Posted by Justin Davy | April 8, 2009
Have you recently had your home mortgage modified? Or know someone who has? We’re looking for reaction to the Obama plan regarding homeowner mortgage refinance and/or loan modification. Specifically, one of FrontDoor’s editors would like to interview individuals or households who have applied for a loan modification or worked with a loan modification company or attorney. We would like to discuss experiences, challenges, successes with obtaining a modified loan for an article in a national, minority-focused finance publication. Please respond via email to Kristin Alm (kalm@scrippsnetworks.com) by 5 p.m. ET Friday, April 10, and we’ll be in touch ASAP. Thanks for your help!
Posted by Annalisa Burgos | April 2, 2009
As they say, April showers bring May flowers. And in real estate, it seems like all the elements are in place for a perfect storm heading into the prime Spring season.
News headlines are proclaiming “falling home prices” and “interest rates at record lows.” Throw in record levels of foreclosures on the market, and you’ve got a trifecta for a Spring homebuying spree.
We already started to see the trend in February, when the National Association of Realtors’ reported a 5.1 percent jump in existing home sales, citing a surge in distressed home sales. And with the latest S&P Case-Shiller Home Price Index showing home prices in 20 major cities down 19 percent from a year earlier, this trend is likely to continue.
Speaking of home prices, what are today’s sellers supposed to do when trying to price their homes? Yes, they’re supposed to be using comps to determine fair market value. But if you’re competing with foreclosures, short sales and just desperate (er, motivated) sellers, it screws up the whole paradigm. Not sure if you can really call all this “fair.” Unfortunately, that’s the reality of selling in this market. So if you have no choice but to sell now, buck up, get realistic, research what’s happening in your market and try these tips on how to price your home to sell, courtesy of FrontDoor Insider and San Diego Realtor Kris Berg. And real estate guru Barbara Corcoran shares her top 4 must-do tips, including one on pricing your home.
Home values aren’t what they used to be. But the ways to determine home value won’t change. Sellers, get back to the basics and check out FrontDoor’s Home Seller’s Guide, specifically steps 7 and 8.
And buyers, we’ve got tips for you too. FrontDoor’s Top 10 for April features our Top 10 Bargain Markets for Homebuyers. And check out steps 9-10 of FrontDoor’s First Time Homebuyer’s Guide. Just because prices and interest rates are falling doesn’t mean everything is an automatic bargain. You’ve still got to do your due diligence.
Happy house hunting and selling!
Posted by Annalisa Burgos | March 20, 2009
Happy first day of Spring! In celebration of the traditional kickoff to the busiest season for real estate (and this one will definitely be busy, what with interest rates as low as 4.3 percent!), FrontDoor.com is bringing you helpful tips to make the most of your homebuying and selling experience.
Sellers, we know this may be a challenging market, but the good news is that you have the potential to showcase your home to a large number of buyers who are out in force trying to take advantage of low interest rates. If your home is in great shape and priced competitively, you’ll have every buyer’s attention. You may even spark a bidding war. Get your home ready with our Staging Tips for Spring and be sure to visit FrontDoor’s Home Selling Guide for more tips and advice on selling in a buyer’s market.
Buyers, you’re in a wonderful position! There are great deals out there. But before you start looking for houses, call at least three lenders, compare rates and terms, and get a preapproval. It’ll help you determine how much house you can afford. Check out our Home Finance Guide for more tips and advice on shopping for a loan.
If you’ve never owned a home, check out FrontDoor’s First Time Homebuyer’s Guide. We’ve broken down the entire process in simple terms, complete with checklists and worksheets, so you’ll know exactly to expect. Did you know there are cities suited for first time homebuyers?
And buyers and sellers, consider going green in honor of spring. FrontDoor’s Green Real Estate Guide is chocked full of information on how to make affordable green updates and how to find a “green” home.
Happy house hunting and selling!
Posted by Annalisa Burgos | March 14, 2009
I never would have dreamed of buying real estate in Manhattan. But somehow in today’s market, I can actually afford it. And I’m not talking about million-dollar properties. I’m talking 1-bedrooms going for as little as 350K. What!?! Granted these are tiny co-ops/condos relative to the rest of the country, but still! When I first moved here in 2003, buying in “the city” was totally unheard of. I was resigned to life as a renter.
