Archive for November, 2010
Beyond The Headlines
November 27th, 2010 categories: Buyer's Advice
DS News
California Realtors Offer Mortgage Assistance for Unemployed
The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) recently launched a new program that allows home sellers to purchase mortgage protection coverage and offer it as an additional incentive to home buyers who purchase their home.
KEEP THIS IN MIND
• The “Home Payment Protection Program” (HPPP) is available through California REALTORS® who offer it to sellers at the time the property is listed. HPPP is optional, is paid for by the seller, and costs either $200 or $275, depending on the amount of coverage the seller elects to purchase.
• The program covers both first-time and repeat buyers for 12 months from escrow closing. If the home buyer loses his or her job as a result of a layoff during the qualified time period, HPPP will pay the buyer up to six monthly payments of up to either $1,000 or $1,500, depending upon the level of coverage the seller chose at the time of the listing.
• The payment for HPPP is made at the time of closing, per the seller’s escrow instructions. HPPP remains on the property for as long as it is listed with the REALTOR® under the original listing contract. The buyer cannot renew, extend, or enhance the coverage under the HPPP, nor purchase it independently.
• Sellers who would like to offer the Home Payment Protection Program should ask for an application from their REALTOR®.
Read the full story:
http://www.dsnews.com/articles/car-offers-mortgage-payment-assistance-program-for-second-time-2010-11-22
In Other News… The Washington Post
REALTORS® group lobbies against credit-score hits once equity line limits are cut
In a major policy move, the NATIONAL ASSOCIATION OF REALTORS® is calling upon Fair Isaac to “amend its formulas to avoid harming consumers whose utilization rates increase because their available lines of credit [are] reduced” despite on-time payment histories. The group wants FICO to ignore the utilization rate for such consumers or compute the score as if the credit max had not been reduced.
Read the full story:
http://www.washingtonpost.com/wp-dyn/content/article/2010/11/19/AR2010111903776.html
CNN Money
Fewer homeowners behind on mortgage payments
The number of mortgage borrowers behind in their loans dropped during the three months ended Sept. 30 to a seasonally adjusted 9.13 percent, according to a report released by the Mortgage Bankers Association.
Read the full story:
http://money.cnn.com/2010/11/18/real_estate/mortgage_delinquencies_decline/index.htm
The New York Times
New lending guidelines from Fannie Mae
New lending guidelines being rolled out by Fannie Mae will make securing a mortgage a lot easier for some borrowers, but harder for others.
Read the full story:
http://www.nytimes.com/2010/11/21/realestate/21mort.html?_r=1&ref=realestate
Mercury News
‘Unrealistic asking prices’ hurt home sales
The real estate market in California has been hit by triple trouble: The usual seasonal slowdown, a weak economy, and “unrealistic asking prices.”
Read the full story:
http://www.siliconvalley.com/ci_16693668
The Wall Street Journal
Shadow inventory of homes rising
The “shadow inventory” of unlisted bank-owned homes and potential foreclosures increased to 2.1 million units in August, up 10 percent from one year earlier, according to new estimates from CoreLogic, a real-estate research firm.
Read the full story:
http://blogs.wsj.com/developments/2010/11/22/shadow-inventory-of-homes-rising/
The Washington Post
Foreclosure takes toll on increasing number of children
Researchers have begun to examine what happens to people after they lose their homes and are becoming especially concerned about the harm done to children.
Read the full story:
http://www.washingtonpost.com/wp-dyn/content/article/2010/11/21/AR2010112104255.html?hpid=topnews
San Francisco Chronicle
Paying down mortgage usually not financially wise
While some people are worrying about how they will make their next mortgage payment, others are wondering whether it makes sense to make extra payments in advance.
Read the full story:
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/11/23/BU0E1GFR79.DTL&tsp=1
What you should know about the market
• The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) issued its October sales and price report this week, which shows that home prices in California rose 2.3 percent compared with a year earlier, but were down 1.8 percent compared with September.
