Finally, Fannie has coherent rules for foreclosures, short sales, deed-in-lieu events...if a borrower avoids a full foreclosure, it's easier to get a mortgage the next time. October 1, it will get tougher if a borrower was full foreclosure - 7 years (vs. 5 yrs) or 3 years - extenuating circumstances (vs. 2 yrs). Call me for a cool reference chart! This updated provided by Brent Green of First Place Bank. www.brentgreen.net
Sunday, August 29, 2010
Good News for people in a difficult position
Monday, August 23, 2010
Words of Wisdom
"Planning is the active component of beginning with the end in mind. It is the first creation in your mind before physical creation. A goal is the end point and the plan explains how to get there. To be certain you can achieve your goals, break them down into manageable tasks with realistic deadlines. The goal inspires you, but the deadline motivates you."
- Stephen R. Covey, The 7 Habits of Highly Effective People
- Stephen R. Covey, The 7 Habits of Highly Effective People
Thursday, August 12, 2010
Homeownership is the American Dream
I promised you there would be no long winded articles but this really is a good one. If you own your home remember the following contributions you make to our communities.
Enjoy.
NAR: Homeownership, Stable Communities Linked
Home owners are more active in their communities, benefit from improved education opportunities, and report higher levels of self-esteem and happiness when compared to renters, according to leading research. A new report from the NATIONAL ASSOCIATION OF REALTORS®, Social Benefits of Homeownership and Stable Housing, explores the impact of stable housing and the positive social outcomes resulting from homeownership.
“Homeownership is in investment in your future – home is where we make memories, build our lives and feel comfortable and secure,” said Vicki Cox Golder. “Owning a home has long-standing government support in this country because homeownership benefits individuals and families, strengthens our communities, and is integral to our nation’s economy.”
NAR’s study identifies research from government, industry, and academia that identified the relationship between homeownership and stable communities. Home owners move far less frequently than renters, and therefore are embedded into the same neighborhood and community for a longer amount of time. This allows for social cohesion, ultimately resulting in social benefits and stronger communities.
“REALTORS® care as much about keeping families in their homes as they do about helping them find the home of their dreams,” said Golder. “Social benefits do not arise solely from ownership, but also from greater housing stability and social ties associated with less frequent moves among home owners.”
Several research studies cited in the NAR report have found that homeownership has a significant impact on educational achievement. For instance, the decision by teenage students to stay in school is higher for those raised by parents who are homeowners compared to those whose parents are renters. Access to economic and educational opportunities are also more prevalent in neighborhoods with high rates of homeownership. Furthermore, studies have shown that changing schools frequently due to moving impacts negatively a child’s educational outcome.
Civic participation is another social benefit resulting from homeownership and stable housing. Home owners are proven to be more politically active and are more likely to vote in local elections compared to renters. In addition, homeowners have a higher membership in voluntary organizations.
Studies have shown that home owners are more likely to believe that they can do things as well as anyone else, and they self-report higher ratings on their physical health. “The research shows that home owners report higher self-esteem and happiness than renters, resulting in better overall health, both physically and psychologically,” said Golder.
When it comes to property, home owners have more invested both financially and emotionally. Property crimes affect home owners directly, but nonviolent property crimes can impact the property values of the entire neighborhood. Therefore, home owners are more motivated to deter crime by forming and implementing voluntary crime-prevention programs. In addition, it is easier for home owners to recognize perpetrators in stable neighborhoods because of extensive social ties. Unstable neighborhoods often display social disorganization which can lead to higher levels of crime.
Along with protecting their home and neighborhood from crime, home owners spend more time and money maintaining their home than renters. Neighbors also influence other home owners to improve their property, resulting in a better overall quality of the community.
“Homeownership certainly contributes to positive social outcomes, but those outcomes are truly a result of stable housing communities,” said Golder. “With strong social ties and a cohesive community, home owners can enjoy not only the long-term financial benefit of owning a home, but also a more satisfying life – which is what’s really at the heart of the American Dream.”
Source: NAR
Enjoy.
NAR: Homeownership, Stable Communities Linked
Home owners are more active in their communities, benefit from improved education opportunities, and report higher levels of self-esteem and happiness when compared to renters, according to leading research. A new report from the NATIONAL ASSOCIATION OF REALTORS®, Social Benefits of Homeownership and Stable Housing, explores the impact of stable housing and the positive social outcomes resulting from homeownership.
