Thursday, January 28, 2010
Freddie Mac CEO says housing market is near bottom...what do you think?
Foreclosures are still dampening this market and will continue to do so for the near forseeable future, but overall our national housing economy is at or very near the bottom, this from Freddie Mac CEO Charles Haldeman. He also predicts that mortgage interest rates for a 30 year fixed rate will remain between 5 and 6% through the end of 2010. Our biggest concern is the glut of foreclosed properties that are hitting the market at extremely low prices. This is going to hurt values in the short run, but once these clear the market we should start to see appreciation again (but nowhere near the double digit increases we saw during the housing bubble, and that is good, because obviously those gains were smoke and mirrors, and totally unsustainable). Let’s hope for the best!!
Sunday, January 17, 2010
Record number of foreclosures in 2009
Quick little informative article here. Looks like 2010 is going to be a banner year for foreclosures as well, unfortunately.
Monday, January 11, 2010
After doing a short sale, when can you buy again??
First of all let me start by saying I AM NOT AN ATTORNEY OR TAX PROFESSIONAL, and do not mistake this article as legal and/or tax advice!
Ok, disclaimer done.
I sell a LOT of short sales. Approximately 70% of my business in the past 2 years was either short sales or foreclosure. Over these past few years, I have learned a lot about the ins and outs of short sales.
One question I get a lot is: “how will completing a short sale affect my credit?” I can answer confidently that a short sale is MUCH better on your credit than a deed in lieu of foreclosure (4-7 years before a borrower can be considered for another loan) or an actual foreclosure (at least 5-7 years, sometimes up to 10 years before a borrower can qualify for another loan). Now put those two options up against a short sale: borrowers who complete a short sale can be considered for any type of loan as soon as 2 years after a short sale!
Fannie Mae wants short sellers to buy again in the future. Short sales are encouraged by the government. Obama’s Making Home Affordable plan incentivizes lenders, servicers, and borrowers to complete a short sale rather than go deed in lieu or actual foreclosure. However, unfortunately, short sales have NOT been streamlined yet. Every bank seems to treat them differently. For instance, with Bank of America, I had a short sale under contract for over 12 months. It did eventually close somehow, but imagine the frusteration.
One thing I can say is: our industry is extremely dynamic, and constantly changing. This is even more true with the short sale industry. I feel like a lot of the banks are getting their acts together. I even had a short sale that was less than a month from contract to close!
What I hope to see is more “pre-negotiated” short sales. In other words, a lender knows that the borrower will not be able to continue making payments and will want to do a short sale. Well, that lender can get the valuation of the property and give the homeowner or their realtor a “strike-off” price to short sell the property at. This would really alleviate the main objection most buyers avoid short sales for: that is the sheer amount of time it takes to get these deals approved and accepted by the lender. I have been starting to see this happen more, and I am guessing that is a trend that will continue.
Ben Blonder, Broker/Owner Kapital Real Estate LLC
Ok, disclaimer done.
I sell a LOT of short sales. Approximately 70% of my business in the past 2 years was either short sales or foreclosure. Over these past few years, I have learned a lot about the ins and outs of short sales.
One question I get a lot is: “how will completing a short sale affect my credit?” I can answer confidently that a short sale is MUCH better on your credit than a deed in lieu of foreclosure (4-7 years before a borrower can be considered for another loan) or an actual foreclosure (at least 5-7 years, sometimes up to 10 years before a borrower can qualify for another loan). Now put those two options up against a short sale: borrowers who complete a short sale can be considered for any type of loan as soon as 2 years after a short sale!
Fannie Mae wants short sellers to buy again in the future. Short sales are encouraged by the government. Obama’s Making Home Affordable plan incentivizes lenders, servicers, and borrowers to complete a short sale rather than go deed in lieu or actual foreclosure. However, unfortunately, short sales have NOT been streamlined yet. Every bank seems to treat them differently. For instance, with Bank of America, I had a short sale under contract for over 12 months. It did eventually close somehow, but imagine the frusteration.
One thing I can say is: our industry is extremely dynamic, and constantly changing. This is even more true with the short sale industry. I feel like a lot of the banks are getting their acts together. I even had a short sale that was less than a month from contract to close!
What I hope to see is more “pre-negotiated” short sales. In other words, a lender knows that the borrower will not be able to continue making payments and will want to do a short sale. Well, that lender can get the valuation of the property and give the homeowner or their realtor a “strike-off” price to short sell the property at. This would really alleviate the main objection most buyers avoid short sales for: that is the sheer amount of time it takes to get these deals approved and accepted by the lender. I have been starting to see this happen more, and I am guessing that is a trend that will continue.
Ben Blonder, Broker/Owner Kapital Real Estate LLC
Saturday, January 9, 2010
Co-borrowers qualify for the $8000 tax credit too!
This VERY short article clears up this issue. Take a look, it is from the Colorado Assoc of Realtors.
Monday, January 4, 2010
FORECLOSURES (and short sales) are hurting appraised values
Take a quick read of this article from National Assoc of Realtors. This has been an ongoing problem, especially in such areas as Weld County where there are tons of foreclosures/short sales. The problem is this: appraisors are using foreclosures and REOs as comps to non-distressed properties, which just serves to bring the whole value of the neighborhood down and further our bad situation with property values.
Right now, the government is reviewing appraisal standards, and it is likely that there will be sweeping change in that industry, and soon.
Right now, the government is reviewing appraisal standards, and it is likely that there will be sweeping change in that industry, and soon.
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