Lower priced homes have been harder hit than higher priced homes in this housing market, according to a study by Harvard University’s Joint Center for Housing Studies.
High-priced homes have lost 38% of their value since values peaked in 2006. Lower priced homes, on the other hand, have dropped 63% since peaking in 2007.
Why such a difference? It’s because lower priced homes appreciated much more before reaching their peak and therefore had further to drop than higher priced homes.
For example, in San Francisco, lower end homes nearly tripled in price before peaking. High-end homes, meanwhile, did not even double before reaching its peak. McCue attributes this partially to lenders making more loans available to lower income households during the housing peak days, which increased demand and prices.
Foreclosures have also plagued low-income areas, more so than higher income areas, according to the study. Foreclosures in low-income neighborhoods are more than double that of high-income neighborhoods, according to the Joint Center for Housing Studies.
Friday, June 10, 2011
Fannie Revamps Rules on Delinquent Loans
Fannie Mae announced this week new rules that will require mortgage servicers to act more quickly and consistently in helping troubled home owners avoid foreclosure.
Fannie told servicers they must strive to build a “strong customer service relationship,” better understand why the borrower is missing payments, and educate them on ways to prevent foreclosure.
"We want home owners to be able to understand their options when facing foreclosure, and we want servicers to reach home owners early in the process, communicate frequently and clearly, and help home owners avoid foreclosure," says Jeff Hayward, senior vice president of Fannie Mae’s national servicing organization.
Also among the revamped guidelines, Fannie told servicers they will be required to contact home owners verbally and in writing within 120 days after a loan first becomes delinquent. They will need to try to complete a loan modification or other option that keeps the borrower in their home or helps the borrower avoid the foreclosure process.
If foreclosure is unavoidable, servicers will need to follow a clear timeline and must begin the foreclosure process once a loan has been delinquent for more than 120 days. Servicers also must make it clear when a property in the foreclosure process will be sold.
Fannie told servicers they must strive to build a “strong customer service relationship,” better understand why the borrower is missing payments, and educate them on ways to prevent foreclosure.
"We want home owners to be able to understand their options when facing foreclosure, and we want servicers to reach home owners early in the process, communicate frequently and clearly, and help home owners avoid foreclosure," says Jeff Hayward, senior vice president of Fannie Mae’s national servicing organization.
Also among the revamped guidelines, Fannie told servicers they will be required to contact home owners verbally and in writing within 120 days after a loan first becomes delinquent. They will need to try to complete a loan modification or other option that keeps the borrower in their home or helps the borrower avoid the foreclosure process.
If foreclosure is unavoidable, servicers will need to follow a clear timeline and must begin the foreclosure process once a loan has been delinquent for more than 120 days. Servicers also must make it clear when a property in the foreclosure process will be sold.
3 Seller Tips to Stay Ahead of Your Competition
Pricing a home competitively from the beginning is important. "Your largest number of showings will occur in the first two to three weeks. The (multiple listing service) systems and the Internet tend to drive the majority of showings. That’s why real estate experts stress that it’s important sellers get a competitive, realistic price from the beginning.
Consider sweetening the deal. Sellers may be able to lure more buyers by offering some extra incentives, whether that’s leaving some upplinces, dryer, washing machine, flat screen TV, paying closing costs, buying down the rate, home warranty etc. The better your offer, the quicker you can sell.
Make sure the home is show-ready and in move-in condition. In smaller homes, for example, clutter can mean the difference between cozy and cramped, experts say. Be sure the sellers keep homes clean and clear of clutter, particularly kitchen and bathroom countertops that tend to accumulate personal items that can hamper showing the home’s features. Also make sure that you have curb appeal, if not buyers won't be interested in looking inside your home, if they drive by and your exterior is not appealing.
However, make sure sellers don’t go to the other extreme and clear away too much.
"Don't neutralize it so that it's sterile," says Pat Vredevoogd Combs, vice president of Coldwell Banker AJS Schmidt in Grand Rapids, Mich., adding that small mementos and photos help make a house feel like a home.
Real estate experts also stress the importance of sellers’ getting a home in move-in condition--such as fixing all repairs and replacements--before it is even listed.
"From a presentation standpoint, you want them to feel it's turnkey -- ready to go," says Mark Ramsey, broker with the Ramsey Group/Keller Williams Realty in Charlotte, N.C. "Because your competition is doing that. In this market, it's not just a price war but a beauty contest at the same time."
Consider sweetening the deal. Sellers may be able to lure more buyers by offering some extra incentives, whether that’s leaving some upplinces, dryer, washing machine, flat screen TV, paying closing costs, buying down the rate, home warranty etc. The better your offer, the quicker you can sell.
Make sure the home is show-ready and in move-in condition. In smaller homes, for example, clutter can mean the difference between cozy and cramped, experts say. Be sure the sellers keep homes clean and clear of clutter, particularly kitchen and bathroom countertops that tend to accumulate personal items that can hamper showing the home’s features. Also make sure that you have curb appeal, if not buyers won't be interested in looking inside your home, if they drive by and your exterior is not appealing.
However, make sure sellers don’t go to the other extreme and clear away too much.
"Don't neutralize it so that it's sterile," says Pat Vredevoogd Combs, vice president of Coldwell Banker AJS Schmidt in Grand Rapids, Mich., adding that small mementos and photos help make a house feel like a home.
