Housing Market Update: Signs Of A “Stabilization In Home Prices” Can Be Seen In Latest Statistics But Homebuyers Should Still Look For Value

6 06 2011

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  • Mortgage rates are at 4.55% for the week ending June 2, according to Freddie Mac, near 50-year lows
  • The ratio of home prices to income is now 20.9% lower than the 15-year average through 2010
  • They are 12.5% lower than the 1989-2004 average, making homes very affordable historically
  • The current glut of homes has created a buyer’s market with about 15 million vacant homes in the U.S. last year
  • This is 3.1 million more than normal
  • But home prices might be entering a stabilization period
  • Moody’s Analytics predicts that the number of distressed sales will begin to fall in 2013
  • New home building is at a virtual standstill, so the supply overhang isn’t likely to get much worse
  • “Household formation”—the number of new households each year—is on the rise, and could start reducing the housing glut in coming years

For more:  http://online.wsj.com/article/SB10001424052702304563104576361522020024248.html


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Categories : 203k, Defaults, Delinquencies, Economic Statistics, Foreclosures, Housing Market, Mortgage Industry, Purchases, Statistics, The 203k Guy

Home Prices Make New “Post Bubble” Lows As “Four-Year” Supply Of “Foreclosure Inventory” May Further Erode Home Values; Poor Condition Of REO’s Make Renovation Financing Critical

1 06 2011

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  • S&P Case-Schiller reported that house prices have hit a new post-bubble low, down almost a third from their 2006 peak
  • Pending home sales, according to the National Association of Realtors, fell by 27% in April 2011 from previous year
  • This represented an 11.6 percent fall for the month
  • Many buyers are swamped by negative equity in their current house and those who are not are reluctant to commit their own capital to a falling market
  • Tighter underwriting standards would force current homeowners to pay existing lender to cover the equity shortfall and then pay a larger down-payment for the new house
  • Continued sales of foreclosed homes is one of the prime forces driving prices lower
  • Banks are more willing to cut prices to get a sale done than homeowners
  • Many foreclosures are in poor condition, requiring further discounts to entice buyers
  • The foreclosure system is overwhelmed, even despite a drop in new foreclosure starts and delinquencies
  • Lawsuits over improper foreclosure procedures has slowed the process with banks deliberately holding properties back so as not to further erode prices
  • At the current rate of sales it will take more than four years for banks to sell off their existing inventory of foreclosed or seriously delinquent houses
  • More than 40 percent of delinquent mortgages have been delinquent for more than a year, according to Lender Processing Services

For more:  http://blogs.reuters.com/jamessaft/2011/05/31/u-s-housings-sinking-feeling/


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Categories : Bank-Owned, Defaults, Delinquencies, Foreclosures, Homes, Housing Market, Mortgage Industry, Purchases, Realtors, Statistics

Buying Foreclosed Homes: FHA 203k Renovation Loans Are The Only Financing Option For Owner-Occupant Homebuyers Who Need To Make Repairs To A Distressed Property

20 05 2011

 

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  • FORECLOSED homes have maintenance issues that have been ignored
  • Lenders turn off the water and power to cut the cost of letting the place sit
  • Most purchase loans cannot fund homes that need repairs or have major deferred maintenance
  • Distressed properties are sold at a discount and make up 40 percent of resales in currently
  • This is why “all-cash sales” are at their highest level ever — 35 percent of total sales, according to the Realtors
  • Most cash buyers are often investors who don’t plan to live in the home
  • For would-be owner-occupants without cash, the federally insured FHA 203k loan is the main loan
  • Borrowers can roll projected rehab costs into the loan
  • Most R.E.O.’s are as is, and the heat, plumbing and electric are turned off frequently, a 203(k) loan is necessary to cover the borrower and the lender
  • Buyers must use the services of an independent consultant certified by the Federal Housing Administration to review contractor cost estimates and architectural plans
  • The F.H.A. appraiser takes the consultant’s report into account when reviewing a property and determining how big the loan can be
  • Not all R.E.O. properties are eligible, such as a partially built house that has never had a certificate of occupancy
  • F.H.A-certified consultants cost $500 to $1,200, depending on the extent of the repairs and the number of units in a property
  • The interest rate on a 203(k) loan is about a quarter of a percentage point higher than on a standard F.H.A.-insured loan
  • The buyer also can expect to pay at least 1 point
  • The down payment may be as low as 3.5 percent, and loan limits apply
  • High-cost area F.H.A. loans limits are currently $729,750. (Energy-efficient rehabs may be eligible for more.)

