In the last couple of months I have had a couple of buyers tell me they were not interested in pursuing short sales yet at the same time lamenting that most of the leftovers were foreclosures. To all the buyers out there that have similar feelings, I feel your pain! But, and that’s a big but at that – if you are planning on waiting for the inventory composition to change, you stand a very good chance of losing the advantage you currently enjoy in price and interest rates. It is no secret that the number of folks defaulting on their mortgages is increasing, not the other way around. Our local market is going to swell with short sales and inevitably, foreclosures.
In Sacramento County, there are currently 8,719 listings of which 3,201 are pending and 3,356 are short sales/short sale contingency. That leaves only 2.162 homes or 25% that are listed as active – of which 25% of those are foreclosures! What remains is less than 1500 homes in the entire county that would satisfy the aforementioned buyers! This is before we throw in their particular criteria. So what are the odds they will find a house before the interest rates go up? Remember, for every point increase in interest, it’s a 10% increase in the sales price.
I want all of my buyers to take advantage of this market if they can. In order to do so, you must keep an open mind, be flexible, and remain prepared to act quickly.
If you’re ready to buy your “home-sweet-home” – we are ready to help! That’s what we do – We assist clients in buying and selling their homes!! Contact Mike at 916-425-6066 or Pat at 916-956-8928. Reach us 24/7 at http://www.primohomesearch.com/ .
Friday, August 28, 2009
July Sacramento-Area MLS Housing Stats
For the third straight month, Sacramento County records a Single-Family home median sales price of $180,000. After a jump from April to May (7.7%) the figure has remained unchanged. Unlike past years, the current summer season has not shown much of a surge in sales.
There were 1,848 single family home sales in July, a 6% increase from the 1,744 sales of June. Year-to-year, the current figure is 6.6% below the 1,979 sales recorded last July. REO sales decreased 3.5% month-to-month, from 940 in June to 908 this month. REO Sales made up 49% of the total sales while short sales (16.8%) and equity sales (34%) rounded out the remainder of the total sales. Compared with last month, the amount of REO sales has declined (3.5%), while short sales and equity sales have increased (6.9% and 22.8%, respectively).
The median sales price is unchanged month-to-month, keeping the $180,000 figure from both May and June. Compared year-to-year, the current figure is 16.9% below the $216,500 of July 2008. The Total Listing Inventory declined from 5,339 to 5,327, a .6% change. Compared with last year, the Total Listing Inventory has also decreased (32.4%) from 7,880 to the current 5,327 listings. The Housing Market Supply figure dipped 6.5% from 3.1 months in June to the current 2.9 months. Compared with last year, this figure is down 27% from the 3.9 months of inventory in July 2008. This figure represents the amount of time – in months – it would take to deplete the total listing inventory given the current rate of sales. According to MetroList® MLS Data, the average home spent 49.5 days on market (from the time it was listed to the time escrow was opened) and was 1,674 square feet. Of the 1,848 sales this month, 184 (9.9%) had 2 bedrooms or less, 990 (53.5%) contained 3 bedrooms, 529 (28.6%) were 4 bedroom properties and 145 (7.8%) boasted 5+ bedrooms.
If you would like a copy of the Sacramento MLS July 2009 Statistics, drop us an email (michaeloday@greatwestgmac.com or patrickryan@greatwestgmac.com) or go to our website 24/7, http://www.primohomesearch.com/.
There were 1,848 single family home sales in July, a 6% increase from the 1,744 sales of June. Year-to-year, the current figure is 6.6% below the 1,979 sales recorded last July. REO sales decreased 3.5% month-to-month, from 940 in June to 908 this month. REO Sales made up 49% of the total sales while short sales (16.8%) and equity sales (34%) rounded out the remainder of the total sales. Compared with last month, the amount of REO sales has declined (3.5%), while short sales and equity sales have increased (6.9% and 22.8%, respectively).
