18. June 2011 by Michael McFarlane.

To many it comes as no big surprise that things have not been working in the loan modification department. The supply of hoops that one must jump through seem endless.  Homes often are foreclosed upon during the process.  The stories are many. 

Short sales have not fared much better in many cases.  Often there just seems to be too many departments involved, and they don’t appear to communicate with each other.  Again, homes are foreclosed upon during the process.

Recently three large banks have been called to task for failing to complete these programs and yet they continue to take the money designed to help them do just that!  Bank of America, JP Morgan Chase & Co, and Wells Fargo were the banks involved.  According to the Treasure Department, they received $24,000,000 last month alone through the programs, yet failed to meet acceptable completion standards.

The banks claim that they have made improvements in their processes, and the report does not give that fact enough credit.  While we don’t discredit the fact that there has indeed been improvements, have they been enough?  We don’t think so!  It is still a nightmare trying to get these things done, if they get done.

Here are some sources and other stories you might like to read:

$ source: Los Angeles Times ð
$ Other Stories:  BofA ‘Significantly Hindered’ Foreclosure Review ð; BofA may post $27 billion in housing losses by ‘13 ð.

We have had reasonable SUCCESS with loan modifications and short sales.  Is it easy?  NO!  There are a ton of hoops to jump through, deadlines to meet, phone calls to make, seemingly impossible demands to satisfy…the list goes on.  But this is why we succeed when a home owner often will not.  You have to continue earning a living, and living your life.  This is what we do!  We know how to do it, and have the contacts to get it done.

How does this effect you?  Do you have questions about YOUR best action? Contact us today for your free, no obligation consultation.

For ALL your real estate related needs and/or questions call ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below. Please note: all visits to our sites are secure AND confidential. We do NOT track your activity!

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11. June 2011 by Michael McFarlane.

Consumer borrowing and credit has become a major issue in the United States.  While this is hardly news to most, this fact may be.  Most home purchases within the last year have resulted in the borrower paying out more than 1/3 of their income to credit debt.

A new proposal would prohibit high debt borrowers for getting premium rates on their home mortgages.  The idea is to get credit debt (including the mortgage) below that 1/3 level.  The proposal also calls for a minimum of 20% cash down payment to qualify for the best interest rates on a mortgage.

While the increased down payment requirement has captured the press of late, the restricted debt limits would have the greatest restrictive effect according to some.  The new limits would be for a combined credit cap at 36%.  This includes the new mortgage, car loans, credit cards and revolving credit, students loans, etc.  There would also be a limit on just the mortgage payment itself of 28% of the borrower’s income.

Research by CoreLogic shows nearly 3/5 of home mortgages sold to Fannie Mae & Freddie Mac last year would not qualify under the new regulations.  Another analysis showed that MORE THAN 1/2 of mortgages sold in 2009 would fail to qualify under the proposed limits.

Most would agree that the system needs to have better protections to prevent a repeat of the recent (current?) crash/crisis.  But, some argue, other factors should be considered and figure into these limits.  Some feel that a high credit score might allow a higher limit.  Other conditions might also apply.  There are other conditions attached to these proposals governing how lenders sell their loans and more (read more about that in the source link below). 

$ source: the Washington Post ð

What is YOUR opinion? We’d love to hear from you!  Do you have questions about YOUR best action? Contact us today for your free, no obligation consultation.

For ALL your real estate related needs and/or questions call ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below. Please note: all visits to our sites are secure AND confidential. We do NOT track your activity!

Subscribe to Listings Updates                 Free Home Warranty

                Search the MLS                    Over the Back Fence

Home Rescue Group                          Free Home Market Analysis

                 Yuba-Sutter Real Estate Today

Posted in Finance | 1 Comment »

4. June 2011 by Michael McFarlane.

Can you believe it?  Interest rates were below 5% and are DROPPING!  Zero down loans, bargain loan rates, low selling prices, large inventory to choose from…  Could there be a better time to buy?

The 10 Year Treasury Note has dropped below 3%.  This is a leading backing to the home lending rates.  According to a recent survey from Freddie Mac “typical” interest rates on 30 year fixed rate loans are down to 4.55%.  That is the lowest since December of 2010.

15 year fixed loans drop to less than 3.75%.  That is the lowest since November of 2010.  The numbers given have were by owners placing 0.6% lender fees for the 30 years loans and 0.7% for the 15 year mortgages.

Is this starting a mad rush to refinance?  According to Freddie Mac when rates dropped this low last year refinance applications surged on both occasions.  So far that has not happened.  According to the weekly survey by the Mortgage Bankers Assn., applications for refinance fell 4% the last week of May from the previous week.  Currently they are down by 5.7%.

The last time rates were down this low refinance volume was up 20% according to Mike Fratantoni, a vice president of the trade group.  The reason may very well be the fact that many who would refinance can not.  Many are so far under water (loan balance less than current market value) that refinancing is not an option.

$ sources:  Los Angeles Times  ð
$                  Freddie Mac survey ð

Is this for you? Questions about YOUR best action? Contact us today for your free, no obligation consultation.

For ALL your real estate related needs and/or questions call ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below. Please note: all visits to our sites are secure AND confidential. We do NOT track your activity!

Subscribe to Listings Updates                    Free Home Warranty

            Search the MLS                Over the Back Fence

Home Rescue Group                        Free Home Market Analysis

             Yuba-Sutter Real Estate Today

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2. June 2011 by Michael McFarlane.

The answer to that question might depend on your perspective.  Since a home purchase is hardly an “impulse buy”, requiring a large chunk of cash (and often a loan to get that cash), one might argue that ANY real estate purchase in an investment.  So your perspective might be more dependant upon your intended use of your purchase, or at least the PRIMARY use.

Are you planning to live in the home for 2 to 5 years, or more?  If so, then we can probably assume that your primary purpose for the purchase is as a home, even though you do expect to profit from it.  Conversely, if you plan on living there a very short period of time, or not at all, we would call it an investment.

Why are we making a fuss over this one question?  Because it makes a fundamental difference in what you expect from your purchase.  And that makes a big difference in what should be your selection process.  It might even make a difference in whether the market is considered to be in a favorable condition or not.

OK…so is it a good time for investing?  According to market watch indicators and a recent survey by GfK Custom Research North America, it is.  And respondents feel that the next two years will continue to be favorable.  While 8.6% of typical home owners plan to purchase within the next 12 months, 1/3 of the investors said they also plan to buy within that time frame.  Add 9.1% of homeowners and 28% investors for the 12-24 month period and we have a large majority on potential buyers that think now is a good time the purchase.

There were some interesting shifts in attitude expressed in that survey also.  Over 50% of investors plan to hold their property five or more years, only 11% plan on selling within one year.  Nearly 60% have found repairs and maintenance to NOT be a problem, and 42% plan on doing the work themselves.  More than 65% said they don’t anticipate repair costs to exceed 20% of their purchase price.

$ read the complete survey ð 

Is this for you? Questions about YOUR best action? Contact us today for your free, no obligation consultation.

For ALL your real estate related needs and/or questions call ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below. Please note: all visits to our sites are secure AND confidential. We do NOT track your activity!

Subscribe to Listings Updates                                 Free Home Warranty

       Search the MLS                               Over the Back Fence

Home Rescue Group                                     Free Home Market Analysis

                   Yuba-Sutter Real Estate Today

Posted in Real Estate Market | No Comments »