For more:  http://www.nytimes.com/2011/05/15/realestate/financing-foreclosed-homes-mortgages.html?_r=1&ref=realestate


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Categories : 203k, Bank-Owned, Contractors, Federal Government, FHA, Financing, Foreclosures, Homes, Housing Market, HUD, Mortgage Industry, Purchases, Rehabs, Remodeling, REO Insider, REO's, The 203k Guy

The “Looming” Shadow Inventory In USA’s Top Ten “Larger Counties” Will Add A “Glut Of Homes” Listed For Sale As 98% Of Delinquent Homeowners Will Be Forced Into Foreclosure Or Short Sales; 30% Of “Seriously Delinquent Homeowners” Have Not Made A Payment In 24 Months

6 05 2011

 

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Ten Larger Counties Distressed Mortgage Percentages – 3d Quarter 2010
COUNTY Active Loan Count 90+ Days Delinquent % Delinquent Defaults % Defaults Distressed Total
             
Miami-Dade 366,775 26,735 7.29% 64,708 17.64% 24.9%
Broward (Ft. Lauderdale) 328,721 21,939 6.67% 44,251 13.46% 20.1%
Orange (Orlando) 204,944 13,020 6.35% 24,839 12.12% 18.5%
Clark (Las Vegas) 360,192 32,932 9.14% 32,388 8.99% 18.1%
Riverside (CA) 368,432 32,622 8.85% 17,965 4.88% 13.7%
Prince George’s (MD) 148,228 13,800 9.31% 6,367 4.30% 13.6%
San Bernardino (CA) 315,992 27,051 8.56% 14,980 4.74% 13.3%
San Joaquin (Stockton, CA) 105,519 8,887 8.42% 5,021 4.76% 13.2%
Kern (Bakersfield, CA) 114,247 8,031 7.03% 4,929 4.31% 11.3%
Maricopa (Phoenix) 715,944 43,164 6.03% 31,807 4.44% 10.5%

Source: CoreLogic

  • The ten large counties with the highest total percentage of first liens which were either seriously delinquent or had been placed into default
  • These are properties which had not yet been foreclosed and repossessed
  • Historical data suggests that 98% of these properties will eventually be forced onto the market as either foreclosures or short sales
  • The total number of seriously delinquent and defaulted first liens in these ten counties is somewhat higher because database does not include all first liens
  • This represents the so-called “shadow inventory” of properties that will come onto the market in the not-too-distant future and will add to the glut of MLS listings
  • In February 2011, according to Lender Processing Services, an incredible 30% of seriously delinquent homeowners in default had not made a mortgage payment in at least 24 months
  • In January 2009, that number was only 8%

For more:  http://seekingalpha.com/article/268087-shadow-inventory-threatens-all-major-metro-housing-markets


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Categories : Bank-Owned, Defaults, Delinquencies, Foreclosures, Home Sales, Mortgage Industry

“Short Sale Or Foreclosure”: Homeowners Will See FICO Scores Fall To 570-595 Range With Either Strategy; Credit Scores Will Take Up To 7 Years To Increase Back To Previous Levels

25 04 2011

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  • FICO will not be higher if homeowners choose “short sale” over foreclosures
  • Mortgage delinquency data from the nation’s three major credit bureaus was used to make this decision
  • Potential borrowers with short-sales will have FICO scores in the 575-to-595 range at one credit bureau
  • This is  the same as having a foreclosure on their credit report
  • FICO scores will be either in the 570-to-590 range or the 620-to-640 range at the two other credit bureaus
  • Short sales and foreclosures will remain on credit reports for three-to-seven year credit restoration

For more:  http://www.housingwire.com/2011/04/22/short-sales-and-foreclosures-equally-degrade-fico-scores


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Categories : Credit Reports, Defaults, Delinquencies, Financing, Foreclosures, Mortgage Industry, Short Sales, Underwriting

“Interactive Map” Shows High Foreclosure Rates In Arizona, California And Nevada Counties As Compared To National Foreclosure Rates

18 04 2011

The fallout from the recession has cut deeply into the housing security, employment and income of many Americans. But some parts of the country are clearly faring better than others. The interactive map below shows  foreclosure rates by county. The darker the color the higher the rate of foreclosures.

