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Archive for June, 2010

What NOT to do when buying a home.

June 29, 2010 Leave a comment

Your home buying process is well underway. The sellers accepted your offer to purchase. The home is officially under contract and you’re counting down the days to closing. The lender pre-approved you, so buying the house is a sure thing, right?

Not quite. Nothing is certain until the keys are in your hands. There are still major hurdles to get past before you close, and your actions between now and closing can create headaches, slowdowns, and even stop the transaction.

Read more…

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Categories: Real Estate

Where did the Home Buyers Tax Credit Go?

June 28, 2010 Leave a comment

An amendment that would have extended the closing deadline for the homebuyer tax credit by three months failed on the Senate floor this week. Senate Majority Leader Harry Reid (D-Nevada) proposed the extension, and the amendment itself was approved by a large margin last week as an add-on to H.R. 4213, the American Jobs and Tax Loopholes Act. Republican senators, though, defeated the full measure on Thursday, for the third time, when Democrats moved to end debate and push it to a chamber vote. Reid has indicated that after three unsuccessful attempts, he plans to drop the matter altogether. The amendment would have extended the tax credit deadline for closing on a home purchase to September 30. The current deadline is June 30. The National Association of Realtors (NAR) says some 180,000 homebuyers who signed contracts in time will not be able to make the June 30 closing deadline, simply because of the time it takes for lenders to complete transactions. The trade group estimates that 75,000 of those who will miss out on the tax break are buyers of distressed properties. NAR says its members have reported that as many as one-third of qualified applicants have already been notified by lenders that their mortgages will not close before June 30, due to the sheer volume of applications in the pipeline. The tax credit amendment was just one piece of the multi-faceted bill that was primarily intended to extend unemployment benefits for Americans out of work for more than six months. Republicans rallied against the measure on the grounds that it would have added $30 billion to the “already staggering national deficit,” they said.

from www.dsnews.com

Categories: Real Estate

New Low for Mortgage Rates

June 24, 2010 Leave a comment

Long-term mortgage rates fell to the lowest levels since Freddie Mac began keeping track this week.

Freddie Mac’s (NYSE: FRE) weekly rate report says a 30-year fixed-rate mortgage averaged 4.69 percent in the week ending June 24, down from 4.75 percent last week. A year ago, 30-year mortgages averaged 5.42 percent.

The average rate on a 15-year fixed rate mortgage fell to 4.13 percent this week, the lowest in at least two decades.

A one-year adjustable-rate mortgage averaged 3.77 percent, down from 3.82 percent last week.

While low mortgage rates remain a stimulus for housing sales, the loss of the home-buyer tax credit is expected to slow sales in the months ahead. Earlier this week, the National Association of Realtors reported that existing home sales in May fell 2.2 percent from April, though existing home sales were still up more than 19 percent from a year earlier.

The sales picture was brighter in the Triad. For example, May home sales in Greensboro were up 32 percent, while sales in High Point increased 28 percent.

Article Source: http://www.bizjournals.com/triad/stories/2010/06/21/daily44.html

Categories: Real Estate

New home sales down after FHA tax credit cut off.

June 23, 2010 Leave a comment

Existing Home Sales Down 2.2 Percent In May

by The Associated Press

June 22, 2010

Sales of previously occupied homes dipped 2.2 percent in May, signaling that a boost from home-buying tax credits is fading sooner than expected.

Planet Money

Last month’s sales fell from the previous month to a seasonally adjusted annual rate of 5.66 million, the National Association of Realtors said Tuesday. Analysts who had expected sales to rise expressed concern that the real estate market could tumble once the benefit of the federal incentives is gone entirely, starting next month.

Sales have climbed 25 percent from the 4.5 million annual rate hit in January 2009 – the lowest level of the recession. But they’re still down 22 percent from the peak rate of 7.25 million in September 2005.

The report counts home sales when a deal closes. So federal tax credits of up to $8,000 for home buyers likely influenced May’s results. The deadline to get a signed sales contract and still qualify was April 30. Buyers must close their purchases by the end of this month.

