Renaissance Realty Group’s Blog

MORE INFORMATION ON HAFA

Eric Reid (Renaissance Realty Group ) — Mon, 15 Feb 2010 14:33:41 -0600

iNFORMATION PROVIEDED BY
By Jeff Lischer

Initially announced on May 14, 2009 , with guidance and standard forms issued on November 30, 2009, the program will help owners (referred to below as borrowers) who are unable to retain their home under the Home Affordable Modification Program (HAMP). A borrower (the current owner) may be able to avoid a foreclosure by completing a short sale or a deed-in-lieu of foreclosure (DIL) under HAFA. The guidance and forms released on November 30 do not apply to loans owned or guaranteed by Fannie Mae or Freddie Mac. Those enterprises will issue their own HAFA guidance and forms.

What is HAFA?

Who is eligible for HAFA?
The borrower must meet the basic eligibility criteria for HAMP:

· Principal residence.

· First lien originated before 2009.

· Mortgage delinquent or default is reasonably foreseeable.

· Unpaid principal balance no more than $729,750 (higher limits for 2 to 4 unit dwellings).

• Borrower's total monthly payment exceeds 31% of gross income

Home Affordable Foreclosure Alternatives Program (HAFA), which will help homeowners who are unable to retain their home under the Home Affordable Modification Program (HAMP). Under HAFA, a borrower (the current owner) may be able to avoid foreclosure by completing a short sale or a deed-in-lieu of foreclosure (DIL).

HAFA is designed to simplify and streamline the use of short sales and deeds-in-lieu of foreclosure by improving the process. Specifically, HAFA will:

Walk Away - is it the right thing to do and When is it ok ?

Eric Reid (Renaissance Realty Group ) — Mon, 15 Feb 2010 08:28:30 -0600

Walk Away - is it the right thing to do and when is it ok? With so many homeowners upside in with home values is it "ok" to walk away from a home? Is it legal and what about the ethical? When saving you family out weights saving your home it may be time to sit down and find out the legal impact to just walking away.

Where will the home market be at the end of 2010?

Eric Reid (Renaissance Realty Group ) — Mon, 15 Feb 2010 08:22:23 -0600

Where is the housing market? With more and more loans resetting and unemployement on the rise were will be at the end of 2010. So much of what is to come is unseen- this CBS report lends light on what to expect.
Watch CBS News Videos Online

HAFA -- you called me what ??

Eric Reid (Renaissance Realty Group ) — Wed, 10 Feb 2010 12:38:54 -0600

HAFA - WHAT DOES IT MEAN AND WHY DO i CARE ?

Home Affordable Foreclosure Alternatives Program (HAFA)

HAFA is a complex program, with 43 pages of guidelines and forms, designed to simplify and streamline use of short sales and deeds-in-lieu of foreclosure. HAFA is part of the Home Affordable Modification Program (HAMP), providing incentives in connection with a short sale or a deed-in-lieu of foreclosure (DIL) used to avoid foreclosure on a loan eligible for modification under the HAMP program.

These guidelines go into effect April 2010!

PLEASE RETURN TO SENDER .. past due ..

Eric Reid (Renaissance Realty Group ) — Wed, 10 Feb 2010 11:35:31 -0600

FHA Defaults hit 9%

The latest numbers from the Federal Housing Administration (FHA) show that the percentage of loans it backs that are at least 90 days past due hit 9.12% at the end of 2009. That figure is up from 6.82% one year earlier - a 34% increase. FHA officials have repeatedly cited a rise in loan defaults as inevitable given the agency's exponential growth in market share. The FHA currently backs about 30 percent of all new loans for home purchases and 20 percent of refinanced loans. Those figures represent an increase of nearly 1,000 percent since 2006, when private lenders began to pull back and the credit crunch set in. According to the agency, the bulk of its problem loans stem from originations made in 2007 and 2008.

Officials say tighter underwriting standards make more recent and new loans less likely to default. In fact, HUD said in its fiscal year 2011 budget that it expects new business from FHA to generate a $6 billion overall profit, although that number will be eclipsed by projected losses of $19 billion from insuring soured loans. In the fourth quarter of 2009, lenders originated $86.1 billion in FHA single-family loans, up 21 percent compared to the same period in 2008. Sixty percent, or $51.8 billion, of the fourth-quarter financing was used to fund home purchases. For the full 2009 year, FHA insured 5.8 million loans, with an aggregate balance of $752.6 billion - a 24 percent increase compared to 2008's business.