CLICK ON MAP TO USE "INTERACTIVE" FORECLOSURE RATE BY COUNTY


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Is It Time To Buy A Home?: “Home Price-To-Rent Ratio” Indicator Shows It Is A Favorable Time To Purchase A Home In Most Areas But Housing Prices Still High Compared To Historical Levels

18 04 2011

 

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  • The price-to-rent ratio is the cost of the median home divided by a year’s median rent
  • When the ratio is under 20, buying may make more sense than renting
  • The ratio has consistently been higher in some places and lower in others
  • A ratio that’s still higher than historic norms suggests prices may have further to fall

Metropolitan area

Peak of
the bubble
(Q1 2006)

Current
(Q4 2010)

Long-term
average
(1989-2003)
U.S. 18.46 11.34 9.56
Atlanta,GA 19.04 14.69 13.42
Austin,TX 20.00 22.44 15.79
Boston,MA 22.98 18.72 15.37
Baltimore,MD 21.05 15.55 11.30
Charlotte,NC 22.67 21.75 16.17
Chicago,IL 23.39 15.23 16.19
Cincinnati,OH 18.00 15.30 14.58
Cleveland,OH 16.19 13.13 13.24
Columbus,OH 20.88 17.17 15.68
Dallas-Fort Worth,TX 16.89 16.46 15.58
Denver,CO 25.34 20.93 16.30
Detroit,MI 18.37 9.94 13.42
East Bay,CA 53.49 30.36 29.08
Fort Lauderdale,FL 28.70 15.43 13.36
Hartford,CT 20.48 18.59 13.51
Honolulu,HI 36.69 33.16 23.02
Houston,TX 15.94 16.83 13.34
Indianapolis,IN 16.73 16.24 13.78
Inland Empire,CA 29.07 13.66 16.60
Jacksonville,CA 21.43 13.88 12.12
Kansas City,MO 17.88 16.48 13.62
Las Vegas,NV 30.62 13.30 14.96
Long Island,NY 24.91 19.75 12.08
Los Angeles,CA 26.41 15.96 12.57
Memphis,TN 19.38 15.64 15.75
Miami,FL 30.11 15.28 12.19
Milwaukee,WI 23.78 20.82 15.03
Minneapolis,MN 21.69 14.05 13.48
Nashville,TN 23.71 22.19 16.99
New Orleans,LA 22.14 16.49 13.16
New York,NY 18.64 14.07 9.42
Norfolk,VA 24.65 21.71 16.52
North -Central New Jersey 30.63 23.11 17.46
Oklahoma City,OK 13.53 14.26 11.33
Orange County,CA 44.00 28.69 20.54
Orlando,FL 24.52 12.02 12.49
Palm Beach County,FL 27.80 13.38 13.06
Philadelphia,PA 17.00 13.38 9.94
Phoenix,AZ 26.36 12.06 12.07
Pittsburgh,PA 11.94 11.64 9.85
Portland,OR 32.07 24.17 17.36
Raleigh,NC 22.17 22.85 16.79
Richmond,VA 22.77 21.29 14.93
Sacramento,CA 30.28 14.99 15.59
Salt Lake City,UT 20.30 19.24 14.53
San Antonio,TX 15.14 16.47 12.63
San Diego,CA 36.66 22.55 18.18
San Francisco,CA 43.15 29.32 24.41
San Jose,CA 46.43 29.95 23.33
Seattle,WA 30.16 22.69 16.84
Bridgeport,CT 24.85 20.57 14.92
St. Louis,MO 17.78 15.92 13.02
Tampa,FL 25.21 13.37 13.31
Washington- Northern Virginia -Maryland 27.41 17.35 13.00