The tax credits were expected to lift sales in May and June. Lawrence Yun, the Realtors chief economist, said delays in the mortgage-lending process and put about 180,000 potential buyers in limbo. He’s unsure if they will qualify by the June 30 deadline. The trade group is pushing Congress to extend the deadline for closing a sale until Sept. 30.

The report is “a worrisome sign for what will occur in July and thereafter when the effect of the tax credit is behind us,” said Joshua Shapiro, chief U.S. economist at MFR Inc., an economic consulting firm in New York.

The drop in May sales was led by a more than 18 percent decline in the Northeast. Sales were unchanged in the Midwest, but rose nearly 5 percent in the West and 0.5 percent in the South.

The inventory of unsold homes on the market dropped 3.4 percent to 3.9 million. That’s an 8.3 month supply at the current sales pace, compared with a healthy level of about six months. The median sales price in May was $179,600, up 2.7 percent from a year earlier.

Foreclosures and short sales – in which the lender agrees to accept less than the total mortgage – made up 31 percent of sales in May. First-time buyers made up 46 percent.

The report “suggests that even government stimulus in the form of a tax credit isn’t enough,” to support the U.S. housing market, wrote Guy LeBas, an analyst with Janney Montgomery Scott.

Cited from NPR.org
Link to Article http://www.npr.org/templates/story/story.php?storyId=128005172&ft=1&f=1001&utm_source=twitterfeed&utm_medium=twitter

Categories: Real Estate

Search Foreclosures for Free

June 22, 2010 Leave a comment

http://www.mrlbayarea.com/Foreclosure-Search

We offer on our website www.mrlbayarea.com the ability for anyone to search foreclosure properties. It’s a great tool to find the right property to invest in. There isn’t much more to say other than its easy to use and you get a good amount of information about the property. So go check it out!

Categories: Real Estate

Real Estate Headlines – 6/18/10

June 18, 2010 Leave a comment
Categories: Real Estate

From DS News – California’s Foreclosure Activity Drops Across the Board: Report

June 16, 2010 Leave a comment

Foreclosure activity in California is beginning to trend downward. The locally-based tracking firm ForeclosureRadar says its statistics dropped last month for every stage of the foreclosure process – with new defaults falling more than 17 percent.

It’s the second straight month that the company has recorded across-the-board declines. Filings at each step of foreclosure – default, sale, repossession – also posted sharp drops from year-ago levels. While the numbers appear to paint a clear picture of improvement, ForeclosureRadar remains cautious in its analysis.

“Given the staggering number of delinquent home loans, foreclosure activity should be rising not falling as we found again this month” said Sean O’Toole, founder and CEO of ForeclosureRadar.

O’Toole explained, “We have recently witnessed a number of cancellations where the owners have vacated the

property and are clearly not working to modify their loan or complete a short sale. The most telling statistic that we present today may be that it takes lenders two months longer to foreclose then it did a year ago.”

The only significant increases from the prior year in ForeclosureRadar’s report were cancellations, up 141.3 percent, and time-to-foreclose, up 30.5 percent from May 2009. The company says it now takes lenders 235 days to complete a foreclosure in the Golden State, from the filing of the default notice to the auctioning of the property.

While extended foreclosure timelines may be skewing resolution numbers, it should be noted that newly initiated foreclosures declined significantly last month in California.

Notices of default filed against delinquent homeowners – the first step in the foreclosure process – fell 17.25 percent from April to May, according to ForeclosureRadar’s market data. They were down 43.34 percent compared to May 2009.

Notice of trustee sale filings, which serve as the homeowner’s final notice before the home is auctioned, dropped 11.88 percent on a month-to-month basis in May, and were 35.78 percent below year-ago levels.

ForeclosureRadar reports that banks took back 13,775 properties in May, 5.75 percent fewer than they did in April.

The company puts California’s total REO inventory at 87,964 homes, down from 90,000 in April and 18 percent lower than it was a year ago.

 

Cited from DS News.

Categories: Real Estate