Real Estate Information Archive

Blog

Displaying blog entries 1-8 of 8

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.

google map to real pro systemsFannie Mae-owned foreclosed properties are currently available for purchase to owner-occupied buyers before investors have an opportunity to buy them.  Fannie Mae calls this program First Look and has offered this incentive for a little more than a year, and recently revamped the program to include some HUD homes. In the Greenville, NC-Pitt County area, the First Look time period is typically the first 15 days the property is initially on the market.  Fannie Mae has made it easy to see what day of First Look the listing is on by visiting www.HomePath.com.

Home owners who plan to occupy a purchased home can put a property under contract during the first 15 days of the listings life. While investors, who typically buy about 70% of all foreclosures, have to wait until the First Look period is over with; ie: day 16.  Fannie Mae says, "While investors play an important role in the REO market, home buyers who intend to occupy a home make an immediate and lasting commitment to the community and therefore merit priority consideration in the REO sales process."  This program is making some inventory sit on the market longer than you would expect; even up to 90 days before investors can make an offer.

The truth of the matter is that most foreclosure and bank owned properties are in unlivable or undesirable conditions and are generally not the type of homes owner-occupants purchase. Buyers typically do not want a lot of clean-up and projects to work on when they first buy and move into a home.  Plus, many foreclosure homes will not qualify for conventional loans because of even small defects in the properties, such as a hole in a wall.  This means foreclosure homes cater to investors because investors more often have the resources to renovate these distressed properties.

From The Pistol Tingen Team’s experience Fannie Mae's First Look program does give more opportunity for home owners to have a leg up on investors.  On the other hand, quite often the program is letting the wrong person buy the house. Which has actually made more deals fall through, foreclosures stay on the market much longer and end up selling for less!

Foreclosures typically are not in the pristine condition that owner-occupant buyers are hoping for. Or buyers can't get a loan because of a defect in the home.  So, the owner-occupant buyer may by contract legally walk away from the deal during their inspection period. Thus the home goes back on the market, still belonging to Fannie Mae and the First Look period restarts at day 0.  In this example, 30+ days of marketing time have been used up, for no deal and to start all over again.  Our Team is seeing some single family Fannie Mae homes that fit this description go under contract 2-3 times before someone actually closes on the home. A lot of times it is an investor, who had realistic expectations to start with (that the home was in poor condition) that finally purchases the house.  Ironically the investor will buy the home for less because the listing is now “old” and due for price reductions. And all the while the investor could have purchased and closed within a fraction of time and would have probably paid more for the home.

In a perfect world it is nice that Fannie Mae is giving such opportunity to these owner-occupants.  But in the real world their program is clogging the market with aging, distressed properties while we are heading into the slowest marketing season of the year.

For more information about current real estate topics including foreclosures or for assistance searching for real estate located in the Pitt County/Greenville, NC area, please contact The Pistol Tingen Team at (252) 321-6161.

Resource: FannieMae.com

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.

Fannie May announced on  January 28, 2010, a new incentive as part of their ongoing effort to help stabilize neighborhoods.  Specifically, the incentive allows people purchasing a Fannie Mae-owned HomePath® property to receive up to 3.5 percent of the final sales price to be used toward closing cost assistance or their choice of appliances.  The offer is available to any owner-occupant who closes before May 1, 2010, on the purchase of a property listed as eligible for HomePath® financing.

HomePath® Mortgage offers special financing on Fannie Mae properties.  Benefits of this type of financing include low down payments--sometimes as little as 3 percent, flexible mortgage terms, and often loan qualification with less than perfect credit.  HomePath® Mortgage financing is available from a variety of lenders—both local and national.  Since lenders may impose their own limitations on the use of the 3.5 percent incentive, buyers should consult their lenders for guidance.

Fannie Mae’s HomePath® database includes only properties that are owned by Fannie Mae.  There is a wide selection of homes—including single-family homes, condominiums and town houses located in a variety of neighborhoods.  The number, the types and the sales prices of the homes offered for sale by Fannie Mae may vary substantially.  Many of these homes are relatively new; however, older homes are offered in some areas.  Some homes may require repairs.

To purchase a Fannie Mae property, buyers must go through a real estate professional.  Fannie Mae depends on the expertise of local real estate sales professionals and accepts offers only through a Fannie Mae-certified real estate listing agent.  Individuals may work with any real estate sales professional to submit an offer to the real estate agent who has listed the property.

For over 18 years, The Pistol Tingen Team has served as the exclusive Fannie Mae-direct real estate agents for the Pitt County, Greenville, NC and closely surrounding areas. The Tingen Team welcomes and encourages questions regarding Fannie Mae properties, as well as privately owned properties currently on the market. Call 252.321.6161 with questions or to see available properties.

Displaying blog entries 1-8 of 8

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

Disclaimer