Where have all the home buyers gone ?

Eric Reid (Renaissance Realty Group ) — Wed, 10 Feb 2010 11:27:07 -0600

MBA - mortgage applications down

The Mortgage Bankers Association (MBA) said rates on 30-year fixed-rate mortgages, the most widely used loan, fell below 5 percent for the first time since the week ended Dec. 18, but U.S. mortgage applications dipped last week. The MBA's Weekly Mortgage Applications Survey for the week ending February 5 decreased 1.2 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 0.6 percent compared with the previous week. The Refinance Index increased 1.4 percent from the previous week and the seasonally adjusted Purchase Index decreased 7.0 percent from one week earlier. The unadjusted Purchase Index decreased 1.1 percent compared with the previous week and was 7.5 percent lower than the same week one year ago. The four week moving average for the seasonally adjusted Market Index is up 3.8 percent. The four week moving average is up 0.8 percent for the seasonally adjusted Purchase Index, while this average is up 4.8 percent for the Refinance Index. The refinance share of mortgage activity increased to 69.7 percent of total applications from 69.2 percent the previous week. The adjustable-rate mortgage (ARM) share of activity remained unchanged at 4.5 percent of total applications from the previous week.

Bank Owned. Large Wooded Lot 4BR/2+1BA Single Family House

Eric Reid (Renaissance Realty Group ) — Thu, 04 Feb 2010 17:38:37 -0600

Renaissance Realty Group, Inc. | Renaissance Realty Group | 770-277-6652

668 Dogwood Dr, Lawrenceville, GA

Bank Owned. Very nice location & condition.

4BR/2+1BA Single Family House

offered at $140,000

Year Built	1986
Sq Footage	2,527
Bedrooms	4
Bathrooms	2 full, 1 partial
Floors	2
Parking	2 Car garage
Lot Size	0.56 acres
HOA/Maint	$0 per month

DESCRIPTION

Bank owned Foreclosure. Very nice location and good condition. 4 bedroom 2.5 bath traditional style 2-story. Large family room with hardwood flooring and fireplace. Sunny kitchen with breakfast area. Formal Dining room. Laundry / Mud room off kitchen.

Sold AS IS only but in good condition. If you are represented by an agent, your Buyer's agent must be present for ALL home showings. Unrepresented buyers may call 770-277-6652 to schedule a home tour or for offer instructions.

see additional photos below

PROPERTY FEATURES

- Central A/C	- Central heat	- Fireplace
- High/Vaulted ceiling	- Hardwood floor	- Family room
- Dining room	- Breakfast nook	- Dishwasher
- Stove/Oven	- Microwave	- Attic
- Laundry area - inside	- Balcony, Deck, or Patio	- Yard

OTHER SPECIAL FEATURES

- 2-car side entry garage

- Low Maintenance Exterior w/ Brick and Vinyl

- Dual/Zoned Heating and Air

- Fenced backyard

ADDITIONAL PHOTOS

Front	Family room
Family room 2	Dining
Kitchen

Contact info:

Renaissance Realty Group, Inc.

Renaissance Realty Group

770-277-6652

For sale by agent/broker

Equal Opportunity Housing

Posted: Jan 27, 2010, 8:29am PST

Bank Owned. Very nice location & condition.

Bank Owned Foreclosure. 4-sided brick w/ full finished basement.

Eric Reid (Renaissance Realty Group ) — Thu, 04 Feb 2010 17:36:05 -0600

Renaissance Realty Group, Inc. | Renaissance Realty Group | 770-277-6652

1548 Sever Rd, Lawrenceville, GA

Bank Owned Foreclosure. 4-sided brick w/ full finished basement.