The median sales price is unchanged month-to-month, keeping the $180,000 figure from both May and June. Compared year-to-year, the current figure is 16.9% below the $216,500 of July 2008. The Total Listing Inventory declined from 5,339 to 5,327, a .6% change. Compared with last year, the Total Listing Inventory has also decreased (32.4%) from 7,880 to the current 5,327 listings. The Housing Market Supply figure dipped 6.5% from 3.1 months in June to the current 2.9 months. Compared with last year, this figure is down 27% from the 3.9 months of inventory in July 2008. This figure represents the amount of time – in months – it would take to deplete the total listing inventory given the current rate of sales. According to MetroList® MLS Data, the average home spent 49.5 days on market (from the time it was listed to the time escrow was opened) and was 1,674 square feet. Of the 1,848 sales this month, 184 (9.9%) had 2 bedrooms or less, 990 (53.5%) contained 3 bedrooms, 529 (28.6%) were 4 bedroom properties and 145 (7.8%) boasted 5+ bedrooms.
If you would like a copy of the Sacramento MLS July 2009 Statistics, drop us an email (michaeloday@greatwestgmac.com or patrickryan@greatwestgmac.com) or go to our website 24/7, http://www.primohomesearch.com/.
Friday, August 21, 2009
Average Buyers Can Afford Most Homes
Housing is remarkably affordable these days.
A family earning the nation’s median income of $64,000 a year could afford to buy 72.3 percent of all homes sold in the United States during the second quarter of 2009, according to the National Association of Home Builders and Wells Fargo.
Sellers are the ones who are paying the price. More than 30 percent of all homes sold during the second quarter sold for less than the sellers paid originally, according to Zillow.com.
A significant percentage of owners who bought within the past five years and sold during the quarter lost money on the deal, according to Stan Humphries, Zillow's vice president in charge of data and analytics.
[Editor's note: Although discussion of trends on a national level can be useful, conditions in a local market can be vastly different from what's happening statistically on a national level. For that reason, conditions for owners who've bought in the last five years might or might not resemble what analysts are seeing statistically on a national basis.]
Source: CNNMoney.com (08/19/2009)
For further information please contact Pat at patrickryan@greatwestgmac.com 916-956-8928 or Mike at michaeloday@greatwestgmac.com 916-425-6066 or our website, http://www.primohomesearch.com/
A family earning the nation’s median income of $64,000 a year could afford to buy 72.3 percent of all homes sold in the United States during the second quarter of 2009, according to the National Association of Home Builders and Wells Fargo.
Sellers are the ones who are paying the price. More than 30 percent of all homes sold during the second quarter sold for less than the sellers paid originally, according to Zillow.com.
A significant percentage of owners who bought within the past five years and sold during the quarter lost money on the deal, according to Stan Humphries, Zillow's vice president in charge of data and analytics.
[Editor's note: Although discussion of trends on a national level can be useful, conditions in a local market can be vastly different from what's happening statistically on a national level. For that reason, conditions for owners who've bought in the last five years might or might not resemble what analysts are seeing statistically on a national basis.]
Source: CNNMoney.com (08/19/2009)
For further information please contact Pat at patrickryan@greatwestgmac.com 916-956-8928 or Mike at michaeloday@greatwestgmac.com 916-425-6066 or our website, http://www.primohomesearch.com/
FHA Program Offers Purchase, Renovation Aid
The Federal Housing Administration is encouraging use of its little-known 203(k) loan program.
The 203(k) lets an owner-occupant borrow money for both the purchase and renovation in one loan, and put down only 3.5 percent.
The program requires the use of credentialed contractors and can include cosmetic improvements as well as major renovations like replacing plumbing or electrical. Completing the application process requires patience, says Nancy Hammock, an associate with RE/MAX Properties in Western Springs, Ill.
But in this lending environment, more homebuyers are finding 203(k)s worth the hassle. In fiscal 2008, the government insured about 6,700 of the 203(k) loans. This year, more than 11,000 loans have already been insured, according to the Office of the Comptroller of the Currency.
Source: Chicago Tribune, Mary Ellen Podmolik (08/14/2009)
For further information, contact Pat at patrickryan@greatwestgmac.com 916-956-8928 or Mike at michaeloday@greatwestgmac.com 916-425-6066 or our website 24/7, http://www.primohomesearch.com/
The 203(k) lets an owner-occupant borrow money for both the purchase and renovation in one loan, and put down only 3.5 percent.
The program requires the use of credentialed contractors and can include cosmetic improvements as well as major renovations like replacing plumbing or electrical. Completing the application process requires patience, says Nancy Hammock, an associate with RE/MAX Properties in Western Springs, Ill.
