Three Real Estate Trends Emerging This Spring


Three Real Estate Trends Emerging This Spring

There are three trends emerging in the real estate market this spring that continues to confirmed the increase in the real estate market.

1. The first trend we need to look at is the fierce competition that is occurring in many of the markets today.  Housing affordability is at a record high, due in large part to falling home values and mortgage rates that remain near record lows.  More buyers are taking notice and jumping off the sidelines.  To add fuel to the fire, the number of homes on the market is shrinking which will undoubtedly cause an increase in prices.

In addition, there has been a large push to get some of these homes that are foreclosed upon or short sales off the market by encouraging investors to buy them.  It is working as investors have been snapping up homes at bargain prices and often times in all-cash deals, which makes the competition for traditional home buyers a little stiffer.

2.  As the price of renting increases, renters are showing more desire to become home owners.  During a recent survey, 59.9% of renters indicated that they intended to renew their lease.  This is the lowest percent since 2009.  In a blog I posted earlier, it talked about the fact that more renters are able to buy homes than in many years.

3. The third trend that you will see emerging this spring is mortgages may be a little pricier.

Fannie Mae, Freddie Mac, and the Federal Housing Administration recently have raised their loan fees, which means home buyers can expect to pay a little more for their mortgage this spring.

“Those who don’t have credit scores in the high 600s to low 700s may be forced to go the FHA route,” says Ed Conarchy, a mortgage planner at Cherry Creek Mortgage in Gurnee, Ill. “And they will be stuck with the higher fees.”

Buyers with smaller down payments can expect to pay more for FHA mortgage insurance premiums, which have risen to 1.75 percent of the loan total. Bankrate.com cites an example illustrating the higher fees: A borrower who takes out a $200,000 FHA loan will likely have to pay about $3,500 for mortgage insurance upfront.

It is important to remember that even with these increases in buying a home now is still a great time to buy.  Interest rates are still hovering around 4%.

I urge you to talk to a real estate professional who can give you the details you need to make an informed decision.

As always, if I can help or answer any of your real estate needs, please don’t hesitate to text or call me at 615 417-8182 or email me at RolandLow1@gmail.com

Roland

Short Sales Catching up on Foreclosures


Short Sales Catching up on Foreclosures

Short sales are catching up on foreclosure sales according to recent housing data.

Mortgage companies have ignored offers on short sales even though short sale properties sold for 23% less and foreclosed homes sold for 29% less on average.  With recent steps taken by government agencies to speed up the process, this trend is quickly turning around.

In January, 2011 short sales made up 16.3 percent of home sales and foreclosures made up 24.9 percent.  In one year, short sales now make up 23.9% while foreclosures made up 19.7%. The sale of short sale homes will prevent many of those homes going into foreclosure and possibly left empty.

In recent weeks, banks and government agencies have taken steps to speed up the short sales process, setting new timelines for how long mortgage servicers have to respond to short sale offers.  In addition, some banks, such as Wells Fargo and JPMorgan Chase, are even offering some home owners case incentives  – up to $35,000 – if they agree to do a short sale instead of letting the home fall into foreclosure.

Whether you are looking at buying a short sale home on the market or any other real estate transaction I urge you to talk to a real estate professional who can give you the facts you need to make an informed decision.

As always, if I can help or answer any of your real estate needs, please don’t hesitate to text or call me at 615 417-8182 or email me at RolandLow1@gmail.com

Roland

 

FHFA Announces Policy Changes to Speed Up Short Sales


 The Federal Housing Finance Agency announced yesterday a new policy to speed up the process that mortgage servicers use to handle short sales, deeds-in-lieu, and deeds-for-lease for mortgages that are backed by Fannie Mae and Freddie Mac.

Throughout the recession, banks have been ridiculously slow in accepting offers on short sales to the point that many, if not most, people shied away from short sales.  This resulted in homeowners who were struggling with their mortgage to go into foreclosure rather than being able to sell their property.  After foreclosure, banks many times left the property vacant making no attempt to sell nor to maintain the property all the while keeping the original amount of the mortgage on their books and inflating the banks net worth.

The FHFA, the regulator of Freddie and Fannie will require mortgage servicers to respond to a request for a short sale offer within 30 days.  Servicers will also be required to make a final decision on the short sale offer within 60 days.

The new policy will roll out starting June, 2012 and aims to “prevent foreclosures, keep homes occupied, and help maintain stable communities.”

This policy does not have the teeth I think most real estate agents, and certainly short sale sellers, would like to see, but it is a start.  For example:  If a short sale offer is still under review after 30 days, banks will only be required to provide weekly status updates to borrowers regarding the pending short sale offer.

It is important to remember that buyers who put in an offer to buy property have the exclusive right to cancel the offer at any time before the acceptance of the offer by the seller (or banks in this case).

The FHFA also says that by the end of the year there will be additional announcements from Fannie and Freddie that are aimed at addressing borrower eligibility and evaluation, simplifying documents, property valuation, fraud mitigation, payments to subordinate lien holders, and mortgage insurance.

Whether you are looking at buying a short sale home on the market or any other real estate transaction I urge you to talk to a real estate professional who can give you the facts you need to make an informed decision.

As always, if I can help or answer any of your real estate needs, please don’t hesitate to text or call me at 615 417-8182 or email me at RolandLow1@gmail.com.

Roland

Source in part: Federal Housing Finance Agency