Housing Market Recovery Dependent On Reduction Of “Oversupply Of Distressed Homes” (Video)
10 09 2011Comments : Leave a Comment »
Tags: Bank-Owned, Distressed, Foreclosures, Home Sales, Homes, Videos
Categories : Bank-Owned, Defaults, Delinquencies, Financing, Foreclosures, Housing Market, Investors, Mortgage Industry, Purchases
Foreign National Mortgage Programs Allow For Non-Resident And Non-U.S. Citizens To Purchase Owner-Occupied And Second Homes With Condos Included
7 09 2011
http://renovationlendinginstitute.com/
Foreign National Loan Program includes Non-Resident and Non-U.S. Citizens borrowing for second homes, extended to all countries, not just Canada. The following are required guidelines:
- Maximum loan amount $417,000
- 30-year fixed rate mortgage
- 30% down payment required from borrower’s own funds and must have 6 months reserves in a US bank before closing
- MAX LTV 70% - NO GIFTS
- Must have 24 months of credit history
- Income amounts must be converted into US dollars
- Credit report must contain four (4) trade lines
- 700 credit score minimum required
- 36/45 DTI
- Single family homes and condos allowed
- Property must be in an area where second homes are common and customary
- Can not own additional US property
- Borrowers with diplomatic immunity are ineligible
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Tags: Foreign Nationals, Mortgages, Non-Residents, Underwriting
Categories : Housing Market, Mortgage Industry, Purchases, Underwriting
S&P/Case-Shiller Home Price Index For June 2011 Shows 3.6% Increase In 2nd Quarter But Is Down 5.9% In Past 12 Months
30 08 2011
Data through June 2011, released today by S&P Indices for its S&P/Case-Shiller Home Price Indices...show that the U.S. National Home Price Index increased by 3.6% in the second quarter of 2011, after having fallen 4.1% in the first quarter of 2011. With the second quarter's data, the National Index recovered from its first quarter low, but still posted an annual decline of 5.9% versus the second quarter of 2010. Nationally, home prices are back to their early 2003 levels...As of June 2011, 19 of the 20 MSAs covered by S&P/Case-Shiller Home Price Indices and both monthly composites were up versus May -- Portland was flat. However, they were all down compared to June 2010.
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Tags: Charts, Home Prices, S&P Case/Schiller Index
Categories : Economic Statistics, Home Sales, Home Values, Housing Market, Purchases, Statistics
Short Sales Process Has Been Aided By 45-Day Requirement For Banks To Respond To Short Sale Requests; Sellers Eligible For Up To $3,000 In Aid (Video)
22 08 2011The short sale system has been simplified by the Obama Administration. The Treasury Department unveiled rules requiring banks to respond to homeowner short sale requests within 45 days. Short sale sellers are also eligible for up to $3,000 in aid to move. By some estimates up to 275,000 foreclosures could be prevented by these efforts.
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Tags: Banks, Foreclosures, Obama Administration, Selling Homes, Short Sales
Categories : Bank-Owned, Delinquencies, Economic Statistics, Federal Government, Foreclosures, Housing Market, Mortgage Industry, Purchases, Short Sales, Videos
Homebuyers Should Not Avoid Short Sales But Have Patience And Few Contingencies With Purchase Financing
19 08 2011http://renovationlendinginstitute.com/
- Typically with a short sale, the homeowner is underwater and has experienced a financial hardship such as a job loss. To limit the damage to his credit rating, a homeowner may attempt to work with his lender to negotiate a short sale. Not only must the bank approve of the short sale itself, it also must agree to the price, since the bank will accept the difference as a loss.
- Unlike foreclosures, in which the owner has walked away and the bank is looking to unload a vacant – and sometimes vandalized – property, a short sale isn’t a distressed home that will sell at an extremely low price. According to data from RealtyTrac, short sales typically sold for nearly 10 percent less than the market price in the first quarter of 2011, whereas foreclosures sold at an average discount of 35 percent.
- Home buyers wanting to purchase a short sale must have patience. In most cases, when a buyer makes an offer on a house, he receives a response from the seller within a few days, or even hours. With a short sale, the bank must approve of the sale and bank representatives are overloaded with cases. It may take 30 days or longer for a buyer to receive a response from the bank.
- In a traditional real estate transaction, it is common for a home buyer who currently owns his home to make his offer contingent on selling his current home. In short sales, most banks will not approve an offer that is contingent on the buyer selling his current home, as too many things can go wrong.
- Banks also typically won’t consider short-sale offers that have inspection contingencies in them, so buyers can either do an inspection prior to making an offer or forego an inspection altogether.
- Even with the challenges associated with short sales, buyers should not avoid these transactions.