Source: Fiserv, Federal Housing Finance Agency, Property Portfolio Research, Moody’s Analytics


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Categories : Federal Government, Financing, First-Time Homebuyer, Foreclosures, Home Sales, Homes, Housing Market, Mortgage Industry, National Public Radio, Purchases

“Poorly Maintained Bank-Owned Homes” Have “Destroyed Home Values In Minority Neighborhoods” Disproportionately According To Report On “Lender Discrimination In Treatment Of Foreclosed Homes” By National Fair Housing Alliance (NFHA)

14 04 2011

CLICK ON "NEIGHBORHOOD" TO VIEW REPORT


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Categories : Asset Managers, Bank-Owned, Defaults, Delinquencies, Economic Statistics, Federal Government, FHA, Foreclosures, Housing Market, HUD, Mortgage Industry, Purchases, Realtors, REO Insider, REO's, Reports

Nevada, Arizona And California Had Nation’s Highest Foreclosure Rates In 1st Quarter 2011 As Foreclosure Filings Drop Due To “Robo-Signing Scandal”; Severe Mortgage Delinquencies Increase

14 04 2011

 

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  • Nevada, Arizona and California were 1-2-3 in the 1st quarter and March 2011 as the states with the highest foreclosure rates
  • The worst metropolitan area remains Las Vegas, where one of every 31 homes had a foreclosure filing during the quarter, about six times the national norm
  • Modesto, Calif. (one in 46), Stockton, Calif. (one in 47), Vallejo. Calif., and Phoenix (both one in 48) filled out the top five
  • The foreclosure crisis seems to be easing as foreclosure notices filed during the first three months of 2011 fell 27% compared with 2010
  • Only 681,000 properties (1 out 191)  received a notice of default, a scheduled auction or a foreclosure sale
  • Nationally, 215,046 borrowers lost their homes, down 17% year-over-year, a 3-year low
  • Sales of existing and new homes were very weak and home prices are still sliding
  • However, the foreclosure improvement has been artificial, fueled by banks reacting to the “robo-signing” scandal
  • The banks have cut back on filings until they can clean up their procedures
  • It is estimated that without the cutback there would have been 900,000 filings during the quarter instead of 681,000
  • This would have resulted in 280,000 to 300,000 bank repossessions instead of 215,000
  • And the banks are modifying fewer loans to make them more affordable
  • Hope Now, a coalition of servicers, community groups and mortgage investors, reported only 87,000 loans in February were modified, compared with 110,000 in December 2010
  • The one bright spot is the month-over-month drops in both new foreclosures and in the number of 60 days late payments
  • But 90-day or greater delinquencies is increasing, with these borrowers falling 527 days past due, on average
  • In New York and New Jersey it is taking more than 800 days from notice of default to a sheriff’s sale

For more:  http://finance.yahoo.com/news/Foreclosures-continue-to-cnnm-3667179016.html?x=0&sec=topStories&pos=1&asset=&ccode=


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Categories : Defaults, Delinquencies, Fannie Mae, Federal Government, FHA, Financing, Foreclosures, Freddie Mac, Housing Market, Mortgage Industry

FHA 203k Renovation Loans: Skip Schenker’s “HOT Dog Of The Week” Visits A Garden Grove, CA Foreclosure Home In Need Of Extensive Improvements And Remodeling (Video)

11 04 2011

We help you turn a bank owned foreclosure home from a dog into a dream home with an FHA 203k renovation home loan. Remodel any home with just 3.5% down and include money for all fix up costs including a new kitchen, bathrooms, flooring, paint , carpet, windows, doors, new roof, HVAC system. Call Skip Schenker at 800-385-3503 to learn how you can get government insured money to remodel your current or next home.


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Categories : 203k, FHA, Financing, Foreclosures, Homes, Hot...Dog of the Week, Housing Market, Mortgage Industry, Purchases, Rehabs, Remodeling, The 203k Guy, Videos

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