“Homeownership is in investment in your future – home is where we make memories, build our lives and feel comfortable and secure,” said Vicki Cox Golder. “Owning a home has long-standing government support in this country because homeownership benefits individuals and families, strengthens our communities, and is integral to our nation’s economy.”
NAR’s study identifies research from government, industry, and academia that identified the relationship between homeownership and stable communities. Home owners move far less frequently than renters, and therefore are embedded into the same neighborhood and community for a longer amount of time. This allows for social cohesion, ultimately resulting in social benefits and stronger communities.
“REALTORS® care as much about keeping families in their homes as they do about helping them find the home of their dreams,” said Golder. “Social benefits do not arise solely from ownership, but also from greater housing stability and social ties associated with less frequent moves among home owners.”
Several research studies cited in the NAR report have found that homeownership has a significant impact on educational achievement. For instance, the decision by teenage students to stay in school is higher for those raised by parents who are homeowners compared to those whose parents are renters. Access to economic and educational opportunities are also more prevalent in neighborhoods with high rates of homeownership. Furthermore, studies have shown that changing schools frequently due to moving impacts negatively a child’s educational outcome.
Civic participation is another social benefit resulting from homeownership and stable housing. Home owners are proven to be more politically active and are more likely to vote in local elections compared to renters. In addition, homeowners have a higher membership in voluntary organizations.
Studies have shown that home owners are more likely to believe that they can do things as well as anyone else, and they self-report higher ratings on their physical health. “The research shows that home owners report higher self-esteem and happiness than renters, resulting in better overall health, both physically and psychologically,” said Golder.
When it comes to property, home owners have more invested both financially and emotionally. Property crimes affect home owners directly, but nonviolent property crimes can impact the property values of the entire neighborhood. Therefore, home owners are more motivated to deter crime by forming and implementing voluntary crime-prevention programs. In addition, it is easier for home owners to recognize perpetrators in stable neighborhoods because of extensive social ties. Unstable neighborhoods often display social disorganization which can lead to higher levels of crime.
Along with protecting their home and neighborhood from crime, home owners spend more time and money maintaining their home than renters. Neighbors also influence other home owners to improve their property, resulting in a better overall quality of the community.
“Homeownership certainly contributes to positive social outcomes, but those outcomes are truly a result of stable housing communities,” said Golder. “With strong social ties and a cohesive community, home owners can enjoy not only the long-term financial benefit of owning a home, but also a more satisfying life – which is what’s really at the heart of the American Dream.”
Source: NAR
Tuesday, August 10, 2010
What is HAFA?
On April 5, 2010 the HAFA program took effect. At this juncture, many of the country’s major mortgage servicer’s have agreed to participate. The buzz has been very optimistic in the real estate community. The National Association of Realtor’s has been hopeful that this program would lend expediency and transparency to what has thus far been a complicated, difficult, and often time consuming process.
I have several clients that have been solicited by their servicer’s to participate in HAFA. It is becoming ever more clear to me that just as the world of short sales has become much murkier, this program is not the “saving grace” many of us were hoping it would be. The underlying investor guidelines are still being utilized to assess the bank’s willingness to approve a borrower through HAFA. Although on the surface, HAFA appears to offer clear guidelines, if you read the guidelines carefully, there is still a fair amount of discretion for banks to evaluate a borrower’s financial circumstances per the underlying investor’s own independent guidelines.
In cases that I have seen where there are two mortgages this is an issue. The first mortgage holder approved the borrower through HAFA. However, the same borrower, utilizing the same documentation, was denied by the second mortgage holder. Logically you might ask how can one lender evaluate and approve the borrower and another deny them. Well, it was because the determinations are still being made “per the investor’s guidelines”. This transaction will still be approved. However, the borrower is not going to be eligible to participate in the HAFA program, at least on the second mortgage. In most of the cases I have been involved in, the approval’s on the first mortgage are not an issue. The issues are typically with the second mortgage holder and the borrower’s need for relief from deficiency.
I don’t see there being an extreme difference in how these decisions are being made by the lenders. Of course, this is quite unfortunate. There will be some borrower’s that will easily qualify for HAFA, and this will be a wonderful relief going forward with their lives. However, there will still be quite a few that may be left with the looming prospect of being pursued by their lender’s for a lingering deficiency balance.