4BR/3BA Single Family House

offered at $215,650

Year Built	1975
Sq Footage	3,246
Bedrooms	4
Bathrooms	3 full, 0 partial
Floors	1
Parking	2 Car garage
Lot Size	0.83 acres
HOA/Maint	$0 per month

DESCRIPTION

Bank owned foreclosure on large .83 acre private lot. Low maintenance exterior with 4-sided brick construction. Tiled great room w/ hardwood flooring in bedrooms. Huge eat-in kitchen includes granite counter tops, wood cabinets, pantry, dishwasher, wall oven, and electric cooktop. Bathrooms have been recently upgraded with beautiful details and tile work. Full basement includes kitchenette, 2nd laundry area, multiple bonus rooms, and private driveway with private entrance.

Great location!!!

see additional photos below

PROPERTY FEATURES

- Central A/C	- Central heat	- Fireplace
- Hardwood floor	- Tile floor	- Family room
- Breakfast nook	- Dishwasher	- Stove/Oven
- Microwave	- Granite countertop	- Basement
- Laundry area - inside	- Balcony, Deck, or Patio	- Yard

OTHER SPECIAL FEATURES

- Remodeled Bathrooms

- Hardwood flooring in bedrooms

- Tiled kitchen and family room

ADDITIONAL PHOTOS

Front of home	View from Front Porch
Kitchen	Kitchen View of Great Rm
Beautiful Tile Work	Great Room

Contact info:

Renaissance Realty Group, Inc.

Renaissance Realty Group

770-277-6652

For sale by agent/broker

Equal Opportunity Housing

Posted: Jan 27, 2010, 2:59pm PST

Bank Owned Foreclosure. Incredible steal, check out neighborhood comps.

Eric Reid (Renaissance Realty Group ) — Thu, 04 Feb 2010 17:34:16 -0600

Renaissance Realty Group, Inc. | Renaissance Realty Group | 770-277-6652

2780 Waterford Park Dr., Lawrenceville, GA

Bank Owned Foreclosure. Incredible steal, check out neighborhood comps.

4BR/2+1BA Single Family House

offered at $69,950

Year Built	1990
Sq Footage	2,050
Bedrooms	4
Bathrooms	2 full, 1 partial
Floors	2
Parking	2 Car garage
Lot Size	0.26 acres
HOA/Maint	$0 per month

DESCRIPTION

4 BR 2BA traditional home. Bank owned foreclosure. Needs some cosmetics and repairs which have already been considered in pricing this home. Check out neighborhood comparables!!!

see additional photos below

PROPERTY FEATURES

- Central A/C	- Central heat	- Fireplace
- Family room	- Living room	- Bonus/Rec room
- Dining room	- Breakfast nook	- Dishwasher
- Laundry area - inside	- Balcony, Deck, or Patio	- Yard
- Swimming pool

OTHER SPECIAL FEATURES

- BANK OWNED

ADDITIONAL PHOTOS

Photo 1	Photo 2
Photo 3	Photo 4
Photo 5	Photo 6

Contact info:

Renaissance Realty Group, Inc.

Renaissance Realty Group

770-277-6652

For sale by agent/broker

Equal Opportunity Housing

Posted: Feb 4, 2010, 1:38pm PST

1 out 10 - Homeowners are delinquent

Eric Reid (Renaissance Realty Group ) — Thu, 04 Feb 2010 16:02:53 -0600

Home loans delinquencies at 10%

According to Lender Processing Services, home-loan delinquency rates in the US reached 10% in December, up from the record-high 9.97% in November. Accounting for foreclosures in the pipeline, the total non-current rate stands at 13.3%, according to the data in the LPS database. When extrapolated for the entire mortgage industry, 7.2 million mortgage loans are behind on their payments. Earlier in January, Fitch Ratings reported the delinquency rate among prime jumbo residential mortgage-backed securities (RMBS) almost tripled to 9.2% in December 2009. For the amount of loans current at the end of 2008, 4.64% fell into serious delinquency. That means that of the loans current as of Dec. 31, 2008, 2.3 million fell into serious delinquency by December 2009. However, the 2009 vintage loans are performing better than any of the prior five years and improve as more origination months are added into the pool of loans. More restrictive underwriting guidelines drive the improvement s, but liquidity "is still not available where it is needed most," according to the report. States with the most non-current loans are: Florida, Nevada, Mississippi, Arizona, Georgia, California, Indiana, Michigan, Illinois and Ohio. States with the fewest are: North Dakota, South Dakota, Alaska, Wyoming, Montana, Nebraska, Vermont, Colorado, Oregon and Washington.