• C.A.R.’s report also showed that sales of existing, single-family homes declined 3.5 percent and 19.6 percent month-over-month and year-over-year, respectively. C.A.R President Beth L. Peerce says “October’s home sales figures reflect the seasonal decline in sales that typically occurs this time of year. Additionally, persistent worries about the economy and job security are affecting home sales, despite low mortgage rates and strong affordability.”
• C.A.R.’s Unsold Inventory Index for existing, single-family detached homes increased slightly to 6.5 months in October from 6.1 months in September. The index was 4.2 months in October 2009. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.
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Beyond The Headlines
November 19th, 2010 categories: Buyer's Advice
Los Angeles Times
Refinancing now could be better than waiting for mortgage rates to drop further
Mortgage rates on 30-year, fixed rate loans are hovering near the lowest level on record since 1951. While some home buyers are putting their home purchases on hold hoping rates will go even lower, many industry experts are advising homeowners with rates in the upper 4 percent range to refinance.
KEEP THIS IN MIND
• Homeowners with rates in the upper four percent range are likely to benefit from refinancing, according to Peter Ogilvie, president of First Residential Mortgage Corp. in Santa Cruz, Calif. He says refinancing to a lower rate often produces monthly savings, as long as the borrower can qualify under today’s industry credit guidelines and loan-to-value underwriting standards.
• Some homeowners also may be good candidates for no-cost refinancing, where the title, escrow, and lender closing charges either are added to the mortgage principal balance or paid for over time with a slightly higher rate. The upsides to this option are reduced monthly payments, improved cash flow, and no outset of dollars at settlement.
• Borrowers who want to become debt-free faster and can afford it, ought to consider refinancing out of a 30-year term loan into a 15-year term. Fifteen-year mortgages carry lower rates than 30-year loans, but their faster amortization schedules require higher monthly payments.
• When considering whether refinancing is the best option, consumers are advised to take into account all of the fees associated with the refinance and decide if the money saved is worth the cost of the refinance.
Read the full story:
http://www.latimes.com/business/realestate/la-fi-harney-20101114,0,6276584.story
In Other News…
The Washington Post
States, mortgage lenders in talks over funds for borrowers in foreclosure mess State attorneys general and the country’s biggest lenders are negotiating to create a nationwide fund to compensate borrowers who can prove they lost their home in an improper foreclosure, state and industry officials said.
Read the full story:
http://www.washingtonpost.com/wp-dyn/content/article/2010/11/16/AR2010111607100.html
The New York Times
Mortgage preapproval is harder to get
When properly done, mortgage preapproval can speed up the purchase process by providing a rigorous assessment of the maximum amount a buyer can afford to borrow, based on a formal credit check and verification of income and assets.
Read the full story:
http://www.nytimes.com/2010/11/14/realestate/mortgages/14Mort.html?_r=1&ref=realestate
The Sacramento Bee
First-time home buyer index rises slightly
The CALIFORNIA ASSOCIATION OF REALTORS®’ First-time Buyer Housing Affordability Index released Monday said the percentage of buyers who could afford to purchase an entry-level home in California stood at 66 percent in the third quarter, up from 65 percent in the second quarter and 64 percent in last year’s third quarter.
Read the full story:
http://www.sacbee.com/2010/11/17/3191095/first-time-homebuyer-index-rises.html
Los Angeles Times
Home seizures decline 9 percent in October
Lenders repossessed 9 percent fewer homes in October, an indication that the foreclosure freezes put in place by several major banks could be slowing the record pace of home seizures this year, if only temporarily.
Read the full story:
http://www.latimes.com/business/la-fi-foreclosure-20101111,0,1857948.story
San Diego Union-Tribune
California consumers have the nation’s best credit scores, according to a study by CreditKarma.com.