But in this lending environment, more homebuyers are finding 203(k)s worth the hassle. In fiscal 2008, the government insured about 6,700 of the 203(k) loans. This year, more than 11,000 loans have already been insured, according to the Office of the Comptroller of the Currency.
Source: Chicago Tribune, Mary Ellen Podmolik (08/14/2009)
For further information, contact Pat at patrickryan@greatwestgmac.com 916-956-8928 or Mike at michaeloday@greatwestgmac.com 916-425-6066 or our website 24/7, http://www.primohomesearch.com/
Buyers Rush to Beat Tax Credit Deadline
Real estate professionals report that first-time home buyers are flooding the sale market, pressed to finalize a deal before the federal government's $8,000 tax credit offer expires on Nov. 30.
Because mortgage approvals, residential inspections, and other steps in the buying process typically take about two months, buyers hoping to take advantage of the incentive will need to have a contract by the end of September.
The new flurry of activity now as house-hunters try to meet the deadline is triggering bidding wars and energizing the property market, which historically is slow at the end of summer. As a result, more homes are getting their full asking price.
Source: Chicago Tribune, Kathleen Lynn (08/14/09
Because mortgage approvals, residential inspections, and other steps in the buying process typically take about two months, buyers hoping to take advantage of the incentive will need to have a contract by the end of September.
The new flurry of activity now as house-hunters try to meet the deadline is triggering bidding wars and energizing the property market, which historically is slow at the end of summer. As a result, more homes are getting their full asking price.
Source: Chicago Tribune, Kathleen Lynn (08/14/09
Need to buy or sell your home? Contact Mike at 916-425-6066, michaeloday@greatwestgmac.com or Pat at 916-956-8928, patrickryan@greatwestgmac.com You can also visit our website at www.primohomesearch.com
Thursday, August 20, 2009
Start house-hunting now to Qualify for Tax Credit for First-Time Home Buyers
First-time home buyers had better get a move on if they hope to take advantage of the $8,000 federal tax credit. The window of opportunity is closing rapidly.
To qualify for the credit, any transaction involving a first-time buyer must close before midnight Nov. 30, when the valuable tax benefit expires. And because the buying and lending processes can be slow, you're going to need every bit of that time to close escrow.
Although the end of November might seem a long way off, Diane Dilzell, president of the New Jersey Assn. of Realtors, rightly points out that it takes weeks, if not months, to manage the logistics involved in a real estate transaction. It's also important to realize that any of a number of things can go haywire along the way.
"Unique circumstances can be encountered in any transaction, so it is important to account for those factors," said Dilzell, a broker at Pinnacle Realtors in Bedminster, N.J. "Since numerous third parties are involved, delays can be expected no matter how swiftly you act".
Another complicating factor: closed offices during the Thanksgiving holiday. With Thanksgiving this year falling on Nov. 26, that removes four days right before the deadline.
Undoubtedly, some escrow agents will scrap vacation plans to handle what is expected to be a crush of settlements. But that highlights yet another potential pitfall: There may be so many buyers trying to close at the last minute that there might not be enough room for them all.
Moreover, if you're banking on Congress to extend the tax credit or possibly even expand it, the odds are against you, at least right now.
Even though there's always a chance that lawmakers will do the unexpected, House and Senate leaders have said they will not take up any expiring provisions until they have completed work on healthcare-reform legislation. Moreover, with many signs indicating that the moribund market is starting to awaken, many legislators might decide that housing no longer needs a shot in the arm.
And don't expect to sneak a Dec. 1 closing past the Internal Revenue Service either. That's fraud, and the nation's tax collector has any number of sophisticated screening tools to quickly identify returns that may contain fraudulent claims. What's more, the IRS has vowed to go after taxpayers who try to pull a fast one. "We will vigorously pursue anyone who falsely tries to claim this or any other tax credit or deduction," says Eileen Mayer, the agency's chief criminal investigator.
Buyers with specific questions about the tax credit should consult with a qualified tax advisor.
But here's a brief rundown of the rules.
A first-timer is defined as anyone who has not owned a principal residence during the three years immediately before the purchase. The house doesn't qualify for the credit, though, if the buyer sells it before the end of the year.
Vacation homes and investment properties do not qualify; only main residences, new or resale, which can be a single-family house, town house, condominium, manufactured (or mobile) home or even a houseboat. If you hire a contractor to build the house rather than buy from a builder, the house is still treated as having been purchased.