The tricky thing though is not finding a place, but finding a lender who’ll give me the loan terms I want. I know the process, but in today’s market, things are constantly changing. One minute, the Bank of America rep is saying I need to put 10 percent down, the next minute, I have to put 15 percent down. Mortgage officers are still trying to figure things out.
The great thing is you can educate yourself as much as you can. FrontDoor’s Home Finance and Home Value Guide features tips and advice on everything from getting a loan to refinancing to buying investment properties. See the 5 strongest housing markets in the country and find out which remodeling projects actually add value to your home.
Buying in Manhattan is different from other markets mainly because buyers at my level are typically limited to cooperative housing. Unlike condos, in a co-op, you’re buying a share of the building, which is legally owned by a corporation. Most co-ops require approval from a board before you can buy in the building. You also are required to pay monthly maintenance fees that cover the building’s mortgage payment, property taxes, a property manager and any amenities. Learn more about the process in FrontDoor’s Co-Op Buying Guide.
So this weekend, I’m hitting the pavement and looking for a Manhattan apartment. Who knew?!
Posted by Annalisa Burgos | March 12, 2009
With foreclosures instantly at the top of the news again, we’ve pulled together tips and tools for homeowners struggling with their mortgages. For one, contact your lender immediately and ask about your options, whether it’s a refinance or loan modification.
Also, investors looking for opportunities should check out our 10 steps to buying a foreclosure. Did you know properties can be in one of three stages of foreclosure? Find out which one is right for you. Plus, search for available foreclosures on FrontDoor.com.
According to RealtyTrac, the foreclosure picture remains bleak, with February foreclosure filings in the U.S. up 30 percent year-over-year. Among the top 10 hardest hit metro areas, in order: Las Vegas, Cape Coral-Fort Myers, Stockton, Modesto, Merced, Riverside-San Bernardino, Bakersfield, Reno-Sparks, Phoenix and Vallejo-Fairfield. The news comes amid President Obama’s $75 billion dollar efforts to keep struggling homeowners from losing their homes.
FrontDoor Insider Rick Sharga of RealtyTrac predicts even more challenging times this year. Several analysts and economists have said that Obama’s refinancing and loan modification programs aren’t enough to buoy an economy plagued with an 8.1 percent unemployment rate and lagging consumer confidence.
And with foreclosures sure to make headlines again, FrontDoor is working on a new foreclosure resource center, with more helpful guides and tools. Stay tuned!
Posted by Annalisa Burgos | March 4, 2009
Starting today, homeowners can apply for a loan modification with lenders under Obama’s $75 billion refinance and mortgage modification program. The Treasury Department says the “Making Home Affordable” program will help up to 9 million homeowners avoid foreclosure.
Lenders will receive financial incentives to modify mortgages of at-risk borrowers who have not yet missed payments and to remove second liens on loans. You can modify through Dec. 31, 2012.
Eligibility:
* Loans originated on or before Jan. 1, 2009
* First-lien loans on owner-occupied properties with unpaid balance up to $729,750. No investor-owned, vacant or condemned properties.
* Borrowers must show a recent tax return and two pay stubs and sign an affidavit of financial hardship.
The plan sets industry-wide standards for modifying a home loan, including using a “net present value” (NPV) test to determine the benefit of a loan modification. This test includes ways to determine property value, assume home price appreciation and estimate foreclosure costs.
Under the plan, a borrower’s monthly payment must be reduced to no more than 31 percent of gross monthly income.
To do this, the lender must go through a series of steps:
1) reduce the interest rate, at a floor of 2 percent
2) extend the life of the loan for a maximum of 40 years
3) forbear principal (i.e. offer interest-free forbearance on part of the principal)
Check with your lender to see if you qualify.
And don’t forget that borrowers with mortgages held by Fannie Mae and Freddie Mac are also eligible to refinance through June 2010.
Stay tuned for more exclusive real estate news, only on FrontDoor Unlocked!
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