Read the full story:
http://www.signonsandiego.com/news/2010/nov/10/california-consumers-have-nations-highest-credit-s/
CNN Money
Home prices expected to slide another 8 percent
The robo-signing controversy is just another issue that the already sluggish housing market didn’t need – but most analysts do not think it will have far-reaching impact.
Read the full story:
http://money.cnn.com/2010/11/01/real_estate/housing_market_state/index.htm
Los Angeles Times
Shared homeownership could mean paying your neighbors’ bills
For those who have a lot of cash or can get credit, this could be an ideal time to buy a house – the foreclosure crisis has pushed prices down and interest rates are way low.
Read the full story:
http://www.latimes.com/business/la-fi-perfin-20101107,0,921835.column
The New York Times
At legal fringe, empty houses go to the needy In a sign of the odd ingenuity that has grown from the real estate collapse, a businessman in Florida is banking on an 1869 Florida statute that says the bundle of properties he has seized will be his if the owners do not claim them within seven years.
Read the full story:
http://www.nytimes.com/2010/11/09/us/09foreclosure.html?_r=1&scp=1&sq=%22At%20legal%20fringe,%20empty%20houses%20go%20to%20the%20needy%22&st=cse
What you should know about the market
• The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) this week issued its third quarter First-time Buyer Housing Affordability Index (FTB-HAI), which indicates the percentage of households in California who could afford an entry-level home in the state during that period.
• The percentage of first-time buyers who could afford to purchase an entry-level home in California stood at 66 percent in the third quarter of 2010, according to C.A.R.’s FTB-HAI. In the second quarter of 2010, the Index was a revised 65 percent and was 64 percent in the third quarter of 2009.
• First-time buyers, who tend to purchase homes equal to 85 percent of the prevailing median price, needed to earn a minimum annual income of $42,300 to qualify for an entry-level home of $266,620 during the third quarter of 2010. The monthly payment, including taxes and insurance, was $1,410, assuming a 10 percent down payment and an adjustable effective interest rate of 3.66.
• At 85 percent, the High Desert region was the most affordable area in the state. The San Francisco Bay region was the least affordable in the state at 51 percent, followed by the Santa Barbara area and the Santa Clara County regions, both at 53 percent.
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Beyond The Headlines
November 12th, 2010 categories: Buyer's Advice, Seller's Advice
The Wall Street Journal
The jumbo-mortgage comeback
Smaller and regional lenders are issuing more new jumbo loans and doing more refinancings, which could help bolster home sales in some areas.
KEEP THIS IN MIND
• Jumbo mortgages are mortgages deemed “too big” to be sold by lenders to government-supported agencies such as Fannie Mae and Freddie Mac.
• The loan limit of a jumbo mortgage varies depending on location. In high-cost areas, including many areas in California, jumbo loans are generally considered those that exceed $729,750. In other areas, the jumbo loan limit usually is capped at $417,000.
• Some borrowers applying for jumbo mortgages are finding the processing time at larger lenders can be as long as four months, while some smaller institutions can process a jumbo mortgage as quickly as 30 to 60 days.
• Additionally, borrowers seeking jumbo mortgages for condos or vacation properties also may be better served using a local lender or contacting a mortgage specialist, as many large lenders have reduced their lending activity.
• With jumbo mortgages, borrowers still need excellent credit profiles and must provide complete documentation and verification of income. Down payments of 20 percent to 40 percent also tend to be required for a jumbo mortgage.
Read the full story:
http://online.wsj.com/article/SB10001424052748704506404575592741466524972.html?mod=WSJ_hpp_sections_personalfinance
In Other News…
The New York Times
Paying off a mortgage Paying off a mortgage or even paying down the balance early might seem enticing to most borrowers. There’s the big savings in interest payments and the freed-up cash flow that can result, not to mention the emotional benefit of wiping out what for most people is the largest financial commitment of a lifetime.
