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Foreclosures Are Low, But Inventory is High

by Anthony Litz

 

Foreclosures are down Graphic

Nearly 8% of U.S. mortgages were at least 30 days past due in April but not yet in foreclosure. That was slightly higher than in March, but 16% more than last year, LPS Applied Analytics, which tracks the mortgage market.

Seriously delinquent loans - more than 90 days past due or already in foreclosure - also represented nearly 8% of loans in April. That was down slightly from March and up 11% from a year ago, LPS says.

 Less delinquency eventually set new housing market recovery, but that's far away. About 4.2 million loans are seriously delinquent or in foreclosure. At current sales rates, which will take four years to absorb the inventory, LPS says.

"There is still much water in the boat, but at least we have connected some of the leaks," says Herb Blecher, senior vice president LPS. "Now we can rescue the company out."

Almost 4 million homes have been repossessed by lenders as the housing market began to tank in 2006.

Falling house prices are more likely to drive late payment. "There are a lot of incentive for people to leave their homes," says IHS Global Insight economist Patrick Newport.

However, other factors may slow the arrears, including:

 • Fewer new problem loans. For every 100 loans that were current in November, 1.28% due 60 days in April, data show LPS. That's the lowest percentage in at least three years below the peak of almost 3% in January 2009. Rates for new problem loans are the highest in Nevada, Arizona and Florida.

 • Loan modifications. In April, 22.5% of loans were more than 90 days in arrears one year had become current. That figure was 12.6% in April 2010, LPS, said. Last year, nearly 1.8 million homeowners received a loan modification, 42% from 2009, says the hope and the alliance of mortgage servicers, investors and others. loan modifications often include lower interest rates or longer loan terms.

 • Improved quality of loans. Lenders have tightened lending standards for borrowers who receive loans are less likely to default.

 In April, less than 2% of loans in 2010 was delayed after 12 payments. At the same age, over 6% of loans in 2007 and 2008, there were criminals, the data indicate LPS.

SOURCE: USA Today

Foreclosures Slow Due To New Regulations

by Anthony Litz

 

The foreclosure process is taking longer than ever, which is slowing the foreclosures from coming to market.foreclosure time line calendar

 Recently there is an average 400 day period from the default notice until the day the bank reclaims the property. "That's up from 340 days a year ago and more than double the average 151 days it took to foreclose in the first quarter of 2007, at the start of the nation's foreclosure crisis.", says USA Today.

Experts say the the added delays although increase the homeowners time without monthly payments, the bank and loan-owner's losses become greater.

"April foreclosure activity hit a 40-month low, mainly because of processing delays, RealtyTrac CEO James Saccacio says. Default notices, scheduled auctions and bank repossessions were reported on 219,258 properties in April, down 34% from a year ago."

"In some cases, lenders are taking longer to begin foreclosing on loans more than 90 days delinquent because they're waiting longer to allow for modifications or short sales — when lenders take less for a house than what's owed — or other alternatives, Saccacio says."

 

Call The Pistol Tingen Team at 252-321-6161 or send us an email if you would like any information regarding the subject of foreclosures.  We are a wealth of information; please don't hesitate to contact us with any questions or for advice.

 

Resources: USA TODAY,

Landlords Gladly Rent to the Foreclosed

by Anthony Litz

 

google map to real pro systems The rental market in Greenville and Pitt County is H-O-T right now.

More than three quarters (82%) of the independent owners say they hire someone who lost a house in foreclosure, if the applicant had traditionally a good credit rating, according to a survey published today by the National Association of Independent Business Owners.

"The owners generally do not rent to applicants with poor credit and a foreclosure absolutely Slam someone scores. The exception is when they see people who have paid their bills all his life but lost his job, can not meet your mortgage and must hand over the keys to the bank, "said Tracey Benson, president of the National Association of Independent Business Owners.

Although the recent credit problems, Benson said, applicants with a foreclosure can be a good hazard, especially because I did once had its own home: "These people are used to taking pride in where they live often lost their jobs and homes through no. beyond their control. "

Increasingly, mortgage defaults due rather to the loss of jobs that poorly equipped borrowers who lost their homes that never should have bought, "said Benson. A background check, as conducted by the National Association of Independent Business Owners indicate in which class an applicant falls, and if the financial problems are part of a recent spate of bad luck or a trend throughout life.

"Because of this abundance of default, there is a higher need for rent, so that owners carefully vet applicants, " said Benson.

The National Association of Independent owners polled 563 members from 21 March to 25 March 2011.

 

+About The National Association of Independent Landlords

The National Association of Independent Landlords is the country's largest provider of services for small landlords.  Services include credit reports, electronic rent collection and tenant screening as well as information about property management, rental laws in all 50 states and other issues critical to property owners. Visit us at www.landlordassociation.com or call 800.352.3395.

