Thursday, March 29, 2012

Short Sales.....What are the banks saying?

Happy Thursday Morning! There are a couple of things I want to remind people of. First, at the end of 2012 the Mortgage Relief Act of 2007 expires. What does this mean? In short it means that if you foreclose or short sale your home after this time, you will have to pay earned income tax on the amount the bank forgave you! We don't want that to happen so if you are thinking of doing a short sale call me today! And I thought this article was interesting.

Short Sales Rise, More Banks View it as a Better Option

DAILY REAL ESTATE NEWS | THURSDAY, MARCH 01, 2012

Banks are more willing to agree to a sale at a lower cost than a home owner’s mortgage balance in order to avoid having the property fall into foreclosure, which can be more costly for a lender.
In the fourth quarter of 2011, there were more than 88,000 short sales, a rise of 15 percent compared to a year prior. In all, short sales made up 10 percent of all home sales sold in the fourth quarter, according to recent data released by RealtyTrac.
On the other hand, bank-owned homes dropped 12 percent year-over-year (to 116,000), making up 13 percent of all home sales during the fourth quarter.
The average short sale in the fourth quarter sold for $184,221, according to RealtyTrac. The average foreclosure, on the other hand, sold for $149,686.
Banks are now more willing to do short sales and that trend will likely “show up in more local markets in 2012 as lenders recognize short sales as a better option for many of their non-performing loans," said RealtyTrac CEO Brandon Moore.
Meanwhile, during the fourth quarter, 24 percent of homes sold — nearly one in four — were in some stage of foreclosure, either already bank-owned or already winding through the process, RealtyTrac reports. The number is slightly down compared to a year prior when foreclosures accounted for 26 percent of all home sales, RealtyTrac reports.
However, Moore says he expects foreclosure sales to rise this year, "particularly pre-foreclosure sales, as lenders start to more aggressively dispose of distressed assets held up by the mortgage servicing gridlock over the past 18 months.”
Source: “Foreclosures Made Up One in Four Home Sales,” CNNMoney (March 1, 2012)

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Thursday, March 22, 2012

Spring is in the air!

Wow Spring is here! And we are going to be busy for the rest of this month!! I personally am busy getting the back yard done!! I will post pictures when its done, even though I know that it HAS NOTHING to do with real estate! But its fun! And home improvements always improve the value of your home and makes it more comfortable for you and your family! Besides being busy redoing our back yard, I am, as always, busy trying to get the best matched home for my buyers and working hard to get the contracts accepted!

On the flip side of my buyers, my sellers are getting GREAT exposure on their homes! Excited about the traffic that they are getting!! This is good news for my sellers that they are getting traffic through and hopefully getting contracts accepted very SOON! And one went pending a few days ago! And the Sellers are HAPPY with it!

On another note, we are have a busy weekend next weekend for the RE/MAX Property Shop! WE are going to be a BIG sponsor of the Roots N Boots Rodeo in Queen Creek! So come and visit the booth and meet the agents! AND if you come when I am there you will get a great deal on something in the area!!! More details to come!!!

For more information call me at 480-275-9566 or check out my website www.sellingazwithrebecca.com

Tuesday, March 20, 2012

5 Foreclosure Myths for 2012

Thought this was a great article and hits many points that agents get everyday!!

Beginning in 2007, foreclosures rocked the real estate world. Like an out-of-control freight train, they began decimating the market, peaking in 2009. Myths and rumors began propagating like mushrooms as consumers struggled to understand the new reality. Although many misconceptions have come and gone, we still encounter five myths on a regular basis.

1. THERE IS GOING TO BE A FLOOD OF NEW FORECLOSURES TO THE MARKET.

This rumor has appeared every year since 2008 and has been routinely debunked. However, recent announcements that the Feds reached a settlement over the robo-signing scandal have reignited speculation. The idea is simple: Since the cork is now out of the foreclosure bottle, we’ll soon see another flood of REOs inundating the marketplace.

My personal opinion: don’t hold your breath.

Banks have learned that if they control inventory, they can affect local prices. By releasing homes in measured amounts, they realize higher prices than if they released a glut of homes. In addition, they’ve learned that if they can mitigate their losses by agreeing to a short sale, everyone wins.

2. YOU CAN GO DIRECTLY TO A BANK TO BUY A FORECLOSURE.

Every few weeks I’m asked how to buy foreclosures direct from a bank. Someone knows a friend being foreclosed on and they want to step in and grab the house before it hits the market. Don’t we all? In reality, banks have a simple system – they first offer properties on the courthouse steps. The rest they assign to asset mangers who then hire local real estate agents to put them on the market along with all the other homes. Want an REO? Pay cash at the courthouse steps or get in line witheveryone else when they hit the local MLS (Multiple Listing Service).

3. YOU CAN GET A KILLER DEAL BY SUBMITTING LOWBALL OFFERS ON FORECLOSURES.

You would think this myth would be dead by now. Unfortunately, like Elvis sightings, it just won’t go away. Here’s the truth: Banks want REOs sold in 30 days or less, so they typically appear on the market priced slightly under comparable properties. If the property doesn’t sell quickly, the bank will lower the price after about 30 days. Lowball offers are ignored and are, quite frankly, a waste of everyone’s time and effort. You might get a deal by offering a lower price on a foreclosure that’s been sitting on the market for more than 90 days, but remember that there are good reasons it’s gone unsold for so long. And even if you have cash, your lowball offer won’t be accepted —seriously.

