Mr. 2 Sell Homes

After Black Monday

Leo — Tue, 02 Jun 2009 00:37:36 +0000

After the massive loss of value in mortgage-backed securities last week, mortgage rates are higher and borrowers are frantically wondering what happened to their interest-rate commitments. Many lenders were simply not making new commitments at all and the market is still unsteady. One thing is for certain, it’s not what the doctor ordered for getting houses sold.

Bridge loan on tax credit

Leo — Sun, 31 May 2009 03:24:34 +0000

Big news for first-time home buyers who are looking forward to receiving a tax credit.

HUD announced this week that FHA-approved lenders can go ahead and provide bridge loans to those qualified for the tax credit. The bridge loan of all or any portion of their anticipated credit can be used to cover closing costs, buy down interest rates, or put down more than the minimum 3.5 percent at closing.

NOTE: The minimum 3.5 percent down payment is specifically NOT included in this list.

No cram-down but more hope

Leo — Thu, 07 May 2009 11:53:30 +0000

The Obama administration’s attempt to give bankruptcy judges the power to lower mortgage payments was rejected by the Senate last week. The House passed its version of the controversial “cram-down provision” in March, so now it will be discussed in joint session where it is expected to fail.

The Senate also voted to expand eligibility requirements for the Hope for Homeowners program, which encourages lenders to convert adjustable mortgage interest rates to 30-year fixed rates backed by the FHA if the homeowner agrees to pay an insurance premium.

Although Congress planned to aid 400,000 troubled homeowners when Hope For Homeowners was established last year, due to its strict eligibility requirements only one borrower has completed the refinancing process and only 51 more are in the process, according to statistics published last week.

Turnaround time?

Leo — Tue, 05 May 2009 16:07:31 +0000

Is it the turnaround we’ve all been waiting for? NAR announced that March pending contracts on existing home sales rose by 3.2%. This increase is explained, at least partially, by low interest rates and the tax credit for first-time home buyers. These sales should close in April and May, which means that we should be seeing an increase in actual sales reported soon. Yes!

Freddie Mac suicide

Leo — Tue, 28 Apr 2009 19:18:57 +0000

Well, it’s been a week now since Freddie Mac’s Chief Financial Officer, David Kellermann, was found dead in the basement of his home by his wife early in the morning on April 22. David was hanging by a piece of exercise equipment, an apparent suicide.

Kellermann was 41 years old and over the last 16 years he had worked his way up from financial analyst and auditor to the postion of Chief Financial Officer.

Our thoughts and prayers go out to David’s family, friends and co-workers.

And our thoughts and prayers also go out to everyone who is deeply concerned, as was David, about the wave of mortgage foreclosures in this country.

Gutter talk

Leo — Thu, 09 Apr 2009 18:13:38 +0000

Installing and maintaining gutters on your homes and commercial buildings assures that you’ll drain water off your roofs and also away from your foundations. We don’t always think about how water damages foundations.

Keeping your gutters free of debris that clogs downspouts as well as the gutters themselves is one good precaution against costly foundation repairs in areas prone to flooding and freezing.

Bank Walkaways

Leo — Tue, 07 Apr 2009 03:30:27 +0000

What happens at the end of the foreclosure process? Well, usually a bank takes possesssion of the property and gets a property manager to repair, rent and eventually sell it. But what happens if that doesn’t happen?

It’s been reported that banks in NY, MO and FL have begun to walk away from properties that cost more to maintain than they are worth. Yes, banks are simply refusing to re-take ownership, which means that the foreclosed homeowner is still in title and still responsible for taxes and maintenance, even though there may no longer be mortgage debt because no lender steps up to demand payment.

Sounds like the making of a great deal if a buyer can get clear title…

Investors hold their own

Leo — Mon, 06 Apr 2009 23:04:58 +0000

People must be sheltering the money they have taken out of the stock market in residential real estate because the investor’s share of the real estate market reported in 2008 was 21%, the same percentage as was reported in 2007.

Over half of investors in 2008 chose a property within 20 miles of their own home and two-thirds chose detached single-family homes. The typical investor had a median age of 47 and a median income of $85,000.

So these are not high-rollers or foreigners we’re seeing, these are average Americans making the most of great buying opportunities.

Cash for first-timers?

Leo — Mon, 06 Apr 2009 22:43:28 +0000

Florida is considering advancing $8,000 cash to first time homebuyers in order to relieve that state’s backlog of existing houses for sale, which backlog is estimated to be nearly two years’ supply. The cash advance would be repaid when homebuyers file their tax returns and receive the federal tax credit. Does anybody else think this might be a little risky?

Hope springs eternal

Leo — Mon, 23 Mar 2009 23:08:30 +0000

Surprise…used home sales increased in February! Sales of existing homes grew 5.1% to an annualized rate of 4.72 million, the largest monthly increase in sales since July 2003. While sales are still comparatively slow, the market may finally be coming back to life because prices are so low, prices which are are expected to keep falling throughout the calendar year.

And we have to remember, the majority of homes in the foreclosure funnel are not yet for sale, credit is nearly non-existent and unemployment is rampant. Not a formula for great hope…

About half of the buyers in February 2009 were first-time homebuyers jumping in to snap up a good deal. The median sales price of $165,400 is down more than 15% from the median sales price of $195,800 a year ago.

Hope springs eternal.