by Phoebe Chongchua
It may truly be the choosing of the lesser of two evils -- short sale or foreclosure -- but, if you have to get out of your home, finding a way to complete a successful short sale may provide the best outcome for a distressed homeowner.
Since I've covered short sales in previous columns, see Short Sale: May be Solution for Delinquent Homeowners, I am not going to focus on what they are but rather how to make them successful. Short sales are typically more difficult than a regular real estate transaction but they are better than simply walking away from a home and letting it foreclose.
These days, with foreclosures and short sales comprising nearly 40 percent of recent home sales, the National Short Sale Center (NSSC) is receiving more than 3,000 calls per month from homeowners across the nation. The company has already handled more than 1,000 short sales in all 50 states.
Nearly 12 million homeowners are upside down with their mortgages -- owing more than their home's value -- and the number is growing. It's estimated that number will increase to 15 million within a year's time.
Travis Hamel Olsen and some partners opened the NSSC a few years ago. He says the short sale is a "win-win" situation. The bank ends up losing less money than if it ended up taking back the property and the homeowner's credit is not damaged as much as from a foreclosure.
But the short sale process is not easy or financially pain-free. Some lenders will absorb the difference between what the outstanding mortgage is and what the home sells for in a short sale. However, other times the lender will seek to collect the difference from the homeowner.
If you're considering a short sale, here are some tips that you should consider.
Get expert help.
This is a must. Short sales are difficult and negotiating through the process can be very stressful. You need guidance and the best available information that you can find. "There's no charge for our services to the homeowner," says Travis Hamel Olsen, President of National Short Sale Center. That's because the NSSC is paid by splitting commission with the listing agent and the lender pays the company a closing fee that is authorized by the homeowner. For those fees, the company will help the homeowner navigate through rocky waters. "We will guide the homeowners, letting them know all the documents that they need to collect for their specific lender," says Olsen.
Start the process as soon as possible.
Contrary to what some homeowners believe, you do not have to be delinquent to start or complete a short sale. "Don't sign title over to anybody else to conduct a short sale for you," cautions Olsen. He adds, "A lot of people will sign the deed of the property over to somebody to negotiate the property -- that's not needed."
Submit a hardship letter.
Even though you'll utilize the services of expert agents and short sale specialists, you'll still need to do your part to help convince the lender that the short sale is the best outcome for all. The hardship letter explains to the lender why it is impossible for you to pay the full amount of the loan. It demonstrates your true financial hardship. Experts say you have to be careful if there is a big gap between your current income and the income you used to get the initial loan to buy the property. A large gap could point toward possible mortgage fraud, unless your financial circumstances have drastically changed.
Price the short sale competitively.
Usually, it's best to price the property at or near market value. Keep it competitive says Olsen. He says a lot of people want to list the property at what the debt is but that is not usually successful. The good news is that Olsen says banks are more willing to negotiate. "We are seeing more approvals and consequently more closings every single month," says Olsen.
The short sale can be a lengthy process, have, patience, quality experts on your side, and stay on top of what is needed from you to help close the deal. For more information on short sales visit: shortsalecenter.com.
link to article
http://realtytimes.com/rtpages/20081219_shortsales.htm
Friday, December 19, 2008
Thursday, December 18, 2008
RATES ARE AT HISTORIC LOWS
Refinancing Booms as Rates Fall
According to the Zillow Mortgage Marketplace, consumers were being offered 30-year, fixed-rate mortgages for rates 5.25% on Monday. Zillow.com said that the average rate for 30-year FRMs offered on the Zillow Mortgage Marketplace dipped to 5.25% on Monday, Dec. 15. That is contributing to a spike in loan applications for refinancing. Refinancing during the first half of December was up 230% from the first half of November, Zillow.com said. Refinancing accounted for more than half of home loan applications in the December period.
Now is the time to speak to those buyers on the fence on purchasing a home. The purchase rates are in the low 5%, if not lower in some cases. The rates are at a 4.5 year low. Clients should be jumping to purchase homes with these rates.
Remember that with FHA loans the buyer can bring as little as 2.25% for a down payment. VA loans are set at 100% financing. NO MONEY DOWN loans exist for all vets.