Just as the Making Home Affordable Program (HAMP) was not the success that many believed it might be when it was introduced, I am fearful that HAFA may also be a similar disappointment.
Check out the link below for the guidelines of HAFA.
http://www.realtor.org/wps/wcm/connect/8ed80b00412373d29bb6bb08069f8e0c/HAFA+Brochure+Text+1.25.10.pdf?MOD=AJPERES&CACHEID=8ed80b00412373d29bb6bb08069f8e0c
Keeping you informed.
I have several clients that have been solicited by their servicer’s to participate in HAFA. It is becoming ever more clear to me that just as the world of short sales has become much murkier, this program is not the “saving grace” many of us were hoping it would be. The underlying investor guidelines are still being utilized to assess the bank’s willingness to approve a borrower through HAFA. Although on the surface, HAFA appears to offer clear guidelines, if you read the guidelines carefully, there is still a fair amount of discretion for banks to evaluate a borrower’s financial circumstances per the underlying investor’s own independent guidelines.
In cases that I have seen where there are two mortgages this is an issue. The first mortgage holder approved the borrower through HAFA. However, the same borrower, utilizing the same documentation, was denied by the second mortgage holder. Logically you might ask how can one lender evaluate and approve the borrower and another deny them. Well, it was because the determinations are still being made “per the investor’s guidelines”. This transaction will still be approved. However, the borrower is not going to be eligible to participate in the HAFA program, at least on the second mortgage. In most of the cases I have been involved in, the approval’s on the first mortgage are not an issue. The issues are typically with the second mortgage holder and the borrower’s need for relief from deficiency.
I don’t see there being an extreme difference in how these decisions are being made by the lenders. Of course, this is quite unfortunate. There will be some borrower’s that will easily qualify for HAFA, and this will be a wonderful relief going forward with their lives. However, there will still be quite a few that may be left with the looming prospect of being pursued by their lender’s for a lingering deficiency balance.
Just as the Making Home Affordable Program (HAMP) was not the success that many believed it might be when it was introduced, I am fearful that HAFA may also be a similar disappointment.
Check out the link below for the guidelines of HAFA.
http://www.realtor.org/wps/wcm/connect/8ed80b00412373d29bb6bb08069f8e0c/HAFA+Brochure+Text+1.25.10.pdf?MOD=AJPERES&CACHEID=8ed80b00412373d29bb6bb08069f8e0c
Keeping you informed.
Monday, August 9, 2010
Let the blogging begin
So here I am finally getting a site together to blog with my clients, customers and interested people. I will be posting interesting articles, rate updates, value updates for local areas and so much more. I encourage you to email me your questions or comments so I can blog about that too. I want to know what you want to read about. I wont make my posts long and boring. Just quick points for you to read thru so you too can have a bit of knowledge in the industry.
So here I go with my first blog. Let me know what you think. Have a great week.
Mortgage Rate Falls Under 4.5 %
Freddie Mac reports that long-term mortgage rates moved south again this week.
Interest on 30-year fixed loans hit a new low of 4.49 percent, compared to 4.54 percent last week and 5.22 percent a year ago; and the 15-year mortgage landed at 3.95 percent, down from 4 percent last week and 4.63 percent a year ago.
Five-year adjustable-rate mortgages reached a new low of 3.63 percent, down from 3.76 percent last week and 4.73 percent a year ago; while one-year ARMs fell to 3.55 percent from 3.64 percent last week and 4.78 percent a year ago.
So here I go with my first blog. Let me know what you think. Have a great week.
Mortgage Rate Falls Under 4.5 %
Freddie Mac reports that long-term mortgage rates moved south again this week.
Interest on 30-year fixed loans hit a new low of 4.49 percent, compared to 4.54 percent last week and 5.22 percent a year ago; and the 15-year mortgage landed at 3.95 percent, down from 4 percent last week and 4.63 percent a year ago.
Five-year adjustable-rate mortgages reached a new low of 3.63 percent, down from 3.76 percent last week and 4.73 percent a year ago; while one-year ARMs fell to 3.55 percent from 3.64 percent last week and 4.78 percent a year ago.
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