Purchases must be arm's-length transactions. The seller cannot be a parent, grandparent, child, grandchild or spouse. Legal residents who file U.S. tax returns qualify for the credit, but those who are undocumented immigrants or nonresidents do not.
Married people filing as such cannot claim the credit if either spouse has owned a main residence within the last three years, but unmarried joint purchasers -- say, a parent and his son -- may allocate the credit in any way they see fit as long as it does not exceed the $8,000 maximum.
Speaking of maximum, the tax credit is equal to 10% of the purchase price up to $8,000. But there are income limits. For single taxpayers, the ceiling is $75,000; for married taxpayers filing jointly, it is $150,000. For those with modified adjusted gross incomes above those limits, the tax credit is reduced on a sliding-scale basis to zero when the income exceeds $95,000 for single payers and $170,000 for married payers.
To assist would-be buyers who need help with down-payment and closing costs, the government will allow those who finance their purchases with a federally insured loan to apply their anticipated credit immediately toward the transaction rather than waiting until they file their 2009 taxes to receive a refund.
Under guidelines announced by the Federal Housing Administration, nonprofits and FHA-approved lenders are permitted to make short-term loans to qualified borrowers in the amount they would otherwise receive as a refund. The law permits taxpayers to treat purchases that take place this year as though they occurred on Dec. 31, 2008.
You can apply the tax credit against your 2008 return if that will bring you the largest credit amount (depending on your modified adjusted gross income). To do so, you must file an amended return for 2008. By Lew Sichelman
To qualify for the credit, any transaction involving a first-time buyer must close before midnight Nov. 30, when the valuable tax benefit expires. And because the buying and lending processes can be slow, you're going to need every bit of that time to close escrow.
Although the end of November might seem a long way off, Diane Dilzell, president of the New Jersey Assn. of Realtors, rightly points out that it takes weeks, if not months, to manage the logistics involved in a real estate transaction. It's also important to realize that any of a number of things can go haywire along the way.
"Unique circumstances can be encountered in any transaction, so it is important to account for those factors," said Dilzell, a broker at Pinnacle Realtors in Bedminster, N.J. "Since numerous third parties are involved, delays can be expected no matter how swiftly you act".
Another complicating factor: closed offices during the Thanksgiving holiday. With Thanksgiving this year falling on Nov. 26, that removes four days right before the deadline.
Undoubtedly, some escrow agents will scrap vacation plans to handle what is expected to be a crush of settlements. But that highlights yet another potential pitfall: There may be so many buyers trying to close at the last minute that there might not be enough room for them all.
Moreover, if you're banking on Congress to extend the tax credit or possibly even expand it, the odds are against you, at least right now.
Even though there's always a chance that lawmakers will do the unexpected, House and Senate leaders have said they will not take up any expiring provisions until they have completed work on healthcare-reform legislation. Moreover, with many signs indicating that the moribund market is starting to awaken, many legislators might decide that housing no longer needs a shot in the arm.
And don't expect to sneak a Dec. 1 closing past the Internal Revenue Service either. That's fraud, and the nation's tax collector has any number of sophisticated screening tools to quickly identify returns that may contain fraudulent claims. What's more, the IRS has vowed to go after taxpayers who try to pull a fast one. "We will vigorously pursue anyone who falsely tries to claim this or any other tax credit or deduction," says Eileen Mayer, the agency's chief criminal investigator.
Buyers with specific questions about the tax credit should consult with a qualified tax advisor.
But here's a brief rundown of the rules.
A first-timer is defined as anyone who has not owned a principal residence during the three years immediately before the purchase. The house doesn't qualify for the credit, though, if the buyer sells it before the end of the year.
Vacation homes and investment properties do not qualify; only main residences, new or resale, which can be a single-family house, town house, condominium, manufactured (or mobile) home or even a houseboat. If you hire a contractor to build the house rather than buy from a builder, the house is still treated as having been purchased.
Purchases must be arm's-length transactions. The seller cannot be a parent, grandparent, child, grandchild or spouse. Legal residents who file U.S. tax returns qualify for the credit, but those who are undocumented immigrants or nonresidents do not.