1 out 10 - Homeowners are delinquent

HOME PRICE TICKING UPWARD

Eric Reid (Renaissance Realty Group ) — Thu, 04 Feb 2010 16:09:41 -0600

Home prices in January increased 2.3%, marking the first year-over-year increase in more than three years, according to the Home Data Index (HDI) from Clear Capital, the real estate data provider. In all, prices gained 1.8% on the rolling-quarterly scale into January. All regions but the Northeast, which posted a 1% drop, saw increases over the previous three months. Prices in the Midwest increased 5%. The South had a 1.5% rise in prices, and the West had a 1.3% increase. Alex Villacorta, senior statistician at Clear Capital, said that the year-over-year price gain is good to see despite near record high real-estate owned (REO) saturation rates. That rate declined 0.7 percentage points to 24.8% in January, but, according to the report, regions with the highest level of REO have had steeper recoveries. "Recovery of home prices has generally been more notable in the regions with the highest level of REO saturation," according to the report. The trend is most apparent wi th higher levels of REO saturation seen in the West, 35.4%, and the Midwest, 28.4%. "The sustainability of current price gains will be challenged in 2010, given that most lenders and analysts predict a significantly larger number of REOs will reach the markets. Further, this suggests that as the dynamics of supply and demand evolve, different markets will have varied responses to increased REO activity," Villacorta said.

‘Strategic Default’ - What dies this term mean ?

Eric Reid (Renaissance Realty Group ) — Thu, 04 Feb 2010 09:33:49 -0600

In 2006, Benjamin Koellmann bought a condominium in Miami Beach. By his calculation, it will be about the year 2025 before he can sell his modest home for what he paid. Or maybe 2040.

"People like me are beginning to feel like suckers," Mr. Koellmann said. "Why not let it go in default and rent a better place for less?"

After three years of plunging real estate values, after the bailouts of the bankers and the revival of their million-dollar bonuses, after the Obama administration's loan modification plan raised the expectations of many but satisfied only a few, a large group of distressed homeowners is wondering the same thing.

New research suggests that when a home's value falls below 75 percent of the amount owed on the mortgage, the owner starts to think hard about walking away, even if he or she has the money to keep paying.

In a situation without precedent in the modern era, millions of Americans are in this bleak position. Whether, or how, to help them is one of the biggest questions the Obama administration confronts as it seeks a housing policy that would contribute to the economic recovery.

"We haven't yet found a way of dealing with this that would, we think, be practical on a large scale," the assistant Treasury secretary for financial stability, Herbert M. Allison Jr., said in a recent briefing.

The number of Americans who owed more than their homes were worth was virtually nil when the real estate collapse began in mid-2006, but by the third quarter of 2009, an estimated 4.5 million homeowners had reached the critical threshold, with their home's value dropping below 75 percent of the mortgage balance.

They are stretched, aggrieved and restless. With figures released last week showing that the real estate market was stalling again, their numbers are now projected to climb to a peak of 5.1 million by June - about 10 percent of all Americans with mortgages.

"We're now at the point of maximum vulnerability," said Sam Khater, a senior economist with First American CoreLogic, the firm that conducted the recent research. "People's emotional attachment to their property is melting into the air."

Suggestions that people would be wise to renege on their home loans are at least a couple of years old, but they are turning into a full-throated barrage. Bloggers were quick to note recently that landlords of an 11,000-unit residential complex in Manhattan showed no hesitation, or shame, in walking away from their deeply underwater investment.

"Since the beginning of December, I've advised 60 people to walk away," said Steve Walsh, a mortgage broker in Scottsdale, Ariz. "Everyone has lost hope. They don't qualify for modifications, and being on the hamster wheel of paying for a property that is not worth it gets so old."

Mr. Walsh is taking his own advice, recently defaulting on a rental property he owns. "The sun will come up tomorrow," he said.

The difference between letting your house go to foreclosure because you are out of money and purposefully defaulting on a mortgage to save money can be murky. But a growing body of research indicates that significant numbers of borrowers are declining to live under what some waggishly call "house arrest."