Have them call me for a free, immediate qualification. I will send Realtors that pre-qual letter in 1 hour.
Refinancing is also available at 95% loan to value. Call for a quote.
Joe Phillips
386-615-7977
According to the Zillow Mortgage Marketplace, consumers were being offered 30-year, fixed-rate mortgages for rates 5.25% on Monday. Zillow.com said that the average rate for 30-year FRMs offered on the Zillow Mortgage Marketplace dipped to 5.25% on Monday, Dec. 15. That is contributing to a spike in loan applications for refinancing. Refinancing during the first half of December was up 230% from the first half of November, Zillow.com said. Refinancing accounted for more than half of home loan applications in the December period.
Now is the time to speak to those buyers on the fence on purchasing a home. The purchase rates are in the low 5%, if not lower in some cases. The rates are at a 4.5 year low. Clients should be jumping to purchase homes with these rates.
Remember that with FHA loans the buyer can bring as little as 2.25% for a down payment. VA loans are set at 100% financing. NO MONEY DOWN loans exist for all vets.
Have them call me for a free, immediate qualification. I will send Realtors that pre-qual letter in 1 hour.
Refinancing is also available at 95% loan to value. Call for a quote.
Joe Phillips
386-615-7977
Mortgage Applications Rise
Mortgage applications climbed last week in response to falling interest rates, according to the Mortgage Bankers Association weekly mortgage applications survey.
The index increased 2.9 percent to 841.4 from 817.7 the previous week on an adjusted basis. On an unadjusted basis, it also increased 2.9 percent and was up 37.3 percent compared with the same week a year ago.
Most of the activity was in refinances, which increased to 76.9 percent of the total.
"It doesn't solve the problem for people who owe more than their home is worth, but for the significant majority who are able to refinance, it is quite a boon," said Bob Walters, chief economist at Quicken Loans in Livonia, Mich.
Interest rates were down last week compared with the previous week, and are expected to decline still further in response to the Federal Reserve cutting its benchmark rate to a record low this week.
Last week’s already low rates continued to decline:
30-year fixed-rate mortgages decreased to 5.18 percent from 5.44 percent;
15-year fixed-rate mortgages decreased to 4.93 percent from 5.08 percent
1-year ARMs decreased to 6.63 percent from 6.76 percent.
Source: Mortgage Bankers Association and Reuters News, Lynn Adler (12/17/2008
The index increased 2.9 percent to 841.4 from 817.7 the previous week on an adjusted basis. On an unadjusted basis, it also increased 2.9 percent and was up 37.3 percent compared with the same week a year ago.
Most of the activity was in refinances, which increased to 76.9 percent of the total.
"It doesn't solve the problem for people who owe more than their home is worth, but for the significant majority who are able to refinance, it is quite a boon," said Bob Walters, chief economist at Quicken Loans in Livonia, Mich.
Interest rates were down last week compared with the previous week, and are expected to decline still further in response to the Federal Reserve cutting its benchmark rate to a record low this week.
Last week’s already low rates continued to decline:
30-year fixed-rate mortgages decreased to 5.18 percent from 5.44 percent;
15-year fixed-rate mortgages decreased to 4.93 percent from 5.08 percent
1-year ARMs decreased to 6.63 percent from 6.76 percent.
Source: Mortgage Bankers Association and Reuters News, Lynn Adler (12/17/2008
Key Interest Rate as low as it can go
The Federal Reserve on Tuesday lowered its benchmark federal funds rate to a range or zero to 0.25 percent and said it would likely keep rates low for an extended period.
"The Federal Reserve will employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability," the Fed said.
The Fed also said it was prepared to purchase more debt issued or guaranteed by Fannie Mae, Freddie Mac and other government-sponsored mortgage agencies. And it said it is considering purchases of longer-term U.S. Treasury debt.
"The focus of the committee's policy going forward will be to support the functioning of financial markets and stimulate the economy through open market operations and other measures that sustain the size of the Federal Reserve's balance sheet at a high level," it said.
Michael Woolfolk, senior currency strategist, at the Bank of New York-Mellon, applauded the Fed’s approach. "We think it's the best possible move for the U.S.
consumer and for the financial market," Woolfolk said.