4. YOU CAN’T USE FORECLOSURES WHEN DOING AN APPRAISAL.

Or short sales, for that matter. That is no longer true. In fact, in many neighborhoods, that’s all that’s there. Therefore, foreclosed or distressed sales represent the actual value of homes in the area and HAVE to be used to appraise other properties. Don’t like it? Get over it. Times have changed and the ways neighborhoods are valued have changed as well.

5. FORECLOSURES ARE ONLY AFFECTING THE BOTTOM END OF THE MARKET.

This used to be true. However, while foreclosure rates on the lower end of the market have actually decreased,they’re actually increasing on the upper end. According to Daren Blomquist, vice president of RealtyTrac, the market share of foreclosed homes under $1 million is shrinking, but those among properties valued over $1 million are rising – up 115% since 2007. And foreclosures on properties valued upwards of $2 million have increased by 273%. While some well-known jet-setters have melted down and lost everything, others are choosing tostrategically default. They see it like liquidating a poorly performing portfolio – they have enough resources to cut their losses and move on. Historically, banks have been reticent to foreclose high-end homes and absorb a large loss, but defaulters are now forcing their hands and mansion foreclosure rates are moving on up.

Myths control behavior, and this has never been truer than in the housing market. Savvy agents will work hard to educate their clients, debunk myths, explain market trends, educate with solid facts – and actually close transactions.

For more blogs or more informamtion check out my website at www.sellingazwithrebecca.com

Thursday, March 15, 2012

What HARP 2.0 Means for Homeowners

The government touted its Home Affordable Refinance Program (HARP) as a way to get the crumbling housing market on the road to a quick recovery and provide much-needed relief to struggling homeowners. Launched in March 2009, HAMP was supposed to help millions of homeowners get out from mortgages that were worth more than the house-- but to date, critics say it has fallen short of expectations. Now the government has refined the program, known as HARP 2.0, in an effort to assist the millions that need a lower mortgage bill.

“HARP has been around for a couple of years but hasn’t been that helpful to that many people,” says Bob Walters, chief economist at Quicken Loans. Many people that needed the help couldn’t qualify, he adds.

To qualify under the original HARP program, your loan-to-value ratio had to be less than 125%-- but for many struggling homeowners, their home value fell significantly below that, freezing them out of HARP. To be eligible for HARP 2.0, people need to have a home valued at less than their mortgage, and the loan has to be with Fannie Mae or Freddie Mac. The mortgage has to be in good standing, and homeowners need to have a good payment history for the last 12 months. The new HARP program will expire at the end of 2013. To check who owns a loan go here.

The original HARP program was geared toward the five biggest loan servicers Citigroup (C: 36.27, +1.06, +3.01%), Wells Fargo (WFC: 34.07, +0.70, +2.10%), Bank of America (BAC: 9.24, +0.40, +4.52%), Ally Financial and JPMorgan Chase (JPM: 44.70, +1.12, +2.57%), which limited the amount of loans that could get refinanced, according to Walters. This new plan includes mortgage companies across the country; these new servicers can now qualify a borrower for a HARP loan even if the borrower’s previous loan had mortgage insurance attached to it. According to Walters, this process was extremely difficult for non-servicers in the past. Mortgage insurers, which have to sign off on a refinancing for customers that have mortgage insurance, are currently working with lenders to develop a process that lets the mortgage provider and the insurer share information to streamline the process. When that happens, Walters says more people will see HARP loans get approved.

In December as part of HARP 2.0, pricing changes went into effect that lowered the costs to HARP borrowers. Coming in March, borrowers with loan values exceeding 125% will also be eligible for HARP. While in theory the loan to value could be unlimited, Walters says companies are still going to be cautious about lending to people with high loan to value ratios even though Fannie Mae and Freddie Mac are taking on the risk. “There’s been so many defaults and nobody wants to foreclose,” says Walters.

The government is also hoping to make the approval processes quicker by eliminating, in many cases, the need for an appraisal.

For homeowners with a service provider that doesn’t offer the HARP program don’t give up.

“If you get an unsatisfactory answer don’t stop, call someone else,” says Walters. “People shouldn’t assume the first no means they can’t get help.

For more information please call or text me at 480-275-9566 or email me at rebeccakallhoff@gmail.com or check out my site for more information at www.sellingazwithrebecca.com

Read more: http://www.foxbusiness.com/personal-finance/2012/02/23/what-harp-20-means-for-homeowners/#ixzz1pDqlAWVk

Wednesday, March 14, 2012

Frustrated in your home buying experiance?

Take a number! I hate to say that to buyers but that is really where we are at! It is crazy right now in the Valley. We bid, and we bid high and we try to get a house, and NOTHING. We are out bid, better offer, better financing (or most likely cash offers), and the buyer gets more frustrated. Don't feel bad the agents are frustrated too. I hate writing an offer and then having to tell my first time home buyer that they didn't get the house they really liked....Over and Over and Over.

But on the flip side of that we are getting offers on homes that are over priced and they are selling! So what does this mean? Has it become a sellers market? In a way, YES. Even if you are underwater in your home they are selling and banks are working with the short sales! Whew, this might mean that we are working our way out of a very down economics. Are we out of the woods, I don't think so, but I think we are moving in the right direction to home ownership! Now if we could get our buyers to own a home!!!

Selling AZ With Rebecca