Real Estate

[2Real4me!]

NorCalRooskie Wrote:So when should I buy???

PM me and I'll tell you when.

[stevepiv]

2Real4me! Wrote:

NorCalRooskie Wrote:So when should I buy???

PM me and I'll tell you when.

Awwwweeee comeon. We want to know!!!!!!

[2Real4me!]

Fed cuts key interest rate by 1/4 point
Wednesday April 30, 2:16 pm ET
By Mark Felsenthal

WASHINGTON (Reuters) - The Federal Reserve lowered a key U.S. interest rate by a modest quarter percentage point on Wednesday in what may be the last of a series of cuts aimed at aiding an economy hit hard by a housing slump and credit market turmoil.
The Fed's action takes the bellwether federal funds rate to 2 percent, the lowest since December 2004. It was the seventh reduction in a campaign that has brought rates down by 3.25 percentage points since mid-September.
President George W. Bush on Tuesday said the U.S. economy faced a "tough time," a point underscored on Wednesday by a report that showed U.S. gross domestic product expanded at a slim 0.6 percent annual rate in the first quarter.
While the growth rate was a bit stronger than economists had expected, it reflected a buildup in inventories that may weigh on the economy in coming months.
Other details in the report were decidedly weak.
Consumer spending, which accounts for two-thirds of U.S. output, grew at the slowest pace since 2001, business investment fell and homebuilding continued to nosedive, recording the biggest drop in 26 years.
Fed Chairman Ben Bernanke told Congress on April 2 that "recession is possible," adding that the Fed believed there might be a "slight contraction" in the economy in the first six months of the year.
At the same time, with gasoline prices heading toward $4 dollars a gallon and strong global demand pushing up food prices, some Fed officials have worried that a desire to bolster the economy could divert the central bank's attention from inflation pressures.
In addition to rate cuts, the Fed has taken a number of emergency steps to ease credit strains that have threatened to make the economy's ills worse, pumping billions of dollars into markets to keep them from choking on mortgage-related bets.
At their meeting on Wednesday, Fed officials discussed a new measure -- paying interest on commercial bank reserves held at the central bank -- that could improve their ability to provide liquid funds to the market.
The Fed has also mulled whether expanding the size of its term auction facility cash auctions for banks and extending the duration of those loans beyond 28 days could help ease still-tight credit conditions.

[2Real4me!]

What are Short Sales and How do I benefit if I qualify?

Short Sale
Frequently Asked Questions about a Real Estate Short Sale

Q: What is a real estate short sale?


A: A short sale is when a lender allows the borrower to sell their property for less than the amount owed on the loan. The seller turns the proceeds of the sale over to the lender, in full satisfaction of the debt. A short sale is generally done to prevent foreclosure on the property.

A lender will allow a short sale if they believe it will result in a smaller financial loss than a foreclosure.


Q: What are the Benefits of a real estate short sale for the seller?


A: The seller benefits from a short sale in that it prevents a foreclosure on their credit history. Typically, a short sale is quicker than a foreclosure and less costly, and the homeowner may find it less stressful. The borrower is also able to get out from under a debt that is no longer manageable.

In most cases, the negative consequences are relatively short lived.

Many homeowners are able to purchase another home within two to three years if they have a short sale on their credit history. Negative credit consequences for foreclosure last up to seven years.


Q: What are the Benefits of a real estate short sale for the lender?


A: Banks and other mortgage lenders have shareholders, who naturally want to see them make a profit, not take a loss. Too many losses on the books can indicate a company is in trouble, and it makes shareholders nervous!

By doing a short sale, the lender is able to clear away some bad debts, and recover at least a portion of the monies owed, before the borrower becomes totally insolvent and defaults entirely.

Also, agreeing to a sort sale means the lender won’t have to incur the time and expense of insuring and maintaining the home, putting it on the market, and waiting for a buyer. During a distressed real estate market, a home can stay active on the market for months and these costs begin to add up.


Q: What are the Disadvantages of a real estate short sale for the buyer?


A: Due to the circumstances of the sale, the potential buyer may have a few extra hurdles in negotiation before the deal can be sealed. The lender has to approve the selling price, closing costs, and other fine points, and they may not be as eager to accept the buyer’s offer. The current owner has to be given an opportunity to vacate the property, and closing can take 45-90 days to complete. It is a time consuming process that many buyers aren’t willing to wait out.

