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
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
http://renovationlendinginstitute.com/
- 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.)
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Tags: Distressed, FHA 203k, FHA Financing, HUD, Hud Consultant, REO
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
California Housing Market In Feb 2011: 56% Of Total Home Sales Are “Distressed” With REO Properties At 33%; Median Sales Price For REO Properties Is $199,000, Almost 50% Less Than “Non-Distressed” Home Prices
25 03 2011
Distressed housing market data:
- The total share of all distressed property types sold statewide increased in February to 56 percent
- This wa up from 54 percent in January and up from 55 percent in February 2010
- The total share of REO (real estate-owned) sales was 33 percent in February, up from 32 percent in December
- This was down from 36 percent in February 2010
- The total share of short sales increased to 23 percent in February, up from 22 percent in January
- This was up from 19 percent in February 2010
- The statewide median price of non-distressed properties sold in February was $370,000
- This was $95,000 or 34.5 percent higher than the short sale median price of $275,000 recorded in February
- The February2011 REO median price was $199,900 or 53% of median price of non-distressed homes
For more: http://www.car.org/newsstand/newsreleases/febpending/
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Tags: CA Assoc of Realtors, CAR, Distressed, Home Sales, Median Home Sales, REO
Categories : California, Defaults, Delinquencies, Federal Government, Financing, Foreclosures, Home Sales, Mortgage Industry, Realtors, The 203k Guy
National Median Home Prices Declined 3.7% In 2010 To $158,800 To Lowest Level Since April 2002; Distressed Homes Represent 37% Of Market
23 02 2011
- The national median home price fell 3.7 percent from a year-ago to $158,800, the lowest since April 2002
- Distressed homes edged up to a 37 percent market share in January from 36 percent in December; it was 38 percent in January 2010
- A NAR practitioner survey shows first-time buyers purchased 29 percent of homes in January, down from 33 percent in December and 40 percent in January 2010 when an extended tax credit was in place
- Investors accounted for 23 percent of purchases in January, up from 20 percent in December and 17 percent in January 2010; the balance of sales were to repeat buyers
- All-cash sales rose to 32 percent in January from 29 percent in December and 26 percent in January 2010
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Tags: Distressed, Home Sales, Home Value, Prices
Categories : Bank-Owned, Federal Government, Financing, Home Sales, Homes, Purchases
“Best Kept Secret” In Home Renovation: Bank-Owned Homes Are Often Distressed, Vandalized, And Old And In Need Of Homebuyers Who Use FHA 203k, HomePath Renovation And HomeStyle Financing (Video)
17 02 2011
CLICK ON PICTURE TO GO TO VIDEO. THE "RAVING LUNATIC" IN THIS VIDEO IS AN ACTOR.
Learn how to buy a home that’s been damaged by this raving lunatic. Many homes on the market are distressed, vandalized, old, vacant and need to be updated. Learn how to use a renovation loan like the FHA 203k, HomePath Renovation or the HomeStyle loan to buy a fixer upper property and make it your dream home.
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Tags: Bank-Owned, Distressed, FHA 203k, HomePath Renovation, HomeStyle, Renovation, REO, Videos
Categories : 203k, Bank-Owned, Fannie Mae, FHA, Financing, Freddie Mac, HomePath Renovation, Homes, HomeStyle, HUD, Mortgage Industry, Rehabs, Remodeling, REO Insider, REO's, The 203k Guy, Videos
Large Numbers Of Distressed Properties Will Create Increased Demand For “Larger Home Renovations And System Upgrades” And Renovation Financing
28 01 2011“…In the next five years, the focus of remodeling spending will shift from upper-end discretionary projects to replacements and systems upgrades…”
“The overall aging of homes and home owners eyeing the potential income gains is expected to provide a boost to the remodeling market, but the major drive leading the rebound in the remodeling industry is expected to come from distressed properties…”
Instead of reducing the price on a property, more lender servicers who manage aging REO portfolios are considering remodeling and raising the price, says Dale McPherson who has more than 30 years in the mortgage industry. The servicers are growing tired of watching investors repair and remodel these properties and sell them at a much higher price – now banks want to cash in, too.
Remodeling distressed properties has the potential to cut the cost on losses of the lender servicers as well as help home owners benefit from remodeling margins too.
For more: http://www.ibtimes.com/articles/105972/20110127/distressed-properties-spur-remodeling-rebound.htm
Comments : 1 Comment »
Tags: Distressed, Remodels, Renovation, Upgrades
Categories : 203k, FHA, Financing, Homes, Mortgage Industry, Refinance, Rehabs, Remodeling
FHA 203k Renovation Loan Is A Good Financing Option To Purchase Short Sales, Foreclosures And Distressed Properties In Need Of Repairs
29 06 2010“Right now, the minimum credit score is 620, which is still pretty liberal, and for the down payment, they’ll need to put down 3.5 percent of the sales price of the home plus the cost of repairs. … The interest rate could be higher (than a traditional mortgage) but just a touch; it’s at about 5.25 to 5.5 percent,” said Marsack of FHA loan terms that include a Department of Housing and Urban Development 203(k) loan to make repairs.
Skip Schenker "The 203k Guy" Toll Free 800 385-3503
After doing a bit of homework, researching the options available — short sales, foreclosures, the less common deed in lieu of foreclosures, and auctions — and enlisting professional help, all it takes is some gumption and seed money, or a good enough credit score, among other requirements, to apply for financing.
Many lenders will not finance a home that is in disrepair, said Jeff Marsack, a loan officer with Great Lakes Mortgage Funding in Sterling Heights, so in many cases, would-be investors will need to either seek Federal Housing Administration financing or have cash on hand to purchase the property.
The 203(k) loans — the Streamlined Limited Repair Program is for repairs that total under $35,000, and the Full 203(k) for repairs exceeding $35,000 — do have some restrictions: They’re for primary residences only and can not be used for investment properties; and the work, which must be done by licensed professionals, must be completed and inspected within six months of closing.
For more: http://www.candgnews.com/Homepage-Articles/2010/06-09-2010/Bank-owned-properties.asp
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Tags: 203k, Distressed, Financing, Purchase
Categories : 203k, Homes, Rehabs, The 203k Guy
Buying Home Fixers: Understanding FHA 203k Loans Helps Realtors Sell More Distressed Homes (Video)
14 05 2010Realtors sell more distressed homes when they understand the FHA 203(k). Call the “203k Guy” at 800-385-3503 to see if you can qualify for financing.
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Tags: Distressed, Fixers, Realtors, Rehabs, Videos
Categories : 203k, Financing, Homes, Rehabs, Videos
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