Foreclosure Program Extended to 2016

Foreclosure Program Extended to 2016

Administration announced Thursday that it will extend its Making Home Affordable Program to help homeowners avoid foreclosure, as well as use Treasury funds to ramp up construction of affordable rental housing. The Making Home Affordable Program will now be extended through December 2016. More than 1.3 million home owners have already used program to modify their mortgages. Although nationwide foreclosure rates have started dropping, millions of families are still struggling. Different estimates of underwater households range from 6.5 million to 9.7 million at the end of 2013. Foreclosure Market Report. 

Builder Eyes Home-Rental Market

Builder Eyes Home-Rental Market

As Home Sales Remain Restrained: Lennar Corp., one of the nation's largest 

home builders, is  "considering" a move to build homes intended to rent if first-time home buyers continue to be reluctant, said the builder's chief executive, in a quarterly conference call Thursday. Miller says he doesn't expect mortgage qualification standards to ease enough anytime soon for more first-time home buyers to come off the sidelines. As such, he says Lennar is eyeing the home rental market as a way to ramp up business until they do. We Ask Will Millennials Break Into Ownership? 

Mortgage Rates Slide

Mortgage Rates Slide

Mortgage interest rates were on the rise at this time last year on speculation that the Federal Reserve might soon start tapering its bond purchases. Contrary to what happened then, rates have remained relatively calm. Nearly a year after shooting up past 4 percent, the 30-year average fixed mortgage rate is now coming back down toward the same mark, Adjustable rates also slipped this week. As mortgage rate now coming back down, More Americans Squeezed by Housing Costs, read more.

May/June 2014 Housing Market Show some Improvement

May/June 2014 Housing Market Show some Improvement

The housing market is starting to show some improvement after a slow start to the year: 'Home price improvements have contributed to consumers' household wealth, but overall growth in the housing market pulled back in the first quarter. More recent housing indicators were mixed, with only moderate improvement, “While the recent up tick in rates may have a little to do with a drop in mortgage application volume, purchase activity in many areas nationwide continues to suffer from a lack of inventory and confidence. Still, the market did receive some good news this week: Existing-home sales were up 4.9 percent in May -- the highest monthly rise since 2011. 

Short Sales 'Drop' Triming House Inventory

Short Sales 'Drop' Trims House Inventory

Underwater Owners Refusing Short Sales: Real estate professionals say that their underwater sellers are less likely to consider a short sale, even if faced with foreclosure. Short sales have fallen sharply over the last few months after the expiration of a key tax break at the end of last year. In May, short sales accounted for about 3 percent of existing-home sales transactions. That's down from 19.7 percent in January 2012, according to data from Black Knight Financial Services. Underwater sellers remove their properties from the market in January and February. Also, rising home prices have made lenders less likely to grant a short sale, The Wall Street Journal reports, read more.

Salt Lake City Housing Market rebounds by 100%

Salt Lake City Housing Market rebounds by 100%
Home Prices Increase 6% in May: In the May 2014 Residential & Foreclosure Sales 

Report that U.S. properties sold at an estimated annual pace of 5.1 million in May. The pace of sold homes remained virtually unchanged from April, with a small increase of less than 1 percent from May 2013. Higher price ranges are seeing a growth and an increase in market share. Prices in every price range above $200,000 increased as a share of total sales, both monthly and yearly. Increases were 'generally higher' in the higher price ranges. Watch Nineveh Dinha talks with Grant Whitaker from the Utah Housing Corporation about how the Salt Lake City Housing Market has made a 100-percent rebound.

Mortgages Suffer-Misconception about Down Payments

Mortgages Suffer-Misconception about Down Payments
Down Payments: Today's Most Persistent Misconception about Mortgages, There's a pervasive view held by younger consumers when considering whether to purchase a home or not. Consumers persistently overestimate the size of a down payment they need in order to finance a home, and this lack of education is harming the housing market. With mortgage rates still near historic lows, new home ownership opportunities are poised to grow. The challenge is finding those who don't realize they can afford to finance a home and showing them how they can, see rates and read more.

Cash Deals Decline, Remain King Lower-Priced Home

Cash Deals Decline, Remain King Lower-Priced Home

Home purchases made with cash are on the decline across the country, according 

 to Zillow, but cash sales still make up a significant portion of the lower-priced home market in many areas. Cash sales declined year-over-year in the first quarter in 102 of the 126 metro areas. Chalked up the decline to waning investor demand and a resurgence of traditional buyers in the market. It's heartening to see more buyers armed with traditional financing begin to enter the market, said Stan Humphries. 'This is a critical step on the way back to a more normal, balanced housing market.'  Also May shows a slight increase in mortgage closing rates, read more.

Tight Inventory Deflates Home-Sales Expectations

Tight Inventory Deflates Home-Sales 

How much further will home prices and rents have to rise to motivate more home owners to sell? Chief Economist Frank Nothaft asks the question in the mortgage giant's U.S. Economic and Housing Market Outlook for June. We're nearly halfway through the year, and single-family housing remains weaker than we projected six months ago, while multifamily appears to be right on track. With vacancy rates moving back in line with historical averages - even falling below historical averages in some markets - and for-sale inventories remaining tight. Still mortgage rates will remain low.

Is Automated Appraisal the Next Right Step?

Is Automated Appraisal the Next Right Step?

It is not news to anyone in the mortgage industry that the market has changed dramatically in the last decade. Back then, volume was high and the focus was on closing as many loans as possible. Thorough review of the collateral was not the highest priority in loan decision or risk management as the prevailing sentiment was that appreciation would offset inaccuracies in value and mitigate any potential loss. So, why slow the process just to dissect an appraisal? Well, we all learned why thoughtful analysis of the appraisal is crucial, not just to the lending decision, but also to maintaining the financial health and perhaps the survival of the organization, see the Innovation.

Rent Rise, At a Subdued Pace

Rent Rise, At a Subdued Pace

Rents continued to rise nationwide in the first quarter of this year — but at the slowest pace in the last 12 months. Landlords are finding it difficult to raise rents by more than 5% to 10% a year, according to a newly released report. With median wages not rising appreciably, it will be more of a challenge for landlords to raise rents moving forward. Asking rents and effective rents bumped up 0.5 percent and 0.6 percent, respectively, in the first quarter. Reis projects that effective-rent growth will be slightly stronger this year compared to last year. This amount of new supply presents competition that may further dampen the ability of landlords of existing buildings to raise rents, read more.

'Get Second Chance' What is 'Boomerang' Buyers?

'Get Second Chance' What is 'Boomerang' Buyers?

About 7.2 million homes have been lost to foreclosure or short sale since the housing crash began, according to housing data. That has forced millions of former home owners into 

renting, as they work to rebuild their credit. A government program launched last summer by the Federal Housing Administration is helping these former home owners step back into home ownership in as little as a year after a foreclosure or short sale. The FHA’s Back to Work program allows them to qualify for low interest rates with a minimum of a 3.5 percent down payment, read more

Ways to Live Well and Retire in Style

Ways to Live Well and Retire in Style
Benjamin Franklin had it right—a penny saved is one you don’t have to earn. For retirement, that means if you can manage to save enough money on your expenses, you can survive—and maybe have enough to indulge in a few luxuries. Move to a smaller house Real pennypinchers don’t waste money heating/cooling, painting, maintaining, and paying taxes on a house that is bigger than their needs. Buy a reliable car, preferably second-hand. Buy a basic model, and keep it until big things start breaking on it. If you have two cars, get rid of the gas hog. Move to a less expensive state. Hope fully one with reasonable real estate costs along with lower income and property taxes. Here are some ideas for saving money in retirement.

VA Home Loans Gain Popularity

VA Home Loans Gain Popularity

As FHA Costs Rise and Mortgage Rates Bumps Up this week: The Veterans Affairs loan program – which has long been saddled with low participation rates – is garnering more attention.For fiscal year 2013, VA lenders originated a record 629,300 single-family loans. More military members are reaching for VA loans at a time when a sharp increase in Federal Housing Administration mortgage insurance premiums is making the VA more competitive.Real estate professionals and lenders have stepped up efforts to educate military members about the availability of VA loans. Do you Qualify for a VA's no down payment home loan program:

Are Foreclosures in the Rear-View Mirror

Are Foreclosures in the Rear-View Mirror

Foreclosure Activity Drops to 8-Year Lows: Foreclosure starts, filings, and auctions all fell to nearly eight-year lows last month, RealtyTrac reported this week.

Lenders also repossessed fewer homes in May, down 27 percent from a year ago, and repossessions were at the lowest monthly levels since July 2007.'This is showing that foreclosures are fading further into the rear-view mirror in most places. 'This is good news for the housing market. ... I think the numbers will continue to drop and could flat line by early next year.” See  U.S. Foreclosure Report May 2014: 

Title Defects Can Haunt Transactions

Title Defects Can Haunt Transactions

“Property records hold the key to ensuring a clear title conveyance and reducing the riskof buyback or inability to foreclose. Title defects have become a major cause for concern within the real estate market in recent years, “which some feel cause wrongful foreclosures and others feel contribute to stagnation of what would otherwise be a smooth transition of assets within the secondary market. Other common problems surfacing are previous liens and other encumbrances that have not been removed; the title needs to be free of encumbrances to be marketable. Things You Might Not Know About Title Insurance:

Home Warranties Help Homes Sell faster-Higher

Home Warranties Help Homes Sell faster-Higher

New Study: Home Warranties Increase Home Sale Prices, Reduce Length 

on the Market for Owners. Homes covered by a protection plan sell faster and for more money than those without one.According to the most recent look at home sale prices nationally, homes sold with a protection plan spend, on average, 11 fewer days on the market. Findings also show that homes on average sold for about $2,300 more when covered by a plan. The ability to transfer a home warranty to new owners also helps create added incentives for buyers. See the VALUE OF HOME WARRANTY PROTECTION

Expense Buyers Underestimate

Expense Buyers Underestimate

PMI has had a definitive impact on many home buyers - including making them rethink or delay the purchase of a home in light of not being able to meet monthly mortgage payments. Borrowers are required to get PMI if the loan exceeds 80 percent of the home’s value. The insurance protects the lender in case the borrower defaults on their loan. Many buyers say that PMI has an impact on their home purchasing decisions. If you're thinking of buying a house, you definitely want to make sure your credit is in good shape. Mortgage approval relies on a lot more than your credit standing, but its importance shouldn't be overlooked, read more.

Homes See Positive Equity Why are People Moving

Homes See Positive Equity Why are People Moving
The first quarter of 2014, focusing specifically on homes with negative equity. The company found that more than 300,000 homes returned to positive equity in the quarter, bringing the total number of mortgaged residential properties with equity to more than 43 million. The company's analysis found that roughly 6.3 million properties, or 12.7 percent of all residential properties with a mortgage, had negative equity as of the first quarter of 2014. One in five borrowers have less than 10 percent equity in their property." See Why are People Moving

Salt Lake City,Utah List of Most-Improving Cities

Salt Lake City,Utah List of Most-Improving Cities

Perhaps the best way to describe economic growth in U.S. metro markets is: it’s getting there, slowly but surely. June 5, 2014 - Of the approximately 350 metro markets nationwide, 56 returned to or exceeded their last normal levels of economic and housing activity, according to Leading Markets Index (LMI), released today. This represents a net gain of nine metros year over year. This is nine more metros than a year ago,suggesting that even though the lion's share of metros in the U.S. are still under performing, more are coming back to stable ground. See more Major metros at the top of the list.

Mortgage Rates Ending a Five-Week Downward Streak

Mortgage Rates Ending a Five-Week Downward Streak

Mortgage Rates Snap Five-Week Decline, fixed mortgage rates finally pulled up this week on signs the economy may be getting back on its feet after starting the year off weak.

The average 30-year fixed rate at 4.14 percent (0.5 point) for the week ending June 5, up from last week's average 4.12 percent. A year ago, the 30-year fixed-rate mortgage (FRM) was 3.91 percent and rising. Contrary to Freddie, Bankrate also saw an increase in adjustable rates. June Is National Homeownership Month!: With residential mortgages hitting their lowest interest rates of the year, now is a great time to start realizing the benefits of homeownership. Owning a home allows you the freedom to adapt your living space to your tastes and lifestyle and gives you a feeling of permanence in your community, see rates.

Home Prices Continue Upward Climb

Home Prices Continue Upward Climb

Home prices are continuing to rise as we head into the summer months. The purchase market continues to suffer from a dearth of inventory which we expect will continue to drive prices up over the year.' The company found that home prices, including distressed sales, increased 10.5 percent in April from the previous year. The company projects home prices will increase by one percent month-over-month in May. Furthermore, national home prices are expected to rise from April 2014 to April 2015, read more.

Commercial Properties Converted into Homes

Commercial Properties Converted into Homes

Home buyers across the country are converting warehouses and commercial buildings into high-end residences. An emerging trend is seeing more home buyers turning warehouses and other commercial buildings into unique residences that offer both historic charm and modern conveniences. The conversions also often afford the owners a spacious urban location and lifestyle. While such projects are costly, and the process is challenging from the construction perspective, the owners are rewarded with a residence that is full of character, see video.

2 Million Borrowers Face Mortgage Rate Resets

2 Million Borrowers Face Mortgage Rate Resets

About 2 million borrowers with modified mortgages are facing interest rate hikes, according to Black Knight's April Mortgage Monitor Report. What's more, about 40 percent of those borrowers currently remain underwater, owing more on their mortgage than their home is currently worth. The lack of equity is one of the primary drivers of mortgage defaults and “these resets may indeed pose an increased risk in the years ahead," says Kostya Gradushy, Black Knight's manager of loan data and customer analytics. "We have seen a continual reduction in the number of underwater borrowers at the national level for some time now, but modified loans show a different picture." See Nationwide, the negative equity rate 

An Uptrend’ in Closing Sales Ahead

An Uptrend’ in Closing Sales Ahead

Overall, pending home sales nationwide rose 0.4 percent in April, but remain 9.2 percent 

below  year ago levels. "Higher inventory levels are giving buyers more choices, and a slight decline in mortgage interest rates this spring is raising prospective home buyers’ confidence," says  NAR’s chief economist. "An uptrend in closed sales is expected, although months will encounter a modest setback." Forecasts NAR has made the following projections with sales and home prices through 2015.Regional Snapshot