Married people filing as such cannot claim the credit if either spouse has owned a main residence within the last three years, but unmarried joint purchasers -- say, a parent and his son -- may allocate the credit in any way they see fit as long as it does not exceed the $8,000 maximum.
Speaking of maximum, the tax credit is equal to 10% of the purchase price up to $8,000. But there are income limits. For single taxpayers, the ceiling is $75,000; for married taxpayers filing jointly, it is $150,000. For those with modified adjusted gross incomes above those limits, the tax credit is reduced on a sliding-scale basis to zero when the income exceeds $95,000 for single payers and $170,000 for married payers.
To assist would-be buyers who need help with down-payment and closing costs, the government will allow those who finance their purchases with a federally insured loan to apply their anticipated credit immediately toward the transaction rather than waiting until they file their 2009 taxes to receive a refund.
Under guidelines announced by the Federal Housing Administration, nonprofits and FHA-approved lenders are permitted to make short-term loans to qualified borrowers in the amount they would otherwise receive as a refund. The law permits taxpayers to treat purchases that take place this year as though they occurred on Dec. 31, 2008.
You can apply the tax credit against your 2008 return if that will bring you the largest credit amount (depending on your modified adjusted gross income). To do so, you must file an amended return for 2008. By Lew Sichelman
Contact Pat at patrickryan@greatwestgmac.com 916-956-8928 or Mike at michaeloday@greatwestgmac.com 916-425-6066 or 24/7 at our website, www.primohomesearch.com
California Foreclosure Activity
Click on Image to Enlarge Contact Pat at patrickryan@greatwestgmac.com 916-956-8928 or Mike at michaeloday@greatwestgmac.com 916-425-6066 or 24/7 at our website, www.primohomesearch.com
Looks Like Rain in California: ForeclosureRadar
The overall forecast for the California housing market remains bleak. The clouds had yet to break in July, but look heavy with a record volume of foreclosure sales waiting to flood the market.
The volume of foreclosures scheduled for sale in California reached a record high last month, according to ForeclosureRadar’s July report, which tracks each California foreclosure.
Notices of default remained flat and foreclosure sales dipped 22.7%, but notices of trustee sale jumped 31.6%. The image is of a steady march into the foreclosure process and a slowed trickle out of it, resulting in a backlog of scheduled sales in the month.
The number of properties scheduled for foreclosure sale rose to a record high of 124,874 in July, nearly double the level seen during the foreclosure peak last year, according to ForeclosureRadar.
Year-over-year, default filings are up 11.9%, notices of trustee sale rose 0.7% and foreclosure auction sales plummeted 40.1%. July 2009’s 17,239 foreclosure auction sales bore a combined loan value of $8.08bn.
ForeclosureRadar also saw a record number of foreclosure cancellations — 10,789 — in the month, 24.8% more than June and 86.3% more than July 2008. The data provider noted, however, that as a percentage of foreclosures scheduled for sale, the rate of cancellation had changed little from previous months.
“It is our understanding that foreclosures are not cancelled until the completion of [the Home Affordable Modification three-month] trial period,” ForeclosureRadar said. “As such, we believe monitoring the cancellation of scheduled foreclosures should provide some insight into the effectiveness of this program, as successful trials should result in cancelled foreclosures.”
The volume of foreclosures scheduled for sale in California reached a record high last month, according to ForeclosureRadar’s July report, which tracks each California foreclosure.
Notices of default remained flat and foreclosure sales dipped 22.7%, but notices of trustee sale jumped 31.6%. The image is of a steady march into the foreclosure process and a slowed trickle out of it, resulting in a backlog of scheduled sales in the month.
The number of properties scheduled for foreclosure sale rose to a record high of 124,874 in July, nearly double the level seen during the foreclosure peak last year, according to ForeclosureRadar.
Year-over-year, default filings are up 11.9%, notices of trustee sale rose 0.7% and foreclosure auction sales plummeted 40.1%. July 2009’s 17,239 foreclosure auction sales bore a combined loan value of $8.08bn.
ForeclosureRadar also saw a record number of foreclosure cancellations — 10,789 — in the month, 24.8% more than June and 86.3% more than July 2008. The data provider noted, however, that as a percentage of foreclosures scheduled for sale, the rate of cancellation had changed little from previous months.
