WASHINGTON – Aug. 9, 2010 – In an effort to help responsible homeowners who owe more on their mortgage than the value of their property, the U.S. Department of Housing and Urban Development (HUD) provided new details about a refinance program it announced earlier this year that helps responsible homeowners who owe more on their mortgage than the value of their property.

Starting Sept. 7, 2010, the Federal Housing Administration (FHA) will offer certain “underwater” non-FHA borrowers a new FHA-insured mortgage. To qualify, an owner must be current on his existing mortgage, and his lender must agree to write off at least 10 percent of the unpaid principal on the first mortgage.

“We’re throwing a lifeline out to those families … experiencing financial hardships because property values in their community have declined,” says FHA Commissioner David H. Stevens. “This is another tool to help overcome the negative equity problem facing many responsible homeowners who are looking to refinance into a safer, more secure mortgage product.”

Other details: A homeowner’s existing loan cannot be FHA insured, and the refinanced FHA-insured first mortgage must have a loan-to-value ratio no more than 97.75 percent. The owner must qualify for a new loan under standard FHA underwriting requirements and have a credit score equal of 500 or higher. The property must be the homeowner’s primary residence, and the new debt must bring the borrower’s combined loan-to-value ratio to no greater than 115 percent.

Interested homeowners should contact their lenders to find out if they’re eligible, and to determine whether the lender will write down a portion of the unpaid principal. If a homeowner qualifies, the U.S. Department of Treasury will provide incentives to existing second lien holders who agree to full or partial extinguishment of the liens. To be eligible, servicers must execute a Servicer Participation Agreement (SPA) with Fannie Mae, in its capacity as financial agent for the United States, on or before Oct. 3, 2010.

The FHA provided complete details in a six-page mortgagee letter that can be downloaded in PDF format. To read the letter, go to: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/10-23ml.pdf

The tax credit expired, but it’s still a great time to buy a home thanks to low mortgage rates and motivated sellers. Here are five reasons why now is a great time to buy:

1. Low mortgage rates serve as an equity shock absorber. When buyers borrow at today’s record-low rates, they start building equity as soon as they close. That means they can absorb a few ups and downs as the still-recovering housing market gains traction.

2. Houses are in move-in condition. Homeowners continue to spend on maintenance and repair, according to the Harvard Joint Center on Housing. As these houses enter the market, they stand in marked contrast to tattered foreclosures.

3. Terrific houses are coming on the market. Foreclosures are finally starting to clear the system, and they are being replaced by some very attractive properties.

4. Appraisal regulations are finally aligned with market realities. Fannie Mae has adjusted its appraisal guidelines, giving appraisers more flexibility to set values that reflect the current market.

5. Plenty of programs. Many programs that encourage middle-class families to buy homes still exist, despite market downturns. Buyers who qualify can get a big boost by combining one of these programs with today’s low mortgage rates.

Source: ForSaleByOwner.com (07/29/2010)

June 2010 Real estate MLS stats, there are some very good signs here.. Download the PDF file below.

MLS Stats for June 2010 “Click to download”

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WASHINGTON – June 11, 2010 – Homebuyers may get an extra three months to finish qualifying for federal tax incentives that boosted home sales this spring.

Senate Majority Leader Harry Reid, D-Nev., said Thursday he wants to give buyers until Sept. 30 to complete their purchases and qualify for tax credits of up to $8,000. Under the current terms, buyers had until April 30 to get a signed sales contract and until June 30 to complete the sale.

The proposal would only allow people who already have signed contracts to finish at the later date. The National Association of Realtors estimates that about 180,000 homebuyers who already signed purchase agreements are likely to miss the deadline.

Reid introduced the proposal as an amendment to a bill that would extend jobless benefits through the end of November. Joining him were Sen. Johnny Isakson, R-Ga., and Christopher Dodd, D-Conn.

The Senate is expected to take up the amendment next week. Senate Democratic leaders hope to finish work on the jobless benefits bill next week, but they have yet to secure enough votes.

