According to CNBC report, the Obama administration will expand its signature foreclosure-prevention program to try to help with heavy debt home owners avoid losing their homes. Home owners can have more time to seek a mortgage modification under the Home Affordable Modification Program or HAMP.
The Treasury Department has announced last January 27, Friday, that the Home Affordable Modification Program (HAMP) will also be extended through 2013. The program was initially set to expire by the end of 2012. The following changes are to take effect too:
- Treasury will triple the incentives it pays to private lenders. They'll be reimbursed from 18% - 63% of the amount they take off the mortgage principal.
- Currently, Fannie Mae and Freddie Mac do not offer principal reduction plans as part of their HAMP modifications. To encourage the assistance, Treasury said it will pay the same principal reduction incentives to Fannie Mae or Freddie Mac if they allow servicers to forgive principal reduction in conjunction with a HAMP modification.
- Modification guidelines will be relaxed to take into account debt such as medical bills and home equity loans.
- Houses occupied by renters will also be eligible for HAMP modification.
No new funds are allocated for HAMP's expansion, since less than $10B of the $29B of the program has been spent so far. If you need more information on Home Affordable Modification Program or HAMP, please don't hesitate to contact me.
Monday, January 30, 2012
Monday, January 16, 2012
Freddie Mac Now Extends Up To 12 Months Forbearance To Unemployed Borrowers
According to Bloomberg report, to help unemployed borrowers keep their homes, Freddie Mac has announced on 6th of January that it is giving mortgage servicers authority to give unemployed borrowers with Freddie Mac owned or guaranteed mortgages six month of forbearance without prior approval from the giant mortgage lender. And an additional up to six months, or a full year, with Freddie mac's prior approval.
Previously, Freddie mac allowed servicers to grant only up to three months of forbearance with no payment and without prior approval, or six months at a reduced payment with prior approval. And the only reasons acceptable for the longer forbearance are natural disasters, permanent disability or long-term medical emergencies.
Under the new Freddie Mac's deal, delinquent borrowers in an existing short term forbearance plan can be considered for an extended forbearance under the new policy. According to the latest statistics, nearly 10% of delinquencies of Freddie Mac mortgages were tied to unemployment.
The new forbearance relief options were designed to effectively assist struggling borrowers through a period of unemployment, giving them more time to get back on their feet without worrying about losing their homes.
The expanded forbearance is set to take effect on February 1, 2012.
Monday, January 9, 2012
New Administration Plan to Save the Housing Market
The government is still working on what the pricing would be, how they can partner with private investors, and who will be managing the properties.
There are a number of institutional investors who have already shown their interest in bulk REO deals. However, the new plan has to incorporate ways to help facilitate financing.
"Larger investors want to put their hands into 50, 100, 500 properties per deal, or $ 1 billion-plus in assets", says official close to the plan.
Families who have lost their homes to foreclosure tend to move to single-family rentals, so the proposal to convert foreclosures to rentals is justifiable.
Will this plan of the administration help the recovery of the housing market? If this plan pushes through, it will be good news for the new investors, as homeowners who have foreclosed properties prefer to rent, not to mention, the rentals are increasing.
Tuesday, January 3, 2012
2012 New Year - New Options!
HAPPY NEW YEAR! The old year has gone... what is in store for us in 2012 in terms of Real Estate? In the year 2011, the Real Estate market has experienced lowest mortgage interest rates in decades. This has played a major role in a homebuyer's decision in purchasing a home. In the latest study released by Mortgage Bankers Association or MBA entitled, "The Great Recession and Attitudes Toward Homebuying" reveals that home buyers still think that now is a good time to buy. According to Gary V. Engelhardt, Professor at Syracuse University, "Despite high unemployment and slow economic growth, the bulk of American households believe that now is a good time to buy a home." He also says that the profile of homebuyers is young, educated, white and Hispanic households.
Lawrence Yun, Chief Economist of National Association of Realtors (NAR) predicts, "with housing inventory down significantly in 2011 as compared to 2010, home prices could easily turn up in 2012." This is good news for the home sellers. Lots of buyers in the current market with low inventory creates high demand. Waiting to sell will allow supply to build and more competing homes to go on the market.
One area where home buyers can look for homes are the Inventory in Expired Listings. Searching in Expired Listings may prove beneficial to a potential home buyer. But, they also have to understand the details why a property did not do well in the market.
Why Listings Do Not Sell...
Nearly 15% to 25% of all listings do not sell. The market did not accept market effort, the price, the condition, the location or a mix of all. The seller has control over two of these things: Price and Condition. While the Realtors control one: Marketing Efforts.
Location:
No one can do a thing about the home's location, except accent the positive and minimize the negatives within the various marketing strategies to be implemented.
If your listings have expired, you have a decision to make:
- Decide not to sell.
- Work with a top producing agent who knows the market.
- Lower the price to the current market.
Condition:
First impressions are lasting impressions. Homes that are not prepared first won't show well as compared to other properties. Getting a home in good condition does not make it worth more, but being in poor condition makes it less desirable.
Some tips to make your Home in Showing Condition:
a. Remove all items and furniture that you can live without.
b. Have all rooms painted in neutral color. The kitchen and bathrooms are reference points and must be in excellent condition. They show age, wear and tear more than any other room in your house.
Price:
Overpricing a home is responsible for most expired listings. The wrong price attracts the wrong buyers. It creates a bad reputation for the house in the market place and makes properly priced homes look even better. If the property is priced right the first time - it will sell.
Marketing Efforts:
As a Realtor, online marketing is our first priority. The internet is the first place more and more homebuyers are beginning their search for a home. As per National Association of Realtors, 88% of the home buyers used the internet in home search. These numbers will only increase with the Internet reaching more and more households. Nearly 70,000 new people are getting Internet access every day. Studies also show that the average home buyer is also getting younger and increasingly grew up with the Internet.
In addition to the huge audience of excellent prospective clients, the Internet offers both convenience and cost effectiveness that traditional media cannot. Web sites are more engaging and informative than even the best brochures. Emails make it easier and cheaper to keep in touch with existing clients.
When listing your home, it is very important to work with an experienced Realtor who would be able to share his professional expertise; get you the best price for your home; who can provide you would endless contacts and network; and take out the headache of doing the paperwork for you. And of course, he should be able to close the deal at the least possible time.
If you want to work with a Realtor who has a proven track record in selling homes, please don't hesitate to contact me.
Tuesday, December 27, 2011
2012 Household Budget 101
Happy New Years!!! Another year is about to begin.
It's highly recommended to track the expenditures for the upcoming year to help achieve our goals, both business and personal. One of the best ways to track expenditures is to create a budget and plan of attack.
Tracking your spending isn't quite as hard as you think. A pencil and notebook will do the job, however, if you want more details, you can use software such as Money or Quicken. Or you can list your expenses using http://www.budgetworksheets.org/worksheet/family. This way you can see where the bulk of your money is going. Learn how to create and maintain a personal or family budget and use spending guidelines to help you find the right plan for you and for your family.
1. Getting Started:
Start by listing your fixed costs:
- Mortgage payment or rent
- Utilities
- Insurance
- Car payment and operating costs, including gas, oil changes and scheduled maintenance.
- Food, including what you spend to eat out.
- Clothing for you, you partner, and the kids.
Take a little off the top each month for savings - think about setting up an automatic transfer from your paycheck.
2. How to Save
It's highly recommended to track the expenditures for the upcoming year to help achieve our goals, both business and personal. One of the best ways to track expenditures is to create a budget and plan of attack.
Tracking your spending isn't quite as hard as you think. A pencil and notebook will do the job, however, if you want more details, you can use software such as Money or Quicken. Or you can list your expenses using http://www.budgetworksheets.org/worksheet/family. This way you can see where the bulk of your money is going. Learn how to create and maintain a personal or family budget and use spending guidelines to help you find the right plan for you and for your family.
1. Getting Started:
Start by listing your fixed costs:
- Mortgage payment or rent
- Utilities
- Insurance
- Car payment and operating costs, including gas, oil changes and scheduled maintenance.
- Food, including what you spend to eat out.
- Clothing for you, you partner, and the kids.
Take a little off the top each month for savings - think about setting up an automatic transfer from your paycheck.
2. How to Save
- The biggest area we can cut back on in our home budget is usually spending too much on food, especially restaurant meals. Make restaurant trips an occasional treat - not a substitute for preparing a meal at home.
- Install a programmable thermostat that flips the heat on each morning, backs off during the day when you're at work, drops it to 55 degrees or so overnight.
- In the summer, turn off the air conditioning when you're away.
- Grab store coupons at the mall for mundane things you plan to buy. Many Internet sites now offer printable coupons.
- Renting DVDs is cheaper than trekking to the cinemas. It is possible to buy your favorite movie on DVD for less than the price of two theater tickets.
3. Remember to include emergency and long term savings as an expense item in your budget. Putting money aside for an emergency fund for potential major expenses that may come such as losing a job, replacing as hot water heater or needing a new roof on your house.
Drafting a family budget is the easy part, sticking to it takes work. But if you track all your expenses within the framework of a realistic budget, you'll be able to manage your money and won't be living paycheck to paycheck. If you manage to save a significant amount of money, who knows you'll be able to go to that dream vacation you've been thinking of for a long time. All we need is a little discipline and we can make it work! Please see http://money.cnn.com/magazines/moneymag/money101/lesson2/index.htm for a more in-depth discussion on how to make an effective financial budget. Once you read these articles and follow the tips, it's a guarantee that you'll be a smart spender with some savings to spare.
Monday, December 19, 2011
Monday, December 12, 2011
How to Sell Your Home During Winter
Many people say that it's harder to sell a home in winter than in summer. But there are real advantages to selling during the cooler months. In winter time, there are fewer homes on the market, thus less competition from other sellers. Furthermore, you'll have more serious buyers during the winter months than any other season. A buyer(s) who is willing to brave the winter elements and subzero temperatures to view homes is often times very serious about purchasing their next home or investment property.
And don't worry, the things that lead people to make new home purchases - a new job, a growing family, up or downsizing happen all year round and there are still plenty of buyers out there.
However, be prepared to put a little effort into making your home more appealing at this time of the year. If you do it right, you can really make your house stand out.
1. Keep snow and ice at bay
Usually, when the buyer can't get in easily, the house won't sell. That means keeping sidewalk, walkways, driveways and front steps free of snow and ice. You want to show the buyer that your house is being well maintained. If you do not live in the house, hire a service to salt and shovel the driveway and walkways.
2. Keep it warm
Part of making a home inviting to an interested buyer involves making it feel warm and cozy. Buyers who come in and aren't comfortable won't stay long. Set the thermostat higher if you know people are coming to look at the home. Turning on a fireplace can give a very nice ambiance aside from making your home warm and cozy.
3. Get the Windows Washed
Unkempt and dirty windows can turn off buyers before they even enter a house. Make the windows squeaky clean - this will get a good impression from a buyer.
4. Play music softly in the background
Another way to make your house feel like a home is to play some soothing music during a showing. Choose something soft and inviting on the radio, and turn it down just enough so that you can hear it in the background.
5. Emphasize winter positives
Make sure to point out the advantages of living in your home during the inconvenient weather. Some homes can use winter as selling point. Is your house near a ski area? Do you have winter views? Is there a great sledding hill down the street? People want to hear about the winter perks they enjoy living in your
home.
6. Set up timers
If you're not at home often, put your indoor and outdoor lights on timers.
7. Give the home a nice aroma
The No. 1 favorite scent is 'chocolate chip cookies'. Other popular scents are cinnamon rolls, freshly baked bread, apple pie, apple cider or anything with vanilla, cinnamon or yeast.
Watch out for the bad smells too... pet smells, smoke and musty odors can cling to curtains and carpets. Make sure that you got rid of these smell before showing your home to your potential buyer.
8. Protect the floors
To protect your floors, put down rubber mats by the door for snowy boots; buy a few pairs of comfy one-size-fits all slippers from a department or discount store for visitors to wear while they view your home.
In January 2011, James Real Estate Team sold (9) houses in (11) consecutive days - not too bad for the slowest part of the year... Contact us today to take advantage of the Winter Season and to get your home SOLD in the least amount of time for the most amount of $$$ back in your pocket. If you or someone you know is interested in BUYING, please contact us to get the BEST DEALS currently on the market.
Please remember to tell a friend, co-worker, or family member about the James Real Estate Team. Best Wishes and Happy Holidays!!
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