“It is our understanding that foreclosures are not cancelled until the completion of [the Home Affordable Modification three-month] trial period,” ForeclosureRadar said. “As such, we believe monitoring the cancellation of scheduled foreclosures should provide some insight into the effectiveness of this program, as successful trials should result in cancelled foreclosures.”
Information provided by HousingWire.com - Diana Golobay
Contact Pat at patrickryan@greatwestgmac.com 916-956-8928 or Mike at michaeloday@greatwestgmac.com 916-425-6066 or 24/7 at our website, www.primohomesearch.com
Refinancing Borrowers Choose Shorter-Term Fixed-Rate Loans
RISMEDIA, August 18, 2009-Freddie Mac recently announced that in the second quarter of 2009, refinancing borrowers overwhelmingly chose fixed-rate loans, regardless of whether their original loan was an adjustable-rate mortgage (ARM) or fixed.
Ninety-nine percent of prime borrowers who originally had a conforming ARM selected a new conforming fixed-rate mortgage when they refinanced, up slightly from a revised share of 98% in the first quarter. While 30-year fixed-rate mortgages tended to be the preferred new product, 15-year fixed-rate mortgages gained favor among refinancers, with roughly a 2 percentage point increase in the proportion choosing this product for original ARM borrowers and nearly a 4 percentage point increase among original fixed-rate borrowers.
“When interest rates hit very low levels for fixed-rate mortgages, borrowers often take this opportunity to lower their interest rate and shorten their loan term,” said Frank Nothaft, vice president and chief economist for Freddie Mac.
“In April, mortgage rates reached new lows for both 15-year and 30-year fixed-rate loans in Freddie Mac’s Primary Mortgage Market Survey®. Many borrowers could shorten their loan terms without having a big increase in their mortgage payments, thereby building equity faster, reducing the total interest paid over the life of the loan, and ensuring their loan is largely paid off by their retirement.
“Both refinancing borrowers and families buying homes are shying away from ARMs in the current environment. During the second quarter, 5/1 hybrid ARMs carried an average rate of 4.9 percent while 30-year fixed mortgage rates were only at 5.0 percent on average in our survey. The small benefit from the lower rate is not enticing enough to cover the risk that rates will rise in the future from these historic lows.”
These estimates come from a sample of properties on which Freddie Mac has funded at least two successive loans and the latest loan is for refinance rather than for home purchase.
For more information, visit http://www.freddiemac.com/.
Contact Pat at patrickryan@greatwestgmac.com 916-956-8928 or Mike at michaeloday@greatwestgmac.com 916-425-6066 or 24/7 at our website, www.primohomesearch.com
Ninety-nine percent of prime borrowers who originally had a conforming ARM selected a new conforming fixed-rate mortgage when they refinanced, up slightly from a revised share of 98% in the first quarter. While 30-year fixed-rate mortgages tended to be the preferred new product, 15-year fixed-rate mortgages gained favor among refinancers, with roughly a 2 percentage point increase in the proportion choosing this product for original ARM borrowers and nearly a 4 percentage point increase among original fixed-rate borrowers.
“When interest rates hit very low levels for fixed-rate mortgages, borrowers often take this opportunity to lower their interest rate and shorten their loan term,” said Frank Nothaft, vice president and chief economist for Freddie Mac.
“In April, mortgage rates reached new lows for both 15-year and 30-year fixed-rate loans in Freddie Mac’s Primary Mortgage Market Survey®. Many borrowers could shorten their loan terms without having a big increase in their mortgage payments, thereby building equity faster, reducing the total interest paid over the life of the loan, and ensuring their loan is largely paid off by their retirement.
“Both refinancing borrowers and families buying homes are shying away from ARMs in the current environment. During the second quarter, 5/1 hybrid ARMs carried an average rate of 4.9 percent while 30-year fixed mortgage rates were only at 5.0 percent on average in our survey. The small benefit from the lower rate is not enticing enough to cover the risk that rates will rise in the future from these historic lows.”
These estimates come from a sample of properties on which Freddie Mac has funded at least two successive loans and the latest loan is for refinance rather than for home purchase.
For more information, visit http://www.freddiemac.com/.