Reid, who faces perhaps the toughest re-election campaign of his political career, represents a state that has the nation’s highest foreclosure rate.

The Realtors group has been pushing hard in Congress for the extension. Mortgage lenders, the trade group says, have been swamped with borrowers trying to get approved by the end of the month. Many potential borrowers are unlikely to make the deadline.

“Time is of the essence,” said Lucien Salvant, a spokesman for the group. “It’s important for Congress to get this done, because there’s whole bunch of loans that aren’t going to close on time.”

First-time buyers were eligible for a tax credit of up to $8,000. Current owners who bought and moved into another home could qualify for a credit of up to $6,500.

A very hot March
(MLS stats Click Here .pdf)

Absorption Rate: With falling inventory and the trend for increased sales, the absorption rate continued to rise to 11.5 percent for single-family and 9.5 percent for condos. Currently the months’ supply of inventory is 5.5 single-family and 7.6 condo.

Inventory: The number of listings on the market continues to drop on a year-over-year basis. After a slight increase in listings earlier this year, listings dropped again in March. They were down nearly 16 percent for single-family and over 17 percent for condos since March 2009.

Units Sold: The biggest gain took place in sales. Single-family unit sales were up dramatically at nearly 27 percent over March 2009. Condo unit sales increased a whopping 58.5 percent over last year. That’s a pretty torrid pace considering how difficult the condo market has been for the past three years.

Median Price: The median sales price for single-family homes was barely below the March 2009 level, with a 1.1 percent decline. The condo median price fell 12 percent from last year.

Contracts Pending: With single family pending contracts up 60 percent and condo pending contracts up 32 percent from last year, there is great promise of a couple more good months ahead.

Most of the single-family home sales were in the $100,000 to $200,000 range at 37.4 percent and the second highest grouping was in the below $100,000 range at 33 percent. In the higher ranges, 24.7 percent sold in the $200,000 to $400,000 category while 4.7 percent were sold at more than $400,000. Around 1 percent were sold for $1 million or more.

Condo sales were brisk in the below $100,000 range at 46.7 percent. It is interesting to see 12.1 percent selling in the over-$400,000 category, with a surprising 3.1 percent sold at more than $1 million. Are we seeing recovery in the luxury market? The $100,000 to $200,000 range pulled in 26 percent of the sales, while 15.3 percent were in the $200,000 to 400,000 segment.

Pinellas County looks attractive again!

Don’t miss out on this GREAT TIME to buy or you could be sorry!

If you are like many American’s who purchase or refinanced their home during the heat of the real estate boom this could be the program that was designed to help YOU! Over the past 2 years I’ve been working to help many clients who have found themselves upside down and need financial help to correct their housing situation. It’s been a long and hard road for many of these good people whose lives have changed in one way or another.

Finally it looks like our government has taken a step in the right direction to streamline the process of helping these good hardworking people.

There are two program: The first is called HAMP, and this is how it works:
The Home Affordable Modification Program is designed to help as many as 3 to 4 million financially struggling homeowners avoid foreclosure by modifying loans to a level that is affordable for borrowers now and sustainable over the long term. The program provides clear and consistent loan modification guidelines that the entire mortgage industry can use.

Borrower eligibility is based on meeting specific criteria including:
1) borrower is delinquent on their mortgage or faces imminent risk of default
2) property is occupied as borrower’s primary residence
3) mortgage was originated on or before Jan. 1, 2009 and unpaid principal balance must be no greater than $729,750 for one-unit properties.

After determining a borrower’s eligibility, a servicer will take a series of steps to adjust the monthly mortgage payment to 31% of a borrower’s total pretax monthly income:

•First, reduce the interest rate to as low as 2%,
•Next, if necessary, extend the loan term to 40 years,
•Finally, if necessary, forbear (defer) a portion of the principal until the loan is paid off and waive interest on the deferred amount.
Note: Servicers may elect to forgive principal under HAMP on a stand alone basis or before any modification step in order to achieve the target monthly mortgage payment.
The Home Affordable Modification Program includes incentives for borrowers, servicers and investors – For More Info Click Here

If you can’t complete the HAMP program for one or a number of reasons than you maybe (should be able to) go in to the second program call HAFA.