Also, short sale homes are offered “as is.” Lenders generally won’t pay for repairs discovered during a home inspection, pest inspection or the purchase process.


Q: What are the Disadvantages of a real estate short sale for the seller?


A: A borrower contemplating a short sale should be advised that it may not eradicate all of their debt. Unless they get the lender to agree to accept "payment in full without pursuit of any deficiency judgment” they can still owe the difference between the mortgage balance and the discounted amount of the sale. If a deficiency judgment is allowed, it may have a negative impact on the sellers credit history.

Credit ratings are negatively impacted by short sales as well, but the opinion of professionals varies as to the extent of the damage. Some quote the drop of points on a credit report to be between 200 and 300 points. More conservative experts estimate a drop of 80 to 100 points.

It is best to consult a real estate lawyer or tax advisor on these matters, before making the decision to do a short sale.


Q: What are the Disadvantages of a real estate short sale for the lender?


A: In a short sale, the lender loses money. The lender may lose money on the original loan amount and they lose money from any future interest payments. In addition, the lender uses time and resources during the short sale process.


Conclusion


A short sale is rarely beneficial for all parties involved and often has lasting consequences. Short sales devalue properties in a neighborhood, ruin a homeowners credit profile and can leave banks with a substantial loss on their investment. In addition, short sales may cause homeowners in the area to rush and sell their own homes to avoid taking a loss down the road, and new buyers avoid neighborhoods where the number of short sales is high. As a result housing sales can suffer. Distressed homes seem to self-perpetuate in neighborhoods. Before considering a short sale, consult with a real estate and credit professional.

[2Real4me!]

The difference's between Foreclosure such as Judicial and Non-Judicial.

Each state in the U.S. handles it's real estate foreclosures differently, it's important to understand those differences and know your specific state's procedures. The terms used and timeframes vary greatly from state to state, but the following information provides a general overview of the different processes and considerations. If you haven't done so yet, you can review our guide to each state's procedures at foreclosure procedures.

Judicial Foreclosures
Judicial foreclosures are processed through the courts, beginning with the lender filing a complaint and recording a notice of Lis Pendens. The complaint will state what the debt is, and why the default should allow the lender to foreclose and take the property given as security. The homeowner will be served notice of the complaint, either by mailing, direct service, or publication of the notice, and will have the opportunity to be heard before the court. If the court finds the debt valid, and in default, it will issue a judgment for the total amount owed, including the costs of the foreclosure process. After the judgment has been entered, a writ will be issued by the court authorizing a sheriff's sale. The sheriff's sale is an auction, open to anyone, and is held in a public place, which can range from in front of the courthouse steps, to in front of the property being auctioned. Sheriff's sales will require either cash to be paid at the time of sale, or a substantial deposit, with the balance paid from later that same day up to 30 days after the sale. Check your local procedures carefully. At the end of the auction, the highest bidder will be the owner of the property, subject to the court's confirmation of the sale. After the court has confirmed the sale, a sheriff's deed will be prepared and delivered to the highest bidder, when that deed is recorded, the highest bidder is the owner of the property.

Non-Judicial Foreclosures
Non-judicial foreclosures are processed without court intervention, with the requirements for the foreclosure established by state statutes. When a loan default occurs, the homeowner will be mailed a default letter, and in many states, a Notice of Default will be recorded at approximately the same time. If the homeowner does not cure the default, a Notice of Sale will be mailed to the homeowner, posted in public places, recorded at the county recorder's office, and published in area legal publications. After the legally required time period has expired, a public auction will be held, with the highest bidder becoming the owner of the property, subject to their receipt and recordation of the deed. Auctions of non-judicial foreclosures will generally require cash, or cash equivalent either at the sale, or very shortly thereafter.
It is important to note that each non-judicial foreclosure state has different procedures. Some do not require a Notice of Default, but start with a Notice of Sale. Others require only the publication of the Notice of Sale to announce the sale, with no direct owner notification required. You need to know the specific procedure for your state.

[2Real4me!]