Contact Pat at patrickryan@greatwestgmac.com 916-956-8928 or Mike at michaeloday@greatwestgmac.com 916-425-6066 or 24/7 at our website, www.primohomesearch.com
Thursday, August 6, 2009
PrimoHomeSearch Fast Facts
Calif. median home price - June 09: $274,740 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region June 09: Santa Barbara So. Coast
$850,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region June 09: High Desert
$108,600 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - First Quarter 2009: 69 percent (Source: C.A.R.)
Mortgage rates - week ending 7/30/09 30-yr. fixed: 5.25% Fees/points: 0.7% 15-yr. fixed: 4.69% Fees/points: 0.7% 1-yr. adjustable: 4.80% Fees/points: 0.5% (Source: Freddie Mac)
Contact Pat at patrickryan@greatwestgmac.com 916-956-8928 or Mike at michaeloday@greatwestgmac.com 916-425-6066 or 24/7 at our website, www.primohomesearch.com
Calif. highest median home price by C.A.R. region June 09: Santa Barbara So. Coast
$850,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region June 09: High Desert
$108,600 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - First Quarter 2009: 69 percent (Source: C.A.R.)
Mortgage rates - week ending 7/30/09 30-yr. fixed: 5.25% Fees/points: 0.7% 15-yr. fixed: 4.69% Fees/points: 0.7% 1-yr. adjustable: 4.80% Fees/points: 0.5% (Source: Freddie Mac)
Contact Pat at patrickryan@greatwestgmac.com 916-956-8928 or Mike at michaeloday@greatwestgmac.com 916-425-6066 or 24/7 at our website, www.primohomesearch.com
HUD announces new FHA-Making Home Affordable loan modification guidelines
The U.S. Dept. of Housing and Urban Development (HUD) Secretary Shaun Donovan recently announced that the Federal Housing Administration (FHA) has implemented changes to its loan modification program to ensure consistency with the Obama Administration's Home Affordable Modification Program. By August 15, FHA borrowers will be able to significantly reduce their monthly mortgage payments by seeking a loan modification through their current mortgage company or loan servicer under the new FHA-Home Affordable Modification Program (FHA-HAMP).
FHA expects all servicers to implement the changes by August 15. The program permanently reduces a family's monthly mortgage payment through the use of a partial claim, which defers the repayment of mortgage principal through an interest-free subordinate mortgage that is not due until the first mortgage is paid off.
The program will allow HUD to bring the borrower's payment down to an affordable level. This will be accomplished by bringing the mortgage current, buying down the loan by up to 30 percent of the unpaid principal balance and deferring these amounts in a partial claim.
"We're bringing another important tool to the table to help struggling families who are desperate to keep their homes," said Donovan. "Tens of thousands of FHA borrowers will now be able to modify their mortgages in the same manner as so many others who are taking advantage of the administration’s Making Home Affordable program. This is just the latest tool we are providing to help homeowners prevent foreclosures through the Making Home Affordable program. Earlier this month we announced an expansion of the Home Affordable Refinance Program to borrowers who are up to 125 percent underwater. Together, these actions will significantly increase the help available to homeowners."
Contact Pat at patrickryan@greatwestgmac.com 916-956-8928 or Mike at michaeloday@greatwestgmac.com 916-425-6066 or 24/7 at our website, www.primohomesearch.com
FHA expects all servicers to implement the changes by August 15. The program permanently reduces a family's monthly mortgage payment through the use of a partial claim, which defers the repayment of mortgage principal through an interest-free subordinate mortgage that is not due until the first mortgage is paid off.
The program will allow HUD to bring the borrower's payment down to an affordable level. This will be accomplished by bringing the mortgage current, buying down the loan by up to 30 percent of the unpaid principal balance and deferring these amounts in a partial claim.
"We're bringing another important tool to the table to help struggling families who are desperate to keep their homes," said Donovan. "Tens of thousands of FHA borrowers will now be able to modify their mortgages in the same manner as so many others who are taking advantage of the administration’s Making Home Affordable program. This is just the latest tool we are providing to help homeowners prevent foreclosures through the Making Home Affordable program. Earlier this month we announced an expansion of the Home Affordable Refinance Program to borrowers who are up to 125 percent underwater. Together, these actions will significantly increase the help available to homeowners."
Contact Pat at patrickryan@greatwestgmac.com 916-956-8928 or Mike at michaeloday@greatwestgmac.com 916-425-6066 or 24/7 at our website, www.primohomesearch.com
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