SOURCES: http://www.landlordassociation.com - http://www.prnewswire.com - http://www.realtor.com

 

 

More than three quarters (82%) of the independent owners say they hire someone who lost a house in foreclosure, if the applicant had traditionally a good credit rating, according to a survey published today by the National Association of Independent Business Owners.

"The owners generally do not rent to applicants with poor credit and a foreclosure absolutely Slam someone scores. The exception is when they see people who have paid their bills all his life but lost his job, can not meet your mortgage and must hand over the keys to the bank, "said Tracey Benson, president of the National Association of Independent Business Owners.

Although the recent credit problems, Benson said, applicants with a foreclosure can be a good hazard, especially because I did once had its own home: "These people are used to taking pride in where they live often lost their jobs and homes through no. beyond their control. "

Increasingly, mortgage defaults due rather to the loss of jobs that poorly equipped borrowers who lost their homes that never should have bought, "said Benson. A background check, as conducted by the National Association of Independent Business Owners indicate in which class an applicant falls, and if the financial problems are part of a recent spate of bad luck or a trend throughout life.

"Because of this abundance of default, there is a higher need for rent, so that owners carefully vet applicants, " said Benson.

The National Association of Independent owners polled 563 members from 21 March to 25 March 2011.

30-Year Fixed-Rate Mortgage Drops to 4.8%

by Anthony Litz

MCLEAN, Va., April, 21 2011 /PRNewswire/ -- Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), which shows mortgage rates dropping after four consecutive weeks of inching higher.  

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 4.80 percent with an average 0.7 point for the week ending April 21, 2011, down from last week when it averaged 4.91 percent. Last year at this time, the 30-year FRM averaged 5.07 percent.  

 

  • 15-year FRM this week averaged 4.02 percent with an average 0.7 point, down from last week when it averaged 4.13 percent. A year ago at this time, the 15-year FRM averaged 4.39 percent.  

 

 

  • 1-year Treasury-indexed ARM averaged 3.16 percent this week with an average 0.6 point, down from last week when it averaged 3.25 percent. At this time last year, the 1-year ARM averaged 4.22 percent.  

 

Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage. Visit the following links for the Regional and National Mortgage Rate Details and Definitions.

Quotes

Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac.

  • "Low inflation is keeping mortgage rates at bay. The core consumer price index rose just 0.1 percent in March, below the market consensus forecast. The 12-month growth rate in core prices was 1.2 percent, which is also rather low by historical standards.

 

 

Get the latest information from Freddie Mac's Office of the Chief Economist on Twitter:  @FreddieMac

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.

Find more information about Freddie Mac at http://www.freddiemac.com

SOURCE Freddie Mac

Fannie Mae Announces 3.5% Buyer Assistance

by Anthony Litz

Washington, DC — Fannie Mae announced today that people purchasing a Fannie Mae-owned HomePath property will receive up to 3.5 percent in closing cost assistance. The initial offer must be submitted on or after April 11, 2011; and the sale must close on or before June 30, 2011 to be eligible for the incentive. Additionally, buyers must reside in the home as their primary residence (sales to investors are excluded).

"Attracting qualified buyers to the market and reducing the inventory of vacant homes remains essential to stabilizing neighborhoods and helping the market recover," said Terry Edwards, Executive Vice President of Credit Portfolio Management. "Since interest rates remain low, the incentive will go a long way toward helping even more families buy a new home so this is a great time for Fannie Mae to offer some assistance."

All Fannie Mae-owned HomePath properties are listed on HomePath.com and most listings include detailed property descriptions, photographs, community and school information, and more. In addition, many Fannie Mae-owned properties are eligible for special HomePath Mortgage and HomePath Renovation Mortgage financing, which offers homebuyers an opportunity to purchase with as little as 3 percent down.

Fixed-Rate Loans at New Low!

by Anthony Litz

 

Fixed rate mortgages have reached a new low this week says Freddie Mac. On Tuesday (Nov 9, 2010) the average of 4.24% fell down to 4.17% on a 30-year loan.  15-years fixed rate loans have a new average of 3.57%.  5-year fixed rate loans have a new low average of 3.25%.

Mortgage rates fall to fresh low. These average rates from Freddie Mac are calculated by tallying rates country wide Monday-Wednesday.  As we have mentioned before, you can expect rates to be different at different lenders and throughout the country.  These average rates do not include fee's, which are also competitive and different depending on lender and customer's credit scores.

Call The Pistol Tingen Team at 252-321-6161 or send us an email if you would like some lender recommendations along with their phone numbers.  We are a wealth of information; please don't hesitate to contact us with any questions or for advice.

 

Resources: USA TODAY, Associated Press

 

Student Rentals: Still A Great Investment!

by Anthony Litz

Over 19 million people are currently attending or enrolled at colleges and universities in the united states.  Many of these students attend schools away from home and need a place to live, which makes this investment niche thrive!  Experts say this market will flourish until at least 2018, when the last baby-boomer's children enter college.

ecu student housing rental investment Today's students look for homes with the most amenities, such as appliance-filled kitchens, furnished units and washer/dryers. Not often thought of, many students look for fenced-in backyards for their privacy or dogs.  Almost always a rental with a fenced yard rents faster.

