Short Sales

Dec 15, 2015

Low Mortgage Rates In 2016?

OD_BloggerReceived the following important information about interest rates in my newsletter this morning, had to share.

The Fed Meeting Finally Arrives

The Federal Reserve Board’s Federal Open Market Committee meets today and tomorrow. This is the most anticipated meeting of the Fed in almost a decade. It has been exactly seven years since the Fed moved short-term interest rates to close to zero and it has been over nine years since the Fed actually raised short term rates. Now the markets are expecting the Fed to raise rates from these historically low levels once again.

The Federal Reserve has indicated all along that the markets would get plenty of notice before they raise rates. This notice is designed to prevent market shocks. One must remember that the Fed is only raising short-term rates. For example, the Federal Funds Rate is the rate banks charge each other overnight as they balance their holdings. The other rate controlled by the Fed is the Discount Rate, which is also a short term rate charged to banks for borrowing money. The question is–how can these rates affect long-term rates that consumers pay for loans on cars, homes, credit cards and even student loans?

Some rates such as credit cards which are pegged to the prime rates charged by banks may go up instantly. Other loans which are based upon longer term rates such as home loans are not as easy to predict. That is where the markets come in. The markets react to what the Fed may do before they take action. For example, rates on home loans have risen in anticipation of the Fed’s move. Now the markets will listen to what the Fed will say about potential future interest moves. So let’s see what the Fed has to say in addition to whether they raise rates.

 

 

 

By OD Blogger Home Owner's Resource, Mortgage, Real Estate No comments Tags: , , ,

Jul 23, 2013

Home sales dipped in June

National Association of Realtors’ data shows existing home sales fell 1.2% in June. In spite of the slip, NAR chief  economist Lawrence Yun said there is still market momentum, even as interest rates climb.

The nations tight housing stock rose by 1.9 percent in June to 2.19 million equivalent to 5.2 months supply, still well below the 6 months supply considered a normal healthy market.  Due in part to the limited inventory of existing properties for sale many single family homes are selling above asking price and there is strong expectation of continued increase in home prices. In spite of the rosy picture pointing to higher prices and continued recovery, there are signs of concern.

First time homebuyers accounted for only 29 percent of  home buyers in June 2013 compared with 32 percent in June 2012. Low inventories of available homes, combined with rising home prices and interest rates plus tight mortgage qualification conditions are definitely limiting the number of first time homebuyers entering the housing market.

To sustain what is still a fragile housing  recovery, interest rates and rising home prices must be normalized to enable the entry of more first time home buyers into the market place.  First time homebuyers are the engine that drive the housing market, without them there is only stagnation.

Distressed homes,  foreclosures and short sales accounted for 15 percent of June sales down from May’s 18 percent recording the lowest market share since monthly tracking began in October 2008. The average sale price of foreclosures and short sales in June was 14.5 percent below market price. The declining  number of foreclosures and short sales within the market place will be another factor contributing  to the upwards pressure on home prices.

The national median existing single-family home price was $214,700 in June, which is 13.2 percent above a year ago. The national average mortgage rate of a 30 year fixed rate conventional loan is presently 4.375% up from 3.375 in May.  So how will this 1 percent rise in interest rate affect homebuyers?

One percent rise in interest rate cost homebuyers an additional  $57 for every $100,000 borrowed. Homebuyers buying an existing single family home at the national median price of $214,700, using a conventional loan with 5% down payment at a rate of 4.375%,  would have monthly payments of $1,018.37 P&I approximately $117 more than in May before the rate increase.  

The past months rapid increase in mortgage rates could delay many first time buyers entry into the housing market in this slow recovering economy.  

 

By OD Blogger Real Estate No comments Tags: , , ,

Apr 23, 2013

Foreclosure Inventory Increase in 1st quarter 2013

After finalizing the National Mortgage Service settlement almost a year ago, lenders have been working through the backlog of delinquent mortgages. In its first national foreclosure inventory analysis, RealtyTrac reported 1.5 million properties were actively in the foreclosure or REO process in the 1st quarter of 2013. Up 9% from last year.

Florida was among the States experiencing dramatic surge in foreclosure inventories during the 1st quarter of 2013, Florida foreclosures up 80% over this period.

According to RealtyTrac more than 60% of the national foreclosure inventory in the 1st quarter of 2013 were properties with loan amounts under $200,000, homes with outstanding loan amounts between $200,000 to $400,000 represented an additional 30% of the foreclosure inventory.

Search MLS for Florida Foreclosures and short sale properties for sale or subscribe to our monthly Distressed Property List.

By OD Blogger Mortgage, Real Estate No comments Tags: , , ,

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.

By OD Blogger Real Estate No comments Tags: , , ,

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

By OD Blogger Mortgage, Real Estate No comments Tags: , , ,

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

 

By OD Blogger Real Estate No comments Tags: , , ,

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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