Here is the info on HAFA: How HAFA Can Help

The Home Affordable Foreclosure Alternatives (HAFA) Program was designed to complement the Home Affordable Modification Program (HAMP) by helping current homeowners with mortgage debt who are eligible for HAMP but still cannot keep their home.

When a borrower applies for help from HAMP, not everyone succeeds with the program. Sometimes their lender is unable to approve a loan modification. Other times the borrower declines the terms of the loan modification. Some borrowers are approved and accept the terms of the modification, but fail to complete the program for various reasons. Before HAFA, these borrowers were usually headed for foreclosure.

HAFA gives those borrowers a viable alternative to foreclosure. If they have or want to find a buyer for their home, they may request approval for a short sale with pre-approval short sale terms and minimum acceptable net proceeds. If not, they may request approval for a deed-in-lieu . When a borrower applies for help with one of the HAFA solutions, the program already has their financial and hardship information from their HAMP application.

HAFA also imposes limits on the lender to help the borrower. Under the terms of this program, a lender must release the borrower from all future liability for the first mortgage debt. The lender may not ask the borrower for cash or a promissory note, and the lender may not ask a court for a deficiency judgment. The program also prohibits the lender from asking the listing real estate agent to discount their commission at the closing of a short sale.

All documents have been standardized and procedures, time frames, and deadlines have been streamlined under HAFA to make the process easier for both borrowers and lenders.

HAFA also provides financial incentives for both borrowers and lenders to participate in the program. Borrowers are entitled to receive $1,500 in relocation assistance , to be paid at closing. Lenders or loan servicers may receive up to $1,000 to help with administrative costs. There are also financial incentives for the lender or investor on the first mortgage to allow some of the proceeds from the sale of the property to be paid to subordinate lienholders.

Finally, participation in the HAFA program puts the foreclosure process on hold for the borrower. The lender may initiate the foreclosure process, but if the borrower is in the middle of the application process, or if any approved short sale or deed-in-lieu agreement has not been completed or reached its deadline, the lender may not complete the foreclosure process.

For more information Click Here

There are a lot of people who need this information so please forward to a friend or RT on twitter

WASHINGTON – April 6, 2010 – A run-up in housing prices contributed to the downfall of real estate, but now some appraisers fear low-ball valuations could lead to the next market muddle.

They say a new federal rule to speed up short sales will increase banks’ reliance on broker price opinions (BPOs) – cheaper, quicker and unregulated home valuations that some argue could lead to an emerging type of mortgage fraud called “flopping.”

Banks have increasingly used Realtors to do broker price opinions, or BPOs, to set list prices as the market swelled with short sales.

Already losing money on the deal, a lender can pay a Realtor for a BPO and avoid a professional appraisal bill costing perhaps hundreds of dollars more.

The new Treasury Department rule streamlines the process for short sales, in part, by requiring participating banks to accept purchase offers that meet preapproved list prices, which can be determined by a BPO.

It’s all very dense, but consider a $1 million home that is inaccurately valued at $700,000, then sold at that amount. The bank is out the $300,000, and neighborhood values decline.

“If you pay an agent … to do the job of an appraiser … how much time and accuracy do you think you’re going to get?” said Realtor Jared Dalto of West Palm Beach-based Seawinds Realty.

Realtors who do BPOs argue appraisers are just angry about losing business. They say a BPO can actually be more accurate in some cases because Realtors know area market trends better than appraisers.

“We’re on the street every day. I’m seeing what’s happening,” said Realtor Frank Verna, who specializes in distressed property sales in northern Palm Beach County. “An appraiser may do a more in-depth study, but that doesn’t necessarily mean it’s correct.”

Another concern voiced by appraisers is that an agent doing a BPO could have a conflict of interest to assign a specific value to a property to help it sell. The issue was stressed in March letters to Treasury Department officials from national appraisal groups, which noted concern that using BPOs exclusively could increase “flopping.”