Fannie, Freddie woes hit the nation's homebuyers, owners
Friday July 11, 3:29 pm ET
By Les Christie, CNNMoney.com staff writer

The fate of Fannie Mae and Freddie Mac may be hanging in the balance but many mortgage borrowers already find themselves struggling to find affordable loans.
Because of the turmoil surrounding Fannie and Freddie, recent borrowers are likely paying nearly 10% more in monthly mortgage payments than they would have.
The added cost stems from an erosion in confidence in Fannie and Freddie, according to Mark Zandi, chief economist for Moody's Economy.com.
Fannie and Freddie borrow money in the bond markets to pay for the mortgages they buy from lenders and then sell to hedge funds and other investors. Their cost of borrowing that money has now gone up, and that filters down to lenders who have to charge more to borrowers.
"It does have an impact on mortgage interest rates," said Richard DeKaser, chief economist for National City Corp. "It will be more expensive for Fannie and Freddie to acquire mortgages and that will ripple through the market."
And mortgages are not only getting more expensive for ordinary borrowers but they're also harder to obtain as lenders tighten up their standards.
"Some lenders are really pulling in their horns," said Steve Habetz, a Connecticut mortgage broker. "They're getting scared. They're demanding really clean loan applications with every i dotted and every t crossed."
What is happening now is compounding the damage which has already devastated the housing market.
The troubles for Fannie and Freddie could even affect current mortgage borrowers since they put the housing rescue bills that Congress has been agonizing over for months in jeopardy, according to Zandi, who has testified before the Senate on aspects of the bills.
Congress has upped the value of the loans Fannie and Freddie can buy, as well as the total dollar amount they can hold.
And a bill in the Senate calls for an expanded effort by the Federal Housing Administration to insure risky mortgages. Fannie and Freddie are being called upon to cover the potential cost to taxpayers. Now their weakened position calls into question their ability to do so.
"The ability of [Fannie & Freddie] to become more aggressive in extending credit, which is what the policy makers hoped and planned for, may be compromised," he said. "It could further delay any housing recovery."

[2Real4me!]

This article was emailed to me from Old Republic Title Company in regards to this new program FHA Refinacing. I have many customers asking me about this loan program and even I was excited but like always you have to do your research before you sign your life away.

Senate Approved Housing Rescue Package

This bill does very little for very few. It does very much and too much for government.

This bill is over 600 pages long and no one has yet to publish the entire bill or expose what it actually contains. All we get are little snippets as we get in this post above.

Most published reports indicate that the “Cavalry is on the way”. They are “on the way” but be warned as to what the affects will be when they arrive.

Industry “insiders” along with government spokespersons want you to believe that by putting on “rose colored” glasses, we will see the situation the way they want us to see it and not the way it really is. I call this more “feel good” legislation and reporting of non facts. Are we as a people and a nation that gullible? I think not.

Couple of facts on this bill:
1. It authorizes the IRS to monitor each and every credit card transaction you make.

2. The tax break to first time homeowners is really a loan. It must be repaid in 15 years or when the house is sold. Think about this one. The government giveth and taketh back. Some tax break. A tax expert recently said that you will have to hire a tax accountant to prepare your return so it must be complicated.

3. If you take the tax deduction then your return will be audited.

4. The help to Fannie and Freddie will ultimately cost the tax payers $300 billion.

5. It creates a new “regulator”. Don’t we already have enough regulators and beaurocratic establishmen?

Allowing people in foreclosure to refinance with FHA loans also does not work. For one, most WON’T qualify primarily based on Debt to Income requirements. I have done the math, the average wage earner will not qualify for the average priced home.

In the event they do qualify, THE GOVERNMENT BECOMES A PARTNER IN YOUR HOUSE. When you sell it you must split the appreciation/profits on the house. Why does the government need to be partners in our homes????

Communities will be funded in order to purchase foreclosed homes. Let’s see if I get this one right. A home is foreclosed, the owners are dispossessed (maybe even left homeless) so that the county can purchase that home and rent it out to government assisted tenants.

[2Real4me!]

America's Most Distressed Housing Markets

During the recent real estate run-up, flippers who bought and sold homes within a year often reaped great profits.

Today, you still see a lot of flipping, only buying and selling within a year often results in staggering losses.

Who is suffering? Regular homeowners, speculators and the foreclosed upon who try to get out of loans they can't afford or properties worth less than the value of their mortgages.

Hardest-hit are those in Las Vegas, Sacramento, Calif. and Los Angeles. There, more than half of last quarter's sales were for a loss, and as much as 20% of overall sales were by people who had lived in their homes for less than a year.

It's a similar story in places like San Francisco, Phoenix and Detroit.

"Nationally, one-third of homes are underwater, and 20% of transactions happening across the country are foreclosures," says Stan Humphries, vice president of data and analytics at Zillow.com, an online aggregator of real estate listings and public sales records.

"That's what drives up the number of home sales for a loss."

Behind the Numbers

Using data from Zillow.com, we looked at the country's 50 largest metropolitan statistical areas as defined by the U.S. Census and ranked them based on how many homes were sold at a loss in the second quarter of 2008 and what percentage of overall sales were made by sellers who'd lived in the home for less than a year.

Both are signs of the urgency felt by homeowners and speculators to relinquish properties due to distress, whether that's a result of a bad loan or a poor market. Distress is commonly used to describe homeowners behind on their mortgage payments but not yet foreclosed upon. This can come as the result of resetting adjustable-rate payments, job loss or from loans that should never have been written in the first place. The result, however, is the same: The mortgage is unlikely to be fully paid off by its current owners.

In cities that didn't experience a rapid run-up in home sale prices over the last five years, a large percentage of people selling at a loss is a part of a bigger economic decline. For Detroit or Memphis, Tenn., where 56.4% and 43.8% of last quarter's home sales were for a loss, it's a sign of rough times.

For markets like Phoenix or Atlanta, where prices spiked by double digits annually from 2002 to 2006, selling for a loss can be a positive sign that housing markets are actively correcting and that come-lately speculators are being flushed out.

That's little consolation to sellers there, however.

Flip-Flops

In Phoenix, 21.4% of last quarter's sales were flips made within the last year, and 52.1% of overall sales were for a loss. Not surprisingly, Phoenix home prices are down by 22% in year-over-year-terms, based on data from the National Association of Realtors. San Francisco, another market on our list, is down by 19%, which has sellers rapidly turning over properties to cut their losses.

Zillow's research of second-quarter sales and earlier selling prices showed that 48% of San Francisco metro homeowners sold at a loss and that 20% of overall sales were within a year of their last purchase.

Of course, it's important to note these are metro area statistics. In San Francisco's case this includes Oakland, where prices have dropped 35% over the last year, based on Trulia.com data from California's multiple listing service.

Part of that has to do with the number of foreclosures occurring in the area. According to RealtyTrac, a national aggregator of foreclosure listings, Nevada, Florida and California have the highest share of the nation's 1.5 million foreclosures.

California is a non-judicial state. This means that once a homeowner fails to remedy defaults within 117 days, his or her lender can publicly list and sell the property.

The result? In California markets like Riverside, Sacramento and Los Angeles, homes sold while in some stage of foreclosure represent 50%, 39% and 38% of total sales, respectively. That's bad for the people selling the homes, but good for the overall market's recovery as excess inventory gets burned off.

In Florida, a judicial foreclosure state, the courts are involved.

That gums up the works in a state with the second highest number of foreclosures in the country, according to RealtyTrac. Sales take longer, and judges can slow down the process further in an attempt to get the best deal for the seller.

"As prices go further down, and there are further losses, judicial states can be harder because judges are trying to protect sellers," says Pat Lashinsky, chief executive of ZipRealty, a national broker. "If the judge feels like it's not a good deal, there are situations where the judge might make a seller sit on the offer for 30 days."

That slows the market down, and helps explain why Florida cities like Miami, Orlando and Tampa are absent from our list despite unsold housing inventories at, or near, the top of national tables, according to the U.S. Census Department. What's more, home prices there have crashed by more than 25% in the last two years, according to the National Association of Realtors.

Even though foreclosure inventories are piling up and prices are down, sellers either cannot find buyers, or foreclosure homes are being held up in the courts. Florida markets' corrections are, as a result, delayed.

This is bad news, even as prices have started to head back toward pre-run-up levels.

"I hesitate to say that you're going to see markets stabilize around those historic levels," says Humphries. "But it means you're getting closer to rational levels."