For more: http://realestate.aol.com/blog/2011/08/11/short-sales-are-they-worth-the-trouble/
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Tags: Banks, First-Time Homebuyers, Homes, Purchases, Short Sales
Categories : Financing, Foreclosures, Housing Market, Mortgage Industry, Purchases, REO's, Short Sales, Statistics
Housing Market Remains Depressed As Poor U.S. Economic Health Reduces Homeowner Expectations Of New Home Purchases Retaining Value
18 08 2011http://renovationlendinginstitute.com/
“…The employed remain worried about their own job security, which they see tied to overall U.S. economic health…”
- 41% of respondents in the Housing Market Index indicated that they had lost sales contracts due to buyers’ inability to sell their current homes
- This is an example of the unemployed impact on the broader marketplace, where it impedes the fluid economic progression of the employed, or the healthy market participants
- The traditional argument holds that although the old home must be sold cheaper than preferable, a new home is also acquired at better value
- These buyers worry about the future of the real estate market, specifically the risk of losing value post closing
For more: http://seekingalpha.com/article/288177-housing-insight-from-home-builders
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Tags: Home Prices, Home Values, Homeowners, Housing Market, Statistics
Categories : California, Economic Statistics, Home Values, Housing Market, Mortgage Industry, Purchases, Statistics, Surveys
Fannie Mae Survey Shows More Americans Expect Home Prices To Decline In Next Year As Optimism Fades
9 08 2011
SURVEY HIGHLIGHTS
Homeownership and Renting
- On average and consistent with June, Americans believe home prices will decline slightly over the next year.
- Only 11 percent of respondents say it is a good time to sell one’s home (similar to May and June 2011 survey results).
- Despite Americans’ expectations that rental prices will go up in the next 12 months, fewer Americans say they would buy their next home (down 5 percentage points) and more of those surveyed say they would rent (up by 3 percentage points).
Household Finances
- For the third month in a row, optimism about personal finances has declined, with 35 percent of respondents expecting their finances to get better over the next year (down from 40 percent in April).
- Consistent with June, 20 percent of respondents report significantly higher household incomes over the past 12 months, while 17 percent report significantly lower incomes.
- As compared to past months, four times as many Americans report significantly higher household expenses (up from 37 percent in June to 40 percent in July) as significantly lower expenses (10 percent).
For more: http://www.fanniemae.com/media/pdf/2011/nhs-monthly-data-082011.pdf
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Tags: Fanne Mae, Home Ownership, Home Prices, Housing Values, Surveys
Categories : Economic Statistics, Fannie Mae, Housing Market, Mortgage Industry, Purchases, Statistics, Surveys
Morgan Stanley Housing Report Sees Restrictive Lending Limiting Owner-Occupied Purchases, Rental Costs Rising As Home “Effective Home Ownership Rate” May Drop Below 60%
8 08 2011http://renovationlendinginstitute.com/
- There are about 2.2 million vacant homes available for sale in the U.S.
- 7.5 million homes are facing foreclosure that would add to the excess housing supply
- This will continue to cause home values to drop further
- The homeownership rate fell to 65.9 percent as of June 30, the lowest level in 13 years
- Home ownership peaked at 69.2 percent in June 2004, the Commerce Department reported July 29
- The effective homeownership rate would drop below 60 percent if delinquent buyers who are expected to lose their houses to foreclosure are removed from the total
- “Mortgage credit remains tight, making home purchases more difficult, while rental demand is accelerating, causing rents to rise quickly,”
- “If nothing is done soon, we will find ourselves in a situation where owner-occupied housing becomes unobtainable due to lack of credit, while rental housing becomes unobtainable due to rising costs.”
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Tags: Home Ownership, Home Value, Housing Market, Mortgage Loans, Renters, Reports
Categories : Delinquencies, Economic Statistics, Home Sales, Home Values, Housing Market, Mortgage Industry, Purchases, Short Sales, Statistics, Underwriting
S&P/Case-Shiller Home Price Index Shows Slight Increase In May 2011 With 4.51% Lower Values In Past 12 Months
26 07 2011
- The current Radar Logic 25 MSA Composite data reported on residential real estate transactions (condos, multi and single family homes) that settled as late as May 23 and averaged for the month. The data indicates that with increasing transactions in the spring has come increasing prices (the typical trend). The national index increased 1.14% since April but still remains 5.89% below the level seen in May 2010.
- S&P/CaseShiller home price index for the month of May comes in at 139.87, vs. the economist estimate of 139.80 and compared to a revised reading of 138.46 for the month of April.
- The index fell 0.05% on a month-over-month basis and 4.51% from the same month last year.
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Tags: Home Prices, Home Values, Prices, S&P Case/Schiller Index, S&P/Case-Shiller
Categories : Economic Statistics, Home Sales, Home Values, Homes, Housing Market, Purchases, Statistics, Surveys
Fannie Mae “June 2011 Monthly National Housing Survey” Cites Slow Absorbtion Of “Excess Supply Of Housing” As Limiting Housing Recovery And Economic Recovery
22 07 2011
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Tags: Economy, Fannie Mae, Housing Market, Housing Survey
Categories : Economic Statistics, Fannie Mae, Home Sales, Housing Market, Purchases, Statistics
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