Apr 11, 2013

Is the current increase in home prices sustainable or has the market been manipulated?

Nationwide reports of increasing home values leaves many unanswered questions. Is there really a sustainable recovery in homes values or are values been distorted due to supply side manipulation? Over $9 billion has been pored into the single family foreclosure market by investors, creating what could well be a temporary supply side shortage of single family homes. Institutional investors looking to build large portfolios of rental properties, continue to reduce the availability of REOs (Bank Owned Properties) and foreclosures available for sale to the general public. In addition, lenders are slow walking the availability of REOs to the home buying public, suspicious at a time when there is a general increase in demand. REOs are also listed for sale at low prices with the sole intension of generating multiple offers, instigating bidding wars resulting in high prices normally not supported by appraisals. These factors have created an abnormality in housing supply, leading to the inability for many normal homebuyers finding suitable homes available for purchase.

The numbers of first time homebuyers, the engine that drives a sustainable housing recovery has been declining. Should the recent rapid increase in home prices continue to exert downward pressure on the numbers of first time buyers entering the market place the housing recovery cannot be sustained. A true recovery of the housing market must be driven by increasing demands from normal homebuyers, a recovery driven by investors is likely to be only temporary.

There are still a large number of home going through the foreclosure process that will sooner or later be added to the REO inventory. Should a significant number of these homes enter the market quickly they could well stabilize home prices and help in sustaining this fragile housing recovery.

For more information about Orlando foreclosures and short sale properties subscribe to receive our monthly distressed property list.

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Apr 10, 2013

Bidding Heats Up on Orlando Short Sales and Foreclosures

The median sale price of Orlando homes rose to $133,000 in February 2013 a 4 percent jump from January’s median price of $128,000. Pending sales of foreclosures and short sales in February accounting for almost 75 percent of all home sales in the Orlando Metro area.  Buyer demand continue to drive up the prices of foreclosures and short sales, for which heated bidding wars are now routine.

Short sales, which take much longer to process from contract to close, made up 61.79 percent of pending sales in February 2013 with bank-owned properties accounting for 12.25 percent. Non distressed  properties (not bank owned or short sales) accounted for 25.96 percent of February pending sales.

The average interest rate paid by Orlando homebuyers in February, 3.21 percent, set yet another record as lowest average interest rate since ORRA began tracking the statistic in 1989. A year ago, homebuyers paid an average interest rate of 3.92 percent. First-time buyers who earn the reported median income of $37,352 can qualify to purchase one of the 2,873 homes in Orange and Seminole counties currently listed in the local multiple listing service for $199,676 or less.

Search our MLS listings for Orlando foreclosures and short sale properties for sale or subscribe to a monthly distressed property list.

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Apr 4, 2013

Pending Foreclosures Presents Risk to Florida Housing Recovery

Florida housing recovery continues to pick up steam as consumers confidence in the economy grows. According to major home price indexes, prices have increased about 9 percent over the past 6 months.  Combined with the reduction of downward pressure on home values due to declining REOs and Foreclosure inventories, the prospects for continued price increase is encouraging.  However, there could still be some stormy winds ahead.

Florida, one of the hardest hit states during the housing crisis still has a backlog of over 377,000 old foreclosure filings in the state federal courts thru 2012.  There are also reports, that one in every five mortgages in the state of Florida is in some form of delinquency.  Should the recent settlement between the Federal Reserve/Comptroller and  mortgage servicers ending the robo-signing scandal increase the pace of foreclosures over the next 12 months, there could be a cool off in Florida home prices.

Find Florida Foreclosures First

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Feb 27, 2013

Orlando Home Sales Continues Upward Trend

 

 Week In Review Feb 17, 2013
Counties: Lake, Orange, Osceola & Seminole

 Single-family existing homes

 

  • Sales of single-family homes increased to 314 from 306 during the week of Feb 17, 2013
  • Median sale price of single family homes increased to $149,950, up 4.5%.
  • Single-family home foreclosure transactions decreased to 68 from 69 last week.
  • Single-family home short-sale transactions increased to 66 from 61 last week.
  • Single-family inventory decreased by 42, and now sits at 7,472.

Condos, townhomes, and villas

  • Sales of condos, townhomes, and villas remained constant at 98 during the week of Feb 17, 2013
  • Condo, townhome, and villa foreclosure transactions increased to 20 from 19 last week.
  • Condo, townhome and villa short-sale transactions decreased to 11 from 20 last week.
  • Condo inventory decreased by 47, and now sits at 2,079.

Information courtesy of the Orlando Regional Realtor Association

 

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Feb 26, 2013

Mortgage Forgiveness Debt Relief Act Extended Thru 2013

The Federal Government extended the Mortgage Debt Relief Act of 2007.  Tax relief under this law was intended to be temporary lasting through the end of 2012; however, Congress has elected to extend this benefit thru 2013.

Homeowners who are still upside down on home mortgages may now complete short sales or modifications resulting in a portion of the debt been written off without worrying about the tax ramifications. Home owners with deficiency balances written off after foreclosures also benefit from the extension of this law.

This is good news for Florida homeowners as short sales and foreclosures are still a large section of the home market. Many homeowners still under-water with mortgages can now seek resolution thru foreclosure or short sale without the added burden of paying taxes on the debt write-off.

Under normal circumstances the Internal Revenue Service classifies any debt that is written off as taxable income.

By OD Blogger Loans, Mortgage, Real Estate No comments

Jan 31, 2013

FHA Announce Changes To Mortgage Insurence Fees

FHA Commissioner Carol Galante announced a series of changes aimed at protecting FHA’s single family insurance programs. The change most likely to affect home buyers is the announced increase to the annual mortgage insurance premium (MIP) of 10 basis points or 0.10 percent. FHA will also increase premiums on jumbo mortgages (loan $625,500 or larger) by 5 basis points or 0.05 percent.

FHA is reversing the policy put into place in 2001 allowing borrowers to cancel MIP premium payments once the mortgage balance fell below 78 percent of the original loan balance. Under the new policy borrowers will be required to pay annual mortgage insurance premiums for the life of the loan. Borrowers with down payments of 10 percent or more may be exempt from the new premium cancelation policy.

Also included in the new policies are stricter underwriting guidelines for borrowers with credit scores below 620 and debt to income ratios above 43 percent. FHA will require manual underwriting for borrowers falling within the aforementioned criteria  as well as documentation of compensating factors which supports underwriting decision to approve loans.

The FHA commissioner reaffirms the agency commitment to remain a vital source of affordable and sustainable mortgage financing for future generations of American homebuyers.   

Following a few basic steps to understand and improve your credit before applying for your loan will save you thousands of dollars in fees and mortgage payments. Download a FREE credit repair guide, plus a free copy of your credit report with score.

 

 

By OD Blogger Consumer Credit, Mortgage, Real Estate No comments

Jan 11, 2013

Learn More About Foreclosures and Relocation Assistance

Home Affordability Foreclosure Alternative also known as “HAFA” is a Federal program designed for homeowners who are unable to obtain loan modifications. HAFA provides financial incentives to lenders who approves short sales or take a deed-in-lieu of foreclosure.

A short sale occurs when a property is sold for less than the mortgage balance owed. Buyers get clear title to properties because lenders agree to release mortgage liens even though the sale proceeds are not sufficient to pay off the mortgage loans. The remaining balance of the loan is called a “deficiency”. Lenders may obtain  “deficiency judgments” court orders requiring sellers to repay the outstanding mortgage balance after the sale of the home. The HAFA program requires lenders to wave the rights to deficiency judgments.

A deed-in-lieu of foreclosure is also supported by the HAFA program. In this case, borrowers transfer ownership of properties to lenders by signing a deed in lenders favor. Under HAFA lenders would also wave the rights to deficiency judgments on unpaid balances.  

Eligibility requirements must met in order to be considered for short sales or deed-in-lieu of foreclosure  using the HAFA program. Borrowers may also be eligible for relocation compensation.

Should you be interested in learning more about short sales or deed-in-lieu of foreclosures, please post your questions in or comment section below or contact one of our foreclosure experts.

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Jan 10, 2013

How to Save on Mortgage Payments and Loan Fees

 Your credit score is the most important factor in deciding the interest rate and fees  paid for your mortgage loan. Following the few basic steps outlined in this article will help you understand and improve your credit scores before applying for your loan, saving you thousands of dollars in fees and mortgage payments.

“Credit scores” rates borrowers creditworthiness based on real time assessment of credit history.  Your personal score is the main indicator used by lenders during the loan approval process to assess the likelihood of your on-time payments and set the rate and terms of your loan.

The assessment process usually begins with a review of your credit reports provided by the three major credit reporting agencies: Experian, Equifax, and TransUnion. Consumer’s information including payment history, trade lines and public records (i.e. judgments, bankruptcies, and tax liens), are collected by these agencies from creditors and court records. This information is stored in credit files and provided to qualified creditors/lenders as user friendly credit reports.  Each agency using their own methodology calculates credit scores based on the information they have on file about consumer’s credit histories and payment patterns.

Since your score is based on information in your credit files, it is important to make sure that the information is accurately reported by all three agencies. Find out what your credit files are saying about you because information from creditors is added to your credit files without verification.

By Federal law, consumers can challenge inaccuracies and request correction to their credit files. Consumers can and should dispute any information that is inaccurate.

  • Order and review copies of your credit reports from each agency.
  • Don’t be surprised if the information on your credit file varies from one agency to another.
  • Carefully review each report for errors; yes your credit report will most likely have some errors.
  • Compare each report with your known accounts, look for inconsistencies and/or inaccurate information, duplicated accounts, closed accounts which are still reporting balances, and open collections that should have been discharged in bankruptcy.
  • Make a list and dispute any information you believe to be incorrect.
  • Contact the agency reporting the incorrect information.
  • Identify and state clearly why the disputed item is incorrect.
  • Include copies of documents supporting your claim.

There is no fee for getting disputed information removed!  The agencies have 30 days to verify disputed information and respond to your request; otherwise, they must remove the information and it cannot be refilled unless it is verified by your creditors as accurate and complete.  If any changes are made to your file you should receive notification and a free updated copy of your credit report.

 After cleaning up your credit file recheck your scores if they are still below 740 you still have some work to do.  Start by downloading EZ Steps to Improve Credit Scores.

By OD Blogger Mortgage, Real Estate No comments

Dec 14, 2012

Florida Homes For Sale By Owner

 

The property listing widgets below displays the main photos and basic information of Owner Direct Realty For Sale By Owner listings. They also provide links to a pop-up slideshow to view additional photos on each property. Click Contact The Seller buttons to contact home Sellers directly using a secured  e-form, or Listing Details to access all the detailed listing information added by Sellers.

 

 

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Windermere Mansion Short Sale

Oct 20, 2012

Windermere Mansion Short Sale

Nice Pool and Grounds – Windermere Short Sale

October’s Featured Property is a Windermere Mansion listed for Short Sale.  This 7000 square feet 4 bedroom 4 1/2 baths home is located in the prestigious gated community – Reserve At Lake Butler Sound.  Listed for $2.400 million View More Photos , Virtual Tour or schedule a Private Showing 

As Florida’s real estate market start showing signs of recovery sale prices of short sales and foreclosures are getting higher. But if you are you looking for that “one of a kind” high-end luxury home in Florida!  Short Sales and Foreclosures are still worthwhile options.




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