"The Federal Reserve will employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability," the Fed said.
The Fed also said it was prepared to purchase more debt issued or guaranteed by Fannie Mae, Freddie Mac and other government-sponsored mortgage agencies. And it said it is considering purchases of longer-term U.S. Treasury debt.
"The focus of the committee's policy going forward will be to support the functioning of financial markets and stimulate the economy through open market operations and other measures that sustain the size of the Federal Reserve's balance sheet at a high level," it said.
Michael Woolfolk, senior currency strategist, at the Bank of New York-Mellon, applauded the Fed’s approach. "We think it's the best possible move for the U.S.
consumer and for the financial market," Woolfolk said.
Friday, November 14, 2008
5 Ways to Dress Up Your Virtual Tours
New enhancements to virtual tours give potential buyers a real-life feel for a property while they're sitting at their computer.
By Michael Antoniak | November 2008
Not that long ago, having a virtual gave your online listing "wow" value. Today, virtual tours have become a routine—and even expected—element of property marketing. But that doesn't mean your virtual tours have to be boring.
New advancements and add-ons are taking this tool to the next level, helping buyers get a better feel for the home and the neighborhood without having to leave their chairs.
The biggest virtual tour advancement over the past two years has been the growing popularity of video tours. Video is great for conveying the look and feel of a house, the flow from room to room, and the visual appeal of selling points.
Here are several other new tools, perhaps lesser known than video, that you can use to make your online tours more appealing and informative. Some of these are widely available, while others are exclusive features available only from certain vendors. In my opinion, all of them are underused—which means you have the chance, once again, to stand out from the crowd.
1. Show Off the Floor Plan. Other than actually walking around the home in person, interactive floor plans are the best way to give buyers a sense of how the home is laid out. Interactive floor plans typically display an illustrated map, and let users click on areas of the floor plan to see an image or video clip from that vantage point.
How you can add it: Many vendors offer this feature, including TourVista, Flyinside.com, VHT, MapsAlive, and floorplansonline.
2. Help Them See Improvements. Don't just ask them to "imagine" what new cabinets or flooring would look like. Show them. Prospective buyers can click on an image from the virtual tour and instantly change the wall colors, redo the countertops, add a new roof, and more. Then they can print out the results.
How you can add it: Obeo's StyleDesigner is an upgrade to its HomeSite virtual tour packages. You can virtually decorate the space and then send the image to clients, or e-mail the image to clients so they can do the decorating themselves.
3. Make Marvelous Maps. Most buyers are just as interested in the community as they are in the property itself. Map mash-ups are an effective way to present that information visually. Your MLS likely provides a basic mash-up map populated with landmarks linked to listing photos and information. But you can combine maps with other types of information, too: schools, recreation facilities, shopping centers, restaurants, and even commute times. For example, REALTOR.com’s “Find A Neighborhood” feature combines housing and demographic information with maps consumers can use to explore what’s available.
How you can add it: For an idea of how mash-ups are being used in real estate, check Google’s Maps Mania directory for real estate. Sophisticated as any of these mash-ups may seem, if you can drag and drop, cut and paste, you can create one. It’s just as easy to incorporate it into your Web site or add it to your tour. To learn how, start with Google or Mapbuilder.
4. Use More Pictures, Better Pictures. If you're looking for an easy enhancement, simply add more photos and using some tools to improve the presentation. A survey by Point2Technologies earlier this year found a direct correlation between the number of photos and the effectiveness of online tours. Also, consider adding photos of the view.
How you can add it: TourFactory’s ultimate tour package now gives you the option of viewing pictures in a standard or widescreen mode. JustSnooping.com offers a High Def Home Show package to showcase listings at the maximum image quality and resolution attainable on the Web. For exploring an area, Realtor.com’s HD City Views of select cities (see New York, for an example) demonstrate how far digital imaging has come in its ability to capture the details of a neighborhood in an inviting, interactive image. To improve photos taken of a city view, Imagemaker 360 has a unique feature to called VIEW Technology that restores clarity lost in backlit situations for a more realistic presentation of how the outside appears through the glass.