Read the full story:
http://www.nytimes.com/2010/11/07/realestate/mortgages/07mort.html?_r=1&ref=realestate
Los Angeles Times
Federal Reserve’s proposed home appraisal rules may not prevent inaccurate valuations
You may have missed it, but the Federal Reserve proposed far-reaching new rules Oct. 18 that could affect home real estate appraisals – and millions of owners’ equity holdings – nationwide.
Read the full story:
http://www.latimes.com/business/realestate/la-fi-harney-20101031,0,6145510.story
SmartMoney
Do you have to repay your home buyer credit?
If you claimed a federal income tax credit for a 2008 home purchase, you’ll probably have to pay it back over 15 years, starting with your 2010 Form 1040 (due next April). In contrast, if you claimed a credit for a 2009 or 2010 purchase, you probably won’t have to pay it back.
Read the full story:
http://www.smartmoney.com/personal-finance/taxes/do-you-have-to-repay-your-homebuyer-credit/
Los Angeles Times
A tale of two housing busts: Why is California recovering and Florida still struggling?
California and Florida had a lot in common during the housing industry’s last cycle. But in the last year or so, California’s housing market has begun recovering, while Florida’s remains on the critical list.
Read the full story:
http://www.latimes.com/business/realestate/la-fi-foreclosure-states-20101105,0,4031207.story?page=1
The Wall Street Journal
Foreclosure mess slowed September home sales
U.S. pending home sales slipped for the first time in three months in September as foreclosure moratoriums slowed sales.
Read the full story:
http://blogs.wsj.com/developments/2010/11/05/foreclosure-mess-slowed-september-home-sales/
Los Angeles Times
Fannie Mae opens center to help distressed homeowners Housing finance giant Fannie Mae has opened a center devoted to helping distressed homeowners in the Los Angeles area.
Read the full story:
http://www.latimes.com/business/realestate/la-fi-fannie-mae-20101110,0,1008337.story
CNN Money
Fed: Small banks crack down on mortgage lending
Even with interest rates at historic lows, you might still have a hard time getting a mortgage: Small banks have tightened standards when it comes to lending to home buyers, according to a survey issued Monday.Read the full story:
http://money.cnn.com/2010/11/08/news/economy/banking_lending/index.htm
The New York Times
More closing jitters The final weeks before a mortgage closing can be nerve-racking for any borrower, but new guidelines from Fannie Mae calling for an 11th-hour inspection of finances may mean even more headaches.
Read the full story:
http://www.nytimes.com/2010/10/31/realestate/31mort.html?_r=1&ref=realestate
What you should know about the market
• The recent nationwide foreclosure moratorium brought about a new term used to describe people who sign documents without carefully reading them: robosigning. Although robosigning described bank employees who signed off on thousands of documents without reviewing them, they’re not the only ones blindly signing documents they haven’t thoroughly read. Consumers often do the same thing.
• It is especially important that consumers don’t “robosign” on a new mortgage. When reviewing loan documents, consumers are advised to search for two particular terms: A prepayment penalty and the margin rate on adjustable mortgages.
• A prepayment penalty – a fee for paying off a mortgage early – ranges from 1 percent to 3 percent of the total mortgage amount. Consumers who find this clause in their mortgage note and weren’t told about it are advised to ask to have it removed during the loan application process.
• For borrowers with adjustable-rate mortgages (ARM), consumers should check how their rate will adjust after the first few years. The adjustment is based, in part, on the profit the lender makes when it sells the loan to an investor, which is called the “margin rate.” Buyers can find the margin rate on the second page of their mortgage note. If the number is higher than 3 percent, consumers should question the margin rate. Reasonable rates generally are considered to be in the 2.5 to 3 percent range.
