Posted tagged ‘Short Sale’

September Bucks Forebodings of Decelerating Price Gains

November 8, 2013

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A leveling of home prices can be expected during the winter months and this is normal. You can look for an uptick in prices when spring gets here but nothing major. For a more detailed look at this subject – please read the article below.

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With recent predictions forecasting a falloff in home price increases over the next year, gains nevertheless continued at a strong pace in September, CoreLogic reported Tuesday in its monthly Home Price Index (HPI) report.

The company recorded a 12 percent annual gain in its HPI (including distressed sales) for September, representing the 19th straight monthly year-over-year increase and bringing the index to its highest point since May 2008.

The West claimed the top three spots for yearly appreciation, with Nevada (+25.3 percent), California (+22.5 percent), and Arizona (+14.6 percent) posting the highest percentages. Georgia (+14.4 percent) and Michigan (+13.9 percent) rounded out the list.

“U.S. home prices continued their ascent in September. Average home prices in nearly half the states are now within striking distance of their pre-downturn pricing peaks,” said Anand Nallathambi, CoreLogic’s president and CEO.

September’s report is of special significance, given the fact that the month marked the five-year anniversary of the start of the housing crisis. According to CoreLogic chief economist Dr. Mark Fleming, the five-year appreciation rate for all homes in the country was 3.4 percent.

On a monthly basis, home prices increased 0.2 percent over August, continuing a slowing trend that began earlier this year. Nallathambi said the deceleration in price gains “is natural and should help keep market fundamentals in balance over the longer term.”

To read the complete article – please use the link below.

Decelerating Price Gains

Housing Market Performs Well Despite Rise in Interest Rates

October 26, 2013

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While the small increase in mortgage rates did not affect the market much if the rate continues to rise you will see a sharp decline in sales. For a more detailed look at this subject please read the article below.

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Mortgage rates are inching higher and higher, but the market does not seem to be paying any heed as it continues to show signs of improvement, according to the HousingPulse Tracking Survey released Wednesday by Campbell Surveys and Inside Mortgage Finance.

Home sales were down somewhat in September, but other indicators—such as distressed sales, time on market, sales-to-list-price ratio, and purchase offers—remained positive, according to the survey.

“The emerging slowdown in home purchases appears to be largely seasonal,” said Thomas Popik, research director for the HousingPulse survey. “September is yet another month where higher mortgage rates have had only a moderate effect on the housing market.”

HousingPulse also tracks distressed property sales, finding the share of home purchases involving REOs and short sales decreased to 24.6 percent over the three-month period ending in September, marking a four-year low.

Time on market also fell to a four-year low last month, according to HousingPulse. Homes spent an average of 8.6 weeks on the market, based on the September data gathered. Notably, this is down from the spring home buying season when time on market was about 10 weeks.

To read the complete article please use the link below.

Housing Market Performs Well

HUD Delays Dual Agency Restrictions

September 30, 2013

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This is another case of the Government “Fixing” a problem that they had no evidence of it even existing. This rule would have produced wide spread havoc in the short sale market. At least they caught their foul-up in time to curtail the damage. Please read the article below.

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HUD has delayed its prohibition of dual agency listings on short sale properties according to a statement made this week by the National Association of Realtors (NAR).

The HUD prohibition had first been outlined in a July letter to mortgage servicers describing new anti-fraud requirements for short sales and deed-in-lieu of foreclosure transactions. The original policy was slated to go into effect October 1, 2013.

In response, NAR President Gary Thomas wrote a letter to HUD outlining NAR’s concern with both the reasoning behind the prohibition and the possible consequences of it.

“NAR has been told that the policy was implemented because the HUD Inspector General detected fraud and abuse in the pre-foreclosure sales process; however, no statistics or reports were provided to NAR detailing short sale fraud by real estate agents,” the letter said. “NAR takes fraud very seriously…If there is evidence of fraud by our membership, we would like to be part of an effort to develop policies that effectively address these issues.”

Thomas’s letter also raised concerns about how a prohibition on dual listing would affect agents’ and brokers’ ability to effectively serve their clients.

To read the complete article please use the link below.

Dual Agency Restrictions

FNC Report Points to Improving Foreclosure Market

September 16, 2013

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More foreclosed homes should be coming on the market as banks sell the inventory that they have been sitting on just waiting for the market to change prices to rise. Please read the article below, written by Hugh Moore, and let us know what you think.

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report released this week by mortgage technology company FNC indicates that the foreclosure market has improved dramatically in recent months, with foreclosure rates nearing pre-crisis levels. According to FNC’s Director of Research Yanling Mayer, the Foreclosure Market Report reflects rising home equity for homeowners who are trading up to more expensive houses.

“We’ve seen hard data from the past 18 months that shows rising home prices and a foreclosure market with diminished impact due to decreasing foreclosure inventories and fewer new foreclosure filings,” Mayer said. “Meanwhile, a very encouraging trend that has been developing is the rising participation of trade-up buyers who are seeing improving home equity position and positive capital appreciation on existing homes.”

