mortgage
Nearly 27% of Mortgages Rejected Nationwide
Sunday, July 3rd, 2011 | Foreclosures, Pre-foreclosure, Real Estate Investing | No Comments
Across the country, banks are hindering the housing market recovery due to their cautious lending practices. This has resulted in an increase in the amount of mortgage loans being rejected by these largest banks. The 10 largest lenders together have denied nearly 27% of all mortgage applications. Where they once were free and loose with their lending standards (which got us into the dire situation we’re in now), many agree that things have swung too far in the other direction – now being too stringent in their lending standards. The popular sentiment is that the lending standards need to be easier for mortgage borrowers in order to help the US economy on the road to recovery.
Check out this graphic below, and you’ll see how the denial rates (the darker the red, the higher the percentage) are concentrated in the south and the so-called “Rust Belt.”
For the informed real estate investor, there are many avenues available to successfully invest and grow their business. To find out how, check this out.
Cities Still Registering Low Home Prices
Saturday, July 2nd, 2011 | Bank owned, Foreclosures, Pre-foreclosure, Real Estate Investing | No Comments
The housing market is not yet gaining the momentum it needs to recover. In the most recently released report from Case-Shiller. Robert Shiller predicts property values will continue to fall another 10-25% in the coming five years. Nineteen out of 20 major cities showed a year-over-year drop. Washington was the only area to show an increase (4%). Some cities actually hit new lows from 2006-2007, which Cleveland, Detroit and Las Vegas hit their lowest levels in more than a decade.
The housing market is not hitting its’ stride yet. Sales of previously-owned homes were down 3.8% in May over April. New home prices dropped for the first time in three months – by 2.1%. One factor in this is continued competition in the number of foreclosed homes on the market – sitting at an inventory of 1.8 million homes. That group alone will take years to move.
Borrowing is still difficult. People are feeling less wealthy and equity is shrinking. The unemployment rate is still hanging at around 9%. Developers are less willing to take risks on building new homes that will just sit vacant. The housing market is still a direct impact on the overall US economic recovery.
Amazingly, there are still huge opportunities for the educated real estate investor to capitalize on and thrive in today’s market. To find out more, click here.
Housing’s 10 Least Underwater Spots
Monday, September 20th, 2010 | Real Estate Investing | No Comments
While many areas across the country are feeling the housing crisis pinch, with high percentages of homeowners owing more on their home than it’s worth, there are actually parts of the country where there is a little more breathing room. Below is a list of two spots around the country where the amount of homeowners who are underwater is below 8.4%, compared to the national average of 21.5%. Underwater status suppresses housing demand because current homeowners feel trapped. It can also spur foreclosures and strategic defaults. The ten markets listed here have shown annualized growth over the past decade. They are:
- Pittsburgh, PA – 5.6% underwater; 2Q median price $107,164
- Tulsa, OK – 6.1% underwater; 2Q median price $117,135
- Oklahoma City, OK – 6.1% underwater; 2Q median price $119,257
- Cape Cod, MA – 6.9% underwater; 2Q median price – $318,026
- Yakima, WA – 7.2% underwater; 2Q median price – $137,568
- Springfield, MA – 7.2% underwater; 2Q median price – $190,256
- Lancaster, PA – 8% underwater; 2Q median price – 178,064
- Hartford, CT – 8.3% underwater; 2Q median price – $224,393
- Boston, MA – 8.3% underwater; 2Q median price – $331,568
- Utica, NY – 8.4% underwater; 2Q median price – $99,710
Home Appraisals Receiving Tighter Scrutiny
Wednesday, September 15th, 2010 | Bank owned, Foreclosures, Real Estate Investing | No Comments
The days of quick home appraisals seem to be coming to an end, even at times being problematic. Lenders are becoming more demanding, and often calling for second appraisals on a home before giving the green light. Where does this stem from? Of course, from the problematic home loans of the past that got us into this housing crisis in the first place. Lenders and buyers are being more cautious. For example, a lender may scrutinize an appraisal if a borrower has a marginal credit score or high debt level relative to income, or if the property was in foreclosure and was fixed and flipped by an investor. Appraisals are based on historic data, and therefore often lag behind home values. Inadequate comps might present a problem – if the comps are deemed too far away from the subject house, or the sale happened too long ago. A second appraisal starts from scratch, and involves a whole second set of costs, traditionally paid by the buyer. Finally, lenders might order a second appraisal if the first one is based on factual errors or the appraiser wasn’t competent in the area.
Fannie Mae Selling Foreclosed Homes with Subprime Terms
Wednesday, September 15th, 2010 | Bank owned, Foreclosures, Real Estate Investing | No Comments
Through their new HomePath program, troubled GSE giant Fannie Mae is offering their foreclosed homes for sale with as little as 3% down. What’s more, that 3% can be a gift from a family member of third party, or a loan from a non-profit, state or local government. Doesn’t this remind you of the “deals” that got us in this housing mess in the first place? There’s a difference. To qualify for those terms, a purchaser must choose one of Fannie Mae’s foreclosed homes, and then buy it “as is.” If the ideal home is found and renovations are needed, a buyer may qualify for the HomePath Renovation Mortgage, which will fund both the home purchase and minor renovations. This is the only time an appraisal would be required. Here’s what a potential buyer can expect, otherwise:
- Low down-payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only).
- You may qualify even if your credit is less than perfect, as low as 660, when most lenders want a minimum of 700.
- You can qualify as an investor or owner-occupant.
- Down payment must be at least 3% for an owner-occupant, but it must be funded by your own savings or by a gift, a grant or a loan from an employer, a nonprofit organization, or a state or local government. Investors must come up with 10% down.