Using credit bureau data, consultants at Oliver Wyman calculated how many borrowers went straight from being current on their mortgage to default, rather than making spotty payments. They also weeded out owners having trouble paying other bills. Their estimate was that about 17 percent of owners defaulting in 2008, or 588,000 people, chose that option as a strategic calculation.

Some experts argue that walking away from mortgages is more discussed than done. People hate moving; their children attend the neighborhood school; they do not want to think of themselves as skipping out on a debt. Doubters cite a Federal Reserve study using historical data from Massachusetts that concludes there were relatively few walk-aways during the 1991 bust.

The United States Treasury falls into the skeptical camp.

"The overwhelming bulk of people who have negative equity stay in their homes and keep paying," said Michael S. Barr, assistant Treasury secretary for financial institutions.

It would cost about $745 billion, slightly more than the size of the original 2008 bank bailout, to restore all underwater borrowers to the point where they were breaking even, according to First American.

Using government money to do that would be seen as unfair by many taxpayers, Mr. Barr said. On the other hand, doing nothing about underwater mortgages could encourage more walk-aways, dealing another blow to a fragile economy.

"It's not an easy area," he said.

Walking away - also called "jingle mail," because of the notion that homeowners just mail their keys to the bank, setting off foreclosure proceedings - began in the Southwest during the 1980s oil collapse, though it has never been clear how widespread it was.

In the current bust, lenders first noticed something strange after real estate prices had fallen about 10 percent.

An executive with Wachovia, one of the country's biggest and most aggressive lenders, said during a conference call in January 2008 that the bank was bewildered by customers who had "the capacity to pay, but have basically just decided not to." (Wachovia failed nine months later and was bought by Wells Fargo. )

With prices now down by about 30 percent, underwater borrowers fall into two groups. Some have owned their homes for many years and got in trouble because they used the house as a cash machine. Others, like Mr. Koellmann in Miami Beach, made only one mistake: they bought as the boom was cresting.

It was April 2006, a moment when the perpetual rise of real estate was considered practically a law of physics. Mr. Koellmann was 23, a management consultant new to Miami.

Financially cautious by nature, he bought a small, plain one-bedroom apartment for $215,000, much less than his agent told him he could afford. He put down 20 percent and received a fixed-rate loan from Countrywide Financial.

Not quite four years later, apartments in the building are selling in foreclosure for $90,000.

"There is no financial sense in staying," Mr. Koellmann said. With the $1,500 he is paying each month for his mortgage, taxes and insurance, he could rent a nicer place on the beach, one with a gym, security and valet parking.

Walking away, he knows, is not without peril. At minimum, it would ruin his credit score. Mr. Koellmann would like to attend graduate school. If an admission dean sees a dismal credit record, would that count against him? How about a new employer?

Most of all, though, he struggles with the ethical question.

"I took a loan on an asset that I didn't see was overvalued," he said. "As much as I would like my bank to pay for that mistake, why should it?"

That is an attitude Wall Street would like to encourage. David Rosenberg, the chief economist of the investment firm Gluskin Sheff, wrote recently that borrowers were not victims. They "signed contracts, and as adults should also be held accountable," he wrote.

Of course, this is not necessarily how Wall Street itself behaves, as demonstrated by the case of Stuyvesant Town and Peter Cooper Village. An investment group led by the real estate giant Tishman Speyer recently defaulted on $4.4 billion in debt that it had used to buy the two apartment developments in Manhattan, handing the properties back to the lenders.

Moreover, during the boom, it was the banks that helped drive prices to unrealistic levels by lowering credit standards and unleashing a wave of speculative housing demand.

Mr. Koellmann applied last fall to Bank of America for a modification, noting that his income had slipped. But the lender came back a few weeks ago with a plan that added more restrictive terms while keeping the payments about the same.

"That may have been the last straw," Mr. Koellmann said.

Guy D. Cecala, publisher of Inside Mortgage Finance magazine, says he does not hear much sympathy from lenders for their underwater customers.

"The banks tell me that a lot of people who are complaining were the ones who refinanced and took all the equity out any time there was any appreciation," he said. "The banks are damned if they will help."

Joe Figliola has heard that message. He bought his house in Elgin, Ill., in 2004, then refinