Posted by Annalisa Burgos | September 24, 2009
The economist behind one of the most widely watched measures of the residential housing market is not sure where home prices are headed.
I caught up with Robert Shiller (of the Standard & Poor’s/Case-Shiller Home Price Indices) at the “Distressed Real Estate Summit” in New York City, where he shared his insight with more than 700 real estate developers, investors and other professionals. Hear what he has to say:
Shiller told attendees that current government efforts seem “like a big bailout,” and rather, we should focus on setting up “the framework for new economic systems” and “create a liquid market for real estate.”
Shiller is founder and chief economist of investment management firm MacroMarkets and co-developed the methodology behind the S&P/Case-Shiller Home Price Indices, which track changes in home prices in 20 metropolitan regions across the United States. Each month, investors look to the data for insight into the housing market.
Posted by Annalisa Burgos | July 17, 2009
In this week’s vlog, we hear from San Diego real estate broker and blogger Kris Berg about her tips for buying and selling a home in today’s market.
Homebuying and selling resources on FrontDoor:
Posted by Annalisa Burgos | July 10, 2009
In this week’s vlog, I talk to real estate broker and attorney Tara-Nicholle Nelson about how homeowners who are struggling to make their mortgage payments can get their loans modified and avoid foreclosure.
You’ve heard about extending the loan, converting an ARM to a fixed rate mortgage, and reducing the interest rate, but what about loan forgiveness? Will the lender write off all or part of your loan? Do you need to hire a company or can you work directly with your lender and do it yourself?
Get more tips and advice about the loan modification process:
Posted by Annalisa Burgos | July 2, 2009
In this week’s vlog, find out why it’s important to get a pre-approval before you go house hunting. Some curious homebuyers will check out an open house or two before actually evaluating their financial situation, but this is actually one of the top 10 homebuying mistakes that can cost you.
Plus… Backyard. Outdoor kitchen. Outdoor living room. Pool. Deck. Find out which summer season home updates pay off when you sell.
Posted by Annalisa Burgos | June 19, 2009
I’m in Washington, D.C., for a conference of the National Association of Real Estate Editors and got to hear from some of the key players in the federal government’s housing recovery efforts, including Housing and Urban Development (HUD) Secretary Shaun Donovan, Federal Housing Finance Agency Director James Lockhart and some of the congressional representatives on the banking and housing committees. We heard a lot about the Obama administration’s refinance and loan modification programs as well as the massive overhaul of the financial regulatory system.
Some of the notable stats from Thursday’s speakers:
–40% of those displaced by the foreclosure crisis are renters.
–16 mortgage servicers are participating in the federal government’s loan mod program. They handle about 80% of all mortgages.
–So far, 200,000 loan mod offers have been made under the federal program.
–Potential source of real estate growth is the rental market in college towns. That’s because each coming year, we’ll see a record number of high school graduates.
–Another potential demographic shift is the growing population of non-traditional households (”traditional” meaning a married couple with children).
Check out this video of HUD Secretary Shaun Donovan talking about the mission of Obama’s proposed Consumer Financial Protection Agency, a new watchdog agency that would protect consumers from the kind of predatory lending practices that got us into the current mortgage mess and foreclosure crisis.
Posted by Annalisa Burgos | June 12, 2009
With so much drama in the world, there’s no better time than now to step back and take a breath. It’s easy to get caught up with the stress and emotion of buying and selling a home. That’s why FrontDoor Insider Tara-Nicholle Nelson is sharing her solutions and strategies to deal with today’s frustrating real estate situations, like getting rejected for a mortgage or facing foreclosure after losing a job. It’s all in Tara’s Drama-Free Real Estate Guide at www.frontdoor.com/dramafree.
To spread the word about these great tips and advice, Tara and the FrontDoor team took it to the media — with the important message that now is not the time for consumers to panic (and it’s easy to with all the negative headlines), but rather they should be proactive.
Posted by Annalisa Burgos | June 4, 2009
We’ve all heard about the $8,000 tax credit for first-time homebuyers — the government’s carrot to spur buying and help reduce unsold inventory.
How it used to work: A first-time buyer would complete the homebuying process, file their tax return with the IRS in January and the credit would be applied to the taxes owed. If you don’t owe anything, you get the full credit.
How it works now: A new federal program will let you use the tax credit immediately — during closing. This is an even sweeter carrot, because the down payment and closing costs are typically the biggest obstacles to overcome when buying a home.
In today’s uncertain economy, people would rather hold on to their cash. With lenders charging higher fees, this program lightens the burden of closing costs. Average fees for a $200,000 mortgage in 2008 with a 20 percent down payment were $3,118, according to Bankrate.