- No appraisal is required.
- No mortgage insurance is required, but the terms of the loan may not be as favorable.
Mortgage Rates Tip-Toe Higher, Housing Sales Remain Sluggish
Monday, September 13th, 2010 | Real Estate Investing | No Comments
For the second time in the last 12 weeks, rates for a 30-year fixed rate mortgage have tip-toed higher, now sitting at 4.35%. While yes, this is an increase, it doesn’t necessarily signal an upturn in the overall housing situation. In fact, home sales remain sluggish, and it’s not because of mortgage rates. The historically low rates are certainly attractive, but experts gauge that there are larger forces at work that is keeping people away from home buying. Unemployment is still sitting just below 10%, so people are more fearful of losing their paycheck. In addition, fears of not being able to sell their existing house, combined with a reluctance to take on additional debt, keeps people right where they are. So it’s not that people don’t want to go bargain shopping and take advantage of a true buyer’s market, it’s that they don’t want to take the risk in this economic climate. Even if mortgage rates climb to 6% or higher, it will still be an attractive rate, in the grand scheme of things.
Urgent Industry Update
Wednesday, September 8th, 2010 | Foreclosures, Pre-foreclosure, Real Estate Investing, Short Sales | No Comments
My Partner Jeff Watson, and real estate investing industry advocate John Grant are holding an urgent industry update call this Thursday night at 8:30pm Eastern, 5:30pm Pacific.
Their mission: to make you aware of and education you on the latest information regarding Fannie Mae and Freddie Mac and help establish a voice for real estate investors in Washington.
If you’re an active real estate investor or just getting started in the industry YOU NEED TO BE ON THIS CALL. The information they plan to share directly affects you and the future of real estate investing as we know it.
This isn’t hype, I’m frighteningly serious.
Jeff and John will discuss potentially disturbing changes happening in Washington regarding real estate investors.
Click here to register for the call.
Point blank: This WILL RESHAPE REAL ESTATE in America – the ownership of property, and how it is bought and sold. This will directly impact what we do as real estate investors.
Get on this extremely important webinar Thursday to get all of the details.
For more information and to register, click here.
Talk soon,
Josh Cantwell
P.S. This will be the most important thing you do this week.
From Closed Door Washington Meetings
Tuesday, September 7th, 2010 | Foreclosures, Real Estate Investing, Real estate short sales, Short Sales | 1 Comment
At this very moment there are closed door meetings in Washington D.C. that will determine not only your fate as a real estate investor, but the future of the American Dream of homeownership.
Real estate as we know it will change forever.
(I don’t say this lightly.)
Fortunately, we have advocates fighting for our voice.
Jeff Watson and John Grant are fighting for our rights as real estate investors.
They are our “guys on the inside” and sitting at the table to protect our livelihood.
Right now there are major industry changes happening that directly impact what we do as real estate investors. (And even as homeowners.)
This isn’t hype; it’s very real and very scary if you don’t know how to react.
That’s why Jeff and John have scheduled an EMERGENCY UPDATE webinar this Thursday night, Sept. 9 at 8:30pm Eastern to directly address the industry changes and what they’ve learned sitting down at closed door meetings in Washington D.C.
They will discuss the topic of Fannie Mae and Freddie Mac reform and what it means for you and your business.
Closed door meetings have been held, and government hearings have been conducted. You need to be aware of what’s going on behind your back.
Get on the call to find out how you can prepare yourself.
Join Jeff and John this Thursday at 8:30 pm Eastern.
This call is critical. With the pending reform, at stake is TRILLIONS of dollars in assets, BILLIONS of liability. This will reshape real estate in America and how property is bought, sold and owned.
I can’t stress enough how important it is for you to be on this call.
Register at the link above and take a positive role in the change.
Best,
Josh Cantwell
Mortgage Closing Costs Jumped 40% in Illinois
Wednesday, September 1st, 2010 | Real Estate Investing | No Comments
Mortgage rates are the lowest they’ve been in a long time, and those people who are in a position to be able to capitalize on the market conditions and buy a home are facing another challenge: rising mortgage closing fees.
In Illinois alone last year, mortgage closing costs rose by 40%. The national average is 37%. Why the big jump? It has to do with new regulations on the mortgage industry that went into effect in January. Lenders are now required to provide much more accurate estimates of closing fees. If their estimates are not within 10% of the actuals, they are slapped with a fine. That means more time and labor going into preparing a loan, and bank being more honest. It also means fewer surprises for consumers in the end, but steeper fees. Either way, the result is not good.
Can Cornbread Stave Off Foreclosure?
Friday, August 27th, 2010 | Bank owned, Foreclosures, Pre-foreclosure | No Comments
The housing crisis is making a lot of people desperate to save their homes and ward off foreclosure, and some people are getting really innovative.
Rather than rolling over and letting the banks take their homes, they’re taking up the fight on their own. People are turning to others for help – in exchange for things like cornbread or apple cakes. A tough job market has forced many people to get creative and fight back. By raising cash from selling recipies, representing themselves in court and doing whatever necessary, many homeowners are not going away quietly. Take Beverly Davis, a Georgia homeowner who is counting on her cornbread recipie to save her home from foreclosure. After losing her full-time job and going through a series of short-lived part-time jobs, Davis is hoping to sell enough cornbread to raise the $80,000 needed to save her home. It’s a daunting task, but one she’s not afraid to take on. Davis sells her cornbread via the Web, and gained her inspiration from a New Jersey woman who saved her home from foreclosure and qualified for a loan modification by selling apple cakes.
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