Real estate experts also stress the importance of sellers’ getting a home in move-in condition--such as fixing all repairs and replacements--before it is even listed.
"From a presentation standpoint, you want them to feel it's turnkey -- ready to go," says Mark Ramsey, broker with the Ramsey Group/Keller Williams Realty in Charlotte, N.C. "Because your competition is doing that. In this market, it's not just a price war but a beauty contest at the same time."
Friday, June 3, 2011
Does Your Lender Own Your Mortgage?
Delinquent home owners are finding a wild-card in saving their home from foreclosure. In court, more home owners are successfully arguing that their mortgage companies can’t prove they own the loan and don’t have the right to foreclose on them.
The Wall Street Journal reports: “In some cases, borrowers are showing courts that banks failed to properly assign ownership of mortgages after they were pooled into mortgage-backed securities. In other cases, borrowers say that lenders backdated or fabricated documents to fix those errors.”
In a few cases, home owners have even had their foreclosures reversed as courts blame lenders’ sloppy paperwork.
Source: “Banks Hit Hurdle to Foreclosures,” The Wall Street Journal (June 1, 2011)
The Wall Street Journal reports: “In some cases, borrowers are showing courts that banks failed to properly assign ownership of mortgages after they were pooled into mortgage-backed securities. In other cases, borrowers say that lenders backdated or fabricated documents to fix those errors.”
In a few cases, home owners have even had their foreclosures reversed as courts blame lenders’ sloppy paperwork.
Source: “Banks Hit Hurdle to Foreclosures,” The Wall Street Journal (June 1, 2011)
Thursday, June 2, 2011
Tiger still highest-paid athlete
The top 10:
1. Tiger Woods, $75 Million
2. Kobe Bryant, $53 Million
3. LeBron James, $48 Million
4. Roger Federer, $47 Million
5. Phil Mickelson, $46.5 Million
6. David Beckham, $40 Million
7. Cristiano Ronaldo, $38 Million
8. Alex Rodriguez, $35 Million
9. Michael Schumacher, $34 Million
10. Lionel Messi, $32.3 Million
•See more athletes
Full list: The world’s highest-paid athletes
1. Tiger Woods, $75 Million
2. Kobe Bryant, $53 Million
3. LeBron James, $48 Million
4. Roger Federer, $47 Million
5. Phil Mickelson, $46.5 Million
6. David Beckham, $40 Million
7. Cristiano Ronaldo, $38 Million
8. Alex Rodriguez, $35 Million
9. Michael Schumacher, $34 Million
10. Lionel Messi, $32.3 Million
•See more athletes
Full list: The world’s highest-paid athletes
Tuesday, May 31, 2011
Credit Repair After a Short Sale
How to Repair Your Credit After a Short Sale or Foreclosure
If you have to short sale your home, have lost your job, couldn't afford your mortgage, or decided that your mortgage was so far underwater that you stopped paying, then we have a solution for you. I recently met a Law Firm in San Diego who can remove negative items on your credit. It is obvious that with the amount of short sales and foreclosures that banks have to handle they do make mistake when they report your foreclosure or short sale on your credit file.
If you have to short sale your home, have lost your job, couldn't afford your mortgage, or decided that your mortgage was so far underwater that you stopped paying, then we have a solution for you. I recently met a Law Firm in San Diego who can remove negative items on your credit. It is obvious that with the amount of short sales and foreclosures that banks have to handle they do make mistake when they report your foreclosure or short sale on your credit file.
Fortunately I have found a Law Firm That Aim to Permanently Remove once and for all!
Foreclosures/Short Sales
Credit Card Lates
Mortgage lates
Auto Lates
Collections
NOD’s
Tax/Judgment Liens
For More Information Call 1-877-APPLYFREE
Monday, May 30, 2011
How to Find Foreclosures Using Google Map
Google Maps can be helpful for finding foreclosures.If you’re in the market to buy a foreclosured house despite all the hassles and long waits associated with buying one, here’s a way to find properties in your area that are either in pre-foreclosure or are already owned by a bank.
Here are the basic steps.
1. Enter an address at Google maps or "foreclosure then type in YOUR CITY. (i.e. foreclsoures Northridge)
The little red dots that then appear on the map are foreclosures that are still on the market. At least in my area, the red dots just seem to be on the blocks where foreclosures are located IN YOUR CITY.
Still, it’s a good starting point for knowing if there are foreclosures in the area you want to buy in. (You could ask your Realtor to determine where the properties are.)
Keep in mind that buying foreclosured properties is not as easy, simple and fast as buying a standard property for sale, as banks take longer to make up their mind.
For more information on how to buy foreclosed properties in Los Angeles County call 1-877 APPLYFREE.
Here are the basic steps.
1. Enter an address at Google maps or "foreclosure then type in YOUR CITY. (i.e. foreclsoures Northridge)
The little red dots that then appear on the map are foreclosures that are still on the market. At least in my area, the red dots just seem to be on the blocks where foreclosures are located IN YOUR CITY.
Still, it’s a good starting point for knowing if there are foreclosures in the area you want to buy in. (You could ask your Realtor to determine where the properties are.)
Keep in mind that buying foreclosured properties is not as easy, simple and fast as buying a standard property for sale, as banks take longer to make up their mind.
For more information on how to buy foreclosed properties in Los Angeles County call 1-877 APPLYFREE.
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