Displaying blog entries 1-10 of 25
As it is well known, the housing market is uniquely bound to the U.S. Treasury. This is never more apparent than a policy found within the Treasury Department’s Office of Home Ownership. Laurie Maggiano is the architect of a plethora of the government-backed Making Home Affordable program, uniform guidelines for loan modifications, Home Affordable
“Her work at Treasury has not only helped servicers and investors adopt HAFA
The changes Maggiano will affect the tools provided to agents and consumers if they get bogged down in the midst of their short-sale process by:
The name short sales is becoming much more accurate to the shortening frequency short sales are entering the market. Freddie Mac initiated Standard Short Sale program on November 1st. Since then, the short sale process has become easier and more transparent.
"We estimate that the time to complete a short sale will decrease by approximately 50 percent to 75 percent," as a result of the changes, writes Tracy Mooney, Freddie Mac’s EVP in a recent blog post.
Here is a list of changes that took effect:
Source: “The Shorter Short Sale: Long on Borrower Benefits,” Freddie Mac Executive Perspectives Blog (Jan. 22, 2013)
Decreasing rates of foreclosures is a positive trend for home owners at large, but shifting trends result in a shifting reaction within the real estate market. The first result from the decreasing inventory was a beneficial growth in home prices across the board. The tighter inventory of a post REO flooded market has nearly run its course in controlling the market economists predict. In fact, CoreLogic goes so far as to say that home prices are stabilized enough to be back ‘on track’ in a way it has not been since 2006.
The stats are as follows:
Delinquencies are becoming rarer as banks opt for short sales/mortgage modifications over foreclosures. One big national trend within this larger narrative is that of the stark difference between judicial and non-judicial states. The only difference, judicial states must have their foreclosures go through the state’s court extending the timeline for a home to foreclose. Non-judicial states have clear their foreclosure pipeline whereas the judicial states are still trucking along.
“The foreclosure crisis has shifted east, to the judicial states, where the pipeline is slow,” says Khater. “The big driver in 2012 in prices increases [sic] was the decline in REOs, but I think the big move-down has already happened. The driving prices in 2013 will be the tighter inventory.”
Source: “Inventory Takes Center Stage as Foreclosures Fade,” The Wall Street Journal (Jan. 4, 2012)
With that list, I would also like to add some positive news. Foreclosure starts fell to a new –year low. They have dropped 28% from only a year ago.
The latest data offers “more evidence that we are past the worst of the foreclosure problem brought about by the housing bubble bursting six years ago,” says Daren Blomquist, vice president at RealtyTrac. “But foreclosures are continuing to hobble the U.S. housing market as lenders finally seize properties that started the process a year or two ago — and much longer in some cases. We’re likely not completely out of the woods when it comes to foreclosure starts, either, as lenders are still adjusting to new foreclosure ground rules set forth in the National
So here is another list--the greatest drops in foreclosures:
Trends are shifting! Foreclosures continue to drop so much so that the number of those not occurring has passed the critical mass of those that are coming on the market. Foreclosure rates have fallen 7% in September reaching their lowest since July of 2007.
“We’ve been waiting for the other foreclosure shoe to drop since late 2010, when questionable foreclosure practices slowed activity to a crawl in many areas, but that other shoe is instead being carefully lowered to the floor and therefore making little noise in the housing market — at least at a national level,” says Daren Blomquist, vice president at RealtyTrac. “Make no mistake, however, the other shoe is dropping quite loudly in certain states, primarily those where foreclosure activity was held back the most last year.”
Court processes are skewing the numbers slightly as each state handles their foreclosure process a little differently, but even with backlogs, slow court-approval, and other details, the trend is speaking loudly. Foreclosures are on the decline!
Shadow inventory is a real estate reference to properties that are either in foreclosure or those houses owners are delaying putting on the market until ‘the market improves.’ It creates a large degree of uncertainty because it is like a skilled poker player, not revealing the real estate market’s full hand. Data that is exclusive of shadow inventory paints a skewed picture of what the real estate market looks like.
Shadow inventory has been the looming dread behind the slowly recovering housing market. The rising number of short sales has greatly allowed the market to be more transparent.
"Although re-defaults and new delinquencies will continue to keep shadow inventory elevated, the rapid decline should prevent downward pressure on home prices going into 2013," according to Chase analysts. "Combined with better existing home sales, investors have reason to be optimistic about running recovery scenarios."
Source: “Shadow Inventory Declines by 1.2 Million in 2012,” HousingWire (Sept. 24, 2012)
Housing Prices Hitting Bottom
Economists have finally put their two cents in and have declared they agree that housing prices have indeed hit bottom.
Over the last three years, housing prices have been volatile. There is a loose pattern of home prices rising… rising all spring and summer and then dropping off in the fall and winter, but this year is predicted to be different. There is no foreseeable drop to come as the seasons shift.
While the fall months likely will bring out some sort of decrease in recent home price increases, “we have a much better supply and demand dynamic” than in previous years, Mark Fleming, CoreLogic’s chief economist, told The Wall Street Journal.
Better yet, home prices are boasting their largest jump this year as compared to the last six years. Even on a micro scale, comparing today’s prices with that of this February, they have risen 9.6%.
ALL VERY GOOD NEWS. Please comment and share the predictions of the market in your area.
Source: “Here’s More Evidence That Home Prices Have Hit Bottom,” The Wall Street Journal (Sept. 4, 2012)
“Distressed properties can have great appeal,” says Wendy Forsythe, executive vice president at Atlantic Pacific Real Estate. “Discounted prices and historically low interest rates make these homes affordable to many families who might otherwise not be able to buy a property. But buyers also need to be selective because not every distressed property is a bargain.”
Typical discounts on foreclosures are at about 19% on average. That number gets brought up and buyers have a tendency to become blinded to other relevant details that are top priorities in real estate. Here is a convenient list to keep in mind if you are looking to save the big on the distressed property sales:
Know any prior claims on the property. “If a distressed home has been financed with two or more loans then the sales process can be far more complex,” according to an article for RISMedia written by Atlantic Pacific Real Estate.
Get Financing. How does a buyer hope to purchase the property? By preparing financing in advance, buyers are able to move more efficiently when a distressed property does come on the market.
Judge the Condition. Getting a deal my result in getting in over your head. Getting a thorough home inspection prior to committing financially to anything!
Foresee Delays In Advance. Ask your realtor to talk you through any potential delays.
Source: “Buying a Distressed Home: What You Need to Know,” RISMedia (July 15, 2012)
FHA is set to change the current controversial condominium rules that have greatlylimited the accessibility for the agency’s low-down-payment insured mortgages. The expected revisions will reduce the number of obstacles that have created the great reduction of FHA condo approval/recertification in the last year and a half.
“Christopher L. Gardner, managing member of FHA Pros, a national consulting firm based in Northridge that assists condo boards in obtaining FHA approvals, said barely 25% of all condo projects that are potentially eligible for FHA financing are now approved. That is despite the fact, Gardner said, that FHA financing is the No. 1 mortgage choice for half of all condo buyers and is crucial to many first-time and minority purchasers.”
Among the limitations that are under pressure to change are: non-owner occupancy, delinquent association fee payments, and nonresidential space usage. Now, the FHA is expected to clarify personal liability language and make other modifications. Cannot wait to see this come into fruition.
Distributed by Washington Post Writers Group.
Copyright © 2012, Los Angeles Times