Mayer went on to say that the developments are a sign of a “healthy and sustainable recovery,” since trade-up buying represents discretionary spending. “These buyers are typically more responsive to market conditions and financial incentives,” she said.

According to the report, foreclosure price discounts have dropped to a 10-year low of about 8.1 percent in Q2 2013. This represents a 12.5 percent decrease from one year ago. “At the height of the mortgage crisis in 2008 and 2009, foreclosed homes were typically sold at close to 25 percent below their estimated market value,” Mayer said. “In many fast-rising markets, such as Phoenix, Las Vegas, and California, investor activity and low foreclosure inventory drove prices up, frequently resulting in a price premium relative to estimated market value.”

Foreclosed property continued to be a profitable and popular investment, with a 7.8 percent average gross capital appreciation on their sales. The average ownership duration of all existing home sales was higher this quarter as well.

To read the complete article please use the link below.

Improving Foreclosure Market

Fannie Mae to Fix Glitch that Harms Some Consumers’ Credit

September 4, 2013

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This, fairly simple to fix, problem has been going on for years and the government is just now getting around to trying to fixing it. Please read the article below and let me know what you think.

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Because of a shortcoming in Fannie Mae’s software, many homeowners who sold their homes through short sales have suffered undue harm to their credit and additional penalties preventing them from attaining new mortgage loans for several years, according to Sen. Bill Nelson (D-Florida), who has been working toward a solution to the problem.

Short sales were relatively uncommon prior to the housing crisis, but with so many homeowners slipping underwater, short sales have served as a solution for many who are unable to pay their mortgages, with the added benefit of helping lenders and investors mitigate their losses.

Fannie Mae’s software reportedly does not offer a “short sale” label, and therefore short sales have been labeled as foreclosures in the GSE’s system.

While short sales may have some effect on credit, foreclosures are more harmful. Furthermore, after a foreclosure, an individual cannot obtain another mortgage loan for seven years in most cases.

After a short sale, an individual has to wait only two years before applying for a mortgage loan.

Florida suffered some of the highest foreclosure and underwater rates in the nation during the housing crisis, and Sen. Nelson has taken interest in the misrepresentation that has harmed many of his constituents.

To see the complete article – please use the link below.

Fannie Mae to Fix Glitch

Rising Rates Prompt Cash Buyers to Act

August 31, 2013

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This is a somewhat surprising percentage of sales that where all cash.  Please read the article below and let me know what you think.

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While higher mortgage rates have been blamed for the slowdown in pending home sales, they may be contributing to an increase in cash purchases, RealtyTrac suggested in a recent report.

In July, about 40 percent of residential property sales were all-cash transactions. The share presents an increase from 35 percent in June and 31 percent compared to July 2012.

Dallas experienced the biggest monthly increase in cash sales, at 82 percent, followed by St. Louis (+66 percent), Los Angeles (+32 percent), Riverside-San Bernardino in Southern California (+26 percent), Seattle (+21 percent), and Phoenix (+21 percent).

Daren Blomquist, VP at RealtyTrac, explained rising rates could be leading to a higher percentage of cash purchases, while “some non-cash buyers can no longer afford to buy, particularly in high-priced markets.”

Short sales also accounted for a bigger share of sales in July, increasing to 14 percent, up from 13 percent in the prior month and 9 percent from a year ago. Meanwhile, institutional investor purchases and sales for bank-owned properties fell flat, at 9 percent for each type of sale, unchanged from June and July 2012.

Overall, RealtyTrac reported an increase in July sales, with sales volume rising 4 percent from June and 11 percent compared to a year ago.

Despite the national gain, sales were still down year-over-year in eight states—California (-17 percent), Alabama (-14 percent), Arizona (-11 percent), Nevada (-7 percent), Georgia (-2 percent), New York (-2 percent), Hawaii (-1 percent), and Oregon (-1 percent).

To see the complete article – please use the link below.

Cash Buyers

Fannie Mae Update Addresses Short Sale Credit Reporting Issue

August 27, 2013

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This is something to be aware of if you are dealing with a client that has a short sale in their recent past. Please read the article below and let me know what you think.

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Earlier this year, reports surfaced of short sales that were erroneously reported as foreclosures on consumer credit reports. When the matter was investigated, the issued turned out to be a computer problem.

According to reports, the standardized computer software the credit industry was relying on lacked a specific code for short sales.

In an updated notice, Fannie Mae addressed the reporting issue, stating it “has been made aware that there are often inconsistencies in the credit data” for short sales.

Currently, lenders are having to manually underwrite loans to help borrowers become considered for a loan after the appropriate waiting period.

However, Fannie Mae is updating its automated underwriting system, known as Desktop Underwriter (DU), to allow lenders to disregard erroneous foreclosure information. More specifically, lenders will be able to input certain codes in an explanation field of the online loan application to indicate a short sale or deed-in-lieu. When DU sees the specific code, foreclosure information will be overlooked.

Fannie Mae typically requires a seven-year waiting period after a foreclosure and a two-year period for a short sale.

The changes to DU will apply to loan casefiles submitted to DU starting November 16,2013.

To see the original article – please use the link below.

Credit Reporting Issue