5. Go 3D. Microsoft has just announced its Photosynth stitching technology that takes two dimensional images and re-renders them in a navigable 3D image. They’re similar but not quite the same as IPIX immersive images. The big difference: you can create them from pictures taken with any digital camera and free software from Microsoft.
Do Your Listings a Favor
Everyone knows how important it is for buyers to be able to view homes on the Web. Yet, too few real estate professionals are rising to the task and offering top-notch virtual tours. Do your listings justice and impress your clients by investigating some of the extras I listed above. In a challenging market, the listings that are presented best on the Web are the ones that will get the most attention.
Mike Antoniak is a journalist and technology expert with a focus on real estate applications.
link to story http://www.realtor.org/rmotechnology/techwatch/columns/0811_techwatch_virtualtours
NOT MARKET
Hot Market: Fort Myers Market Searing
by M. Anthony Carr
Prices are down 39 percent in Fort Myers, Florida fueling an amazing surge in sales of more than 125 percent in September. Following years of investor-driven profit, prices have been correcting at an alarming rate, at least to those who had funny-money loans. But to buyers who were priced out because of speculating by those seeking quick profits, the price corrections have brought them back into the market.
"Teachers, police officers and others who were priced out of the market during the feeding frenzy of 2006 are buying homes today", says Suzanne Sherer, president-elect of Realtor Association of Greater
Fort Myers and the Beach, Inc. "Anytime a market is driven solely by investors, it can’t sustain itself."
Interestingly the county surrounding the city, Lee County, is in the midst of a shrinking economy with unemployment at more than 9 percent -- nearly double from last year at the same time. But prices have dropped so low that residents can’t help themselves to write contracts at a dizzying pace.
The drop in new home development is another factor affecting the amazing growth in resale units so far this year. New home inventory in Ft. Myers is also dropping precipitously. Building permits for single family homes have dropped 71 percent in the latest reporting period. Meanwhile, condominium construction permits are down 62 percent.
I know we don't like to see the values dropping but sales being up is a good thing.
I hope that trend continues across the state.
by M. Anthony Carr
Prices are down 39 percent in Fort Myers, Florida fueling an amazing surge in sales of more than 125 percent in September. Following years of investor-driven profit, prices have been correcting at an alarming rate, at least to those who had funny-money loans. But to buyers who were priced out because of speculating by those seeking quick profits, the price corrections have brought them back into the market.
"Teachers, police officers and others who were priced out of the market during the feeding frenzy of 2006 are buying homes today", says Suzanne Sherer, president-elect of Realtor Association of Greater
Fort Myers and the Beach, Inc. "Anytime a market is driven solely by investors, it can’t sustain itself."
Interestingly the county surrounding the city, Lee County, is in the midst of a shrinking economy with unemployment at more than 9 percent -- nearly double from last year at the same time. But prices have dropped so low that residents can’t help themselves to write contracts at a dizzying pace.
The drop in new home development is another factor affecting the amazing growth in resale units so far this year. New home inventory in Ft. Myers is also dropping precipitously. Building permits for single family homes have dropped 71 percent in the latest reporting period. Meanwhile, condominium construction permits are down 62 percent.
I know we don't like to see the values dropping but sales being up is a good thing.
I hope that trend continues across the state.
Thursday, October 30, 2008
New and Existing Home sales Up!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Did you hear that correctly?
NEW AND EXISTING HOME SALES ARE BOTH UP.
The National Association of Realtors reported that sales by homeowners jumped in September to an annual pace of 5.18 million, up 1.4% from a year ago. It was the first time that sales rose compared to a year earlier since November 2005.
September sales were up 5% from the August reading of 4.91 million, marking the largest month-to-month increase since July 2003. Economists surveyed by Briefing.com had expected the report to show existing home sales rose to an annual pace of 4.95 million.
Sales of newly constructed homes rose in September, according to the monthly report from the U.S. Census Bureau, inching up 2.7% from August to an annualized rate of 464,000.
We all know that most of the sales are bank owned, but this is the U-turn in the market. We will see slow growth month to month from here on out.
Congrats to all of us who are still in the industry, I believe the worst has come. Now is the time to get out of that funk and be positive and work harder then you ever have in the past, because there are many of us who are being successful in this environment.
Good Luck to all.
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