Investors can look forward to rental incomes that are sometimes 10-20% greater than with normal tenants.  But on the other hand, time and money put into managing these kind of properties also increases by about 10%, according to an expert that owns over 50 rental homes across the United States.  In Greenville, NC the East Carolina University student properties are almost always occupied with renters, but these type of homes do have more turn over due to a young lifestyle and roommates that come and go.  Single-families stay at rental houses longer than students typically.

Pitt County and ECU offer a lot of opportunity for investors and landlords!  We enjoy a growing student population that will soon have a major increase with the new Dental School, which starts their first class in August of 2011.  "East Carolina University is the academic home to over 27,000 students and is a constituent member of The University of North Carolina", according to their website. There are always good potential rentals in our market for sale, including quite a few single family homes, duplexes and an apartment building from time-to-time.

Would you like more tips? Want a free list of potential university rental properties to look at?  Please call or email us, we are happy to help whether you are a seasoned or new investor!

 

Resources: Realtor.com & ECU.edu

New Trend? Interest Rates Increase -2nd Week In A Row.

by Anthony Litz

Not too long ago mortgage rates reached an all time low, and are still the best that any buyer could hope for.  But a new trend is emerging; 30-year fixed interest rates have increased for the second week in a row according to national averages with Freddie Mac.  This comes after around 10 weeks of decline.

9-17-2010 30-year mortgage rates increase

We may have hit the bottom.  If you are "on the fence" waiting for the house buying market to get even sweeter, it may be time to make a move.

Of course rates are going to vary on a case-by-case basis depending on an individual’s credit history and what programs a lender can offer. Rates are negotiable and competitive.  Shop and compare a couple lenders' quotes to get the best rate and combination of fees. Call The Pistol Tingen Team at 252-321-6161 or send us an email if you would like some lender recommendations along with their phone numbers.  We are a wealth of information; please don't hesitate to contact us with any questions or for advice.

Fannie Mae announced April 27 the extension of its seller assistance incentive on all Fannie Mae-owned HomePath properties. Buyers will receive 3.5 percent of the final sales price to be used toward closing cost assistance or their choice of selected appliances. The offer is available to any owner-occupant who closes on the purchase of a property listed on www.HomePath.com by June 30, 2010.

"We are happy with the results of the program, which has helped us to sell properties quickly, thereby stabilizing neighborhoods and property values," said Terry Edwards, Executive Vice President of Credit Portfolio Management.

Properties listed on www.HomePath.com are owned by Fannie Mae and include a wide selection of homes, including single-family homes, condominiums, and townhouses. HomePath properties may also be eligible for special HomePath Mortgage and HomePath Renovation Mortgage financing, which offers prospective buyers an opportunity to purchase properties with as little as 3 percent down.

For information on Fannie Mae properties within the Greenville, NC and Pitt County area, please contact The Pistol Tingen Team at (252) 321-6161.

30-Year Mortgage Rates Below 5% for Fifth Straight Week

by Pistol Tingen

Homebuyers, homeowners and investors are witnessing the fifth straight week where 30-year mortgage rates average below 5%.  Rates dipped this week after rising a week earlier and remain just above record lows.

Mortgage finance giant Freddie Mac said Thursday that average rates on 30-year fixed-rate mortgages fell to 4.82% this week from an average of 4.87% last week.  Rates have been below 5% for five consecutive weeks.

The all-time low of 4.78% was recorded on the week of April 2. Freddie Mac’s survey dates back to 1971.

Low rates have created a surge in refinancing activity, with nearly 80% of new home applications coming from borrowers seeking to refinance.  Freddie Mac’s sibling company, Fannie Mae, refinanced $77 billion in loans last month--nearly double February’s level and the best month for such activity since 2003, when the housing market was still surging.

According to Frank Nothaft, Freddie Mac’s chief economist, “The housing industry is starting to exhibit some positive signs.” But Nothaft noted in a statement that the signs were “scarce and too early to tell how permanent.”

Homebuilders are feeling a lot more optimistic that the worst housing downturn in decades may be finally starting to turn around. An index of builders’ confidence released Wednesday posted its biggest one-month jump in five years in April as many homebuyers seized on lower prices and incentives, and took advantage of lower interest rates and tax credits.

Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country.  Rates often fluctuate significantly, even within a given day.

For the most up-to-date mortgage and real estate information for the Greenville, NC and Pitt County area, please contact The Pistol Tingen Team at (252) 321-6161.

Displaying blog entries 1-10 of 13

BERKSHIRE HATHAWAY HomeServices Prime Properties,   Greenville, NC, 2625 Charles Blvd.

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