The catch or two…: How much your credit will be depends on your income, tax-filing status and home price. You have to get a Federal Housing Administration (FHA) mortgage and put down at least 3.5 percent of the purchase price. Of course it doesn’t hurt to use the credit to boost your down payment, which could help lower your interest rate.
Also it’s important to note that like conventional loans that require private mortgage insurance (PMI) when the down payment is less than 20 percent, FHA loans require what’s called a mortgage insurance premium (MIP). With the FHA loan, you pay an up-front premium (1.75 percent of the loan) which is financed into the mortgage and a monthly premium for at least the first five years (0.50 percent to 0.55 percent).
The bottom line: Any time you can get money upfront as opposed to waiting for it, it’s a good thing. Too bad I still own a condo in Knoxville, or else I’d be all over this.
Posted by Annalisa Burgos | May 14, 2009
Unless you’re a seasoned real estate investor, most buyers are uncomfortable with approaching a homeowner who’s going through foreclosure and offering to buy their home. Rightfully so, since it’s a very difficult time, emotionally and financially, for the homeowner.
But it’s during this first stage of foreclosure where you can find the best bargains, often through a short sale. Try these helpful tips when dealing directly with the homeowner. Negotiations require patience and tact to avoid hang-ups and slammed doors.
In RealtyTrac’s April foreclosure market report, activity is up 32 percent from last year to another record-high level, mainly due to the first two stages of foreclosure: mortgage defaults and auctions. The third stage — bank repossessions or REOs — fell to their lowest level since March 2008, but RealtyTrac’s CEO James J. Saccacio expects a spike in REOs as more loans “move through the foreclosure process over the next few months.” Not surprisingly, Nevada, Florida and California were the states with the highest rates of foreclosure.
As more homes go through the foreclosure process, more homebuyers are flooding the market in search of bargains. We already saw that in the first quarter, as increased foreclosure sales led to a 14 percent plunge in the median home price from a year earlier, the biggest drop on record, the National Association of Realtors said on Tuesday.
Did you know each state has its own laws governing foreclosures? Do your research before buying. Read about each state’s laws and stay up-to-date with the latest foreclosure news.
Posted by Annalisa Burgos | May 5, 2009
To many of us, the foreclosure crisis is a tragic reality of today’s economy. For savvy con artists, it’s an opportunity to make a lot of money.
Case in point, a California woman, Anna Santos, 22, pled guilty on Monday to mortgage fraud. According to the Mortgage Fraud Blog, Santos reportedly scammed 100 homeowners, offering non-existent loan modification services and conning them out of thousands of dollars. She mailed flyers promoting a foreclosure rescue program that appeared to be from victims’ lenders or a government agency. Victims mailed Santos (operating under a false company name) as much as $3,000 and received forged loan modification documents.
It’s all very sad. You’re facing foreclosure and what little money you have left is stolen by someone you trusted would help you. Which is precisely why lawmakers and government agencies want to more aggressively investigate and prosecute cases of real estate fraud. The Department of Justice, for one, is working to form a national mortgage fraud task force.
Many homeowners facing foreclosure may feel desperate and trapped, and as a result, grasp for any bit of hope they can find. But it’s important to take a breath and research your options. Don’t jump at any offer you get in the mail. In fact, there are three major red flags you should look out for before participating in any foreclosure rescue program.
READ THE RED FLAGS OF MORTGAGE FRAUD.
And get more tips and advice for fighting foreclosure on FrontDoor.com.
Posted by Annalisa Burgos | April 30, 2009
Whenever I go to an open house, the listing agent often offers me the business card of a mortgage broker or loan officer, in case I’m looking for financing. Since I usually secure financing before I go house hunting, I never really think about the recommendation. Figured the guy was a friend, so the agent was doing him a favor by throwing him a bone.
But what if that agent or broker took a kickback for it. A big NO-NO.
Apparently, that’s what the nominee for the head of the Federal Housing Administration is accused of.
David Stevens, president and chief operating officer of Long & Foster, was supposed to be confirmed on Capitol Hill this week, but lawmakers put the vote on hold to review lawsuits alleging his company broke federal anti-kickback laws.
Long & Foster is facing several class action lawsuits, alleging that it shared profits with affiliated mortgage and title companies in exchange for bringing buyers their way. While these relationships are commonplace in the real estate industry, profiting from them is illegal.
If confirmed, mortgage industry vet Stevens will run the FHA, which offers those highly-coveted loans that require as little as a 3.5 percent down payment.
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