The definition of flopping varies, but it generally includes a BPO assigning a lesser value to a home, which is then sold by the bank based on the discounted value. The buyer then flips the property, selling it at its true market value and giving a kickback to the Realtor who did the original BPO.

Palm Beach County Realtors and mortgage brokers interviewed for this story said they haven’t encountered flopping here, but Peter Zalewski, a principal with the Miami research and brokerage firm Condo Vultures, said he sees it in his area.

“It’s definitely happening,” Zalewski said. “If you have access and information, you can put a spread on anything today, and buyers are coming in with cash, which means there is no need for an appraisal.”

Verna, who said there is no licensing requirement for Realtors who do BPOs, recently had 25 properties to look at in one day. He said one BPO takes about an hour to complete.

Mike Slade, a principal with Callaway & Price appraisals in West Palm Beach, said his appraisers can take up to a day to complete one appraisal.

While both appraisals and BPOs may involve only a few minutes spent physically looking at a home, an appraisal is supposed to include more research on area prices, sales and upgrades.

Appraisers are licensed and regulated by the state. Realtors are expected to adhere to a code of ethics set by the National Association of Realtors. The association defends BPOs, saying they benefit borrowers because they are less expensive yet are widely accepted as reliable and accurate.

“While misconceptions in the industry persist, there is no evidence that a BPO exacerbates mortgage fraud or abuse,” said NAR President Vicki Cox Golder.

Plus, Verna added, most short sales have multiple BPOs done on them. “It’s not one person controlling the value of the property,” he said.

Bank of America didn’t return a request for comment about the use of BPOs. Another large lender didn’t want to speak on the record about the issue but said BPOs have been useful given the large volume of properties it now deals with.

Skip McDonough, a broker with Family Mortgage in Jupiter, said he has seen “tremendous inconsistencies” in property valuations done by a certified appraiser vs. a Realtor.

“A good broker will do a good job and a BPO can be a valuable tool,” said Slade, of Callaway & Price. “Unfortunately a broker may have the expectation of getting a commission on the sale. As an appraiser, the only fee I’m getting is what you pay me.”

WASHINGTON – March 29, 2010 – The Senate adjourned last week without approving H.R. 4851, which would have extended a number of programs, including the National Flood Insurance Program (NFIP).

Authority for the NFIP expired at midnight on Sunday, March 28. That change impacts all home closings that require a flood policy, unless the policy was issued before Sunday.

Homeowners who hold flood insurance policies still have coverage; but NFIP cannot issue new policies, increase coverage on existing policies or issue renewal policies. Once Congress authorizes the program again, however, it’s expected to make it retroactive.

“This is now the third time in recent months that the National Flood Insurance Program has been allowed to lapse, and each time for reasons that have little or nothing to do with the program itself,” National Association of Mutual Insurance Companies’ spokesman Matt Brady says. Brady notes that this lapse, like the others before it, will have a “serious impact” on homebuyers in flood zones who hope to close on a home during the inactive period.

Efforts to reach a bipartisan flood agreement last week in the U.S. House and Senate failed over discussions on how to pay for the broader bill, which included other programs. While passage is still not assured the week of April 12, a procedural motion has been filed in the Senate setting up a vote.

The National Association of Realtors® says it has stressed the importance of the NFIP program to Congress, and NFIP’s role in the real estate market. NAR hopes to not only see the program extended in April, but to also forge a long-term solution that extends the program as long as possible.

According to a letter from U.S. Department of Homeland Security Division Director Dennis L. Kuhns, Bulletin W-09068 – “Recommendations/Guidance for Possible NFIP Authority Lapse and Hiatus, issued Oct. 27, 2009 – should be used as a reference on how the program operates during a hiatus.

The Bulletin can be downloaded (PDF format) at: http://www.nfipiservice.com/stakeholder/pdf/bulletin/w-09068.pdf

View the MLS stats for Feb 2010. The home sales are up and the market is moving.

“Click on the link and open the pdf. file”

If you would like a market snap shot of your home or neighborhood let us know. Leave us a comment let us know what we can help you with.