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Beyond The Headlines
November 5th, 2010 categories: Buyer's Advice
The Sacramento Bee
California expects mortgage-aid program to begin in weeks
The California Housing Finance Agency (CalHFA) reported this week that its “Keep Your Home California” program will be delayed because of logistical issues with the program. The program was scheduled to begin Monday, Nov. 1
KEEP THIS IN MIND
• The “Keep Your Home California” program is a $1.83 billion government aid program that will pay down loan balances and provide monthly cash assistance to struggling California homeowners.
• One of the logistical complications that has caused the delay is the fact that Fannie Mae and Freddie Mac last week instructed their loan servicers to participate in the program, dramatically increasing the number of potentially eligible homeowners.
• Funded with federal money, the program offers four different types of cash assistance for an estimated 100,000 low- to moderate-income California homeowners. Additionally, eligible borrowers must have endured some sort of loss of income.
• The two primary forms of aid include $875 million dedicated toward unemployed Californians who need help making their monthly payments, and $790 million to be used to directly reduce mortgage loan balances.
• Although the program has been delayed for several weeks, homeowners struggling to make their mortgage payments are advised to not wait for assistance programs to begin before contacting their servicer or lender. Instead, homeowners should begin working with their lender or servicer at the first sign of difficulty.
• More information about the “Keep Your Home California” program can be found at www.keepyourhomecalifornia.org. A toll-free hotline soon will be established.
Read the full story:
http://www.sacbee.com/2010/11/02/3151100/california-expects-mortgage-aid.html
In Other News… CNN Money
Three ways low mortgage rates can work for you Just when it looked like mortgage rates couldn’t fall any further, they did. So what’s in it for you? A lot, potentially.
Read the full story:
http://money.cnn.com/2010/11/02/real_estate/make_low_rates_work.moneymag/index.htm
San Francisco Chronicle
Home ownership stays at lowest level in a decade.
The nation’s homeownership rate remained at its lowest in more than a decade, hampered by a rise in foreclosures and weak demand for housing.
Read the full story:
http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2010/11/02/national/w080228D90.DTL SmartMoney
Should you refinance if you’re over 50?
With interest rates near record lows, refinancing has never looked so tempting – especially for people nearing retirement, who’d love some extra cash to pad their diminished savings. But for homeowners over 50, there’s more to consider than just a lower rate.
Read the full story:
http://www.smartmoney.com/personal-finance/real-estate/should-you-refi-over-50/
The Wall Street Journal
Refinance in under a year? Maybe
Low mortgage rates have some homeowners considering refinancing, even if it has been less than a year since they last refinanced or bought their home.
Read the full story:
http://online.wsj.com/article/SB10001424052748704865104575588560217191720.html?mod=
WSJ_hp_MIDDLENexttoWhatsNewsForth
Los Angeles Times
Foreclosure activity up across most U.S. metro areas
The foreclosure crisis intensified across a majority of large U.S. metropolitan areas this summer, with Chicago and Seattle – cities outside of the states that have shouldered the worst of the housing downturn – seeing a sharp increase in foreclosure warnings.
Read the full story:
http://www.latimes.com/business/la-fiw-foreclosure-20101028,0,6074148.story
The Wall Street Journal
Mortgage Bankers push housing recovery to 2012 Last week, the nation’s mortgage bankers released a report saying that they expect the housing market to continue limping along into next year. Things could pick up, they say, in 2012.
Read the full story:
http://blogs.wsj.com/developments/2010/10/26/mortgage-bankers-push-housing-recovery-to-2012/
Los Angeles Times
Wide variation seen in mortgage servicers’ performance
Data suggest a wide variation in how well the firms handle such things as dealing with delinquent homeowners and negotiating loan modifications.
Read the full story:
http://www.latimes.com/business/la-fi-mortgage-servicers-20101028,0,5446511.story
Sacramento Bee
$8.3 million available in Cash for Appliances California’s Cash for Appliances program had about $8.3 million in rebate funds remaining as of last week.
Read the full story:
http://www.sacbee.com/2010/10/29/3141950/83-million-available-in-cash-for.html
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