overturned if home prices sink, according to a report the agency submitted to Congress last week.
To read the full story, please click here:
CNN Money
20 percent of mortgages are underwater
More than 20 percent of the nation’s mortgage borrowers owe more than their homes are worth.
To read the full story, please click here:
http://money.cnn.com/2010/08/09/real_estate/fewer_underwater_borrowers
Los Angeles Times
Shopping around for title insurance can cut closing costs
If you finance your home through the normal lending process, a title search will undoubtedly turn up any liens for delinquent property taxes, unpaid loans, and unsettled claims by subcontractors for labor and materials.
To read the full story, please click here:
http://www.latimes.com/business/realestate/la-fi-lew-20100808,0,7858566.story
CNN Money
Foreclosures rise in July
The latest foreclosure numbers carried a mixed message: They’re up 3.6 percent from the month
before, but down 9.7 percent from 12 months earlier.
To read the full story, please click here:
http://money.cnn.com/2010/08/12/real_estate/July_foreclosure_totals/index.htm
What you should know about the market
• Companies promising to reduce or eliminate credit card balances and other debt for
customers no longer will be allowed to charge an up-front fee. The Federal Trade
Commission (FTC) recently announced new restrictions to crack down on the debt
settlement industry. Beginning Oct. 27, debt settlement companies only will be able to
charge a fee once a customer’s debt has been reduced, settled, or renegotiated.
• The new FTC regulations also require debt settlement companies to disclose to customers
how long it will take to get results, how much it will cost, and any negative consequences
that could arise from the process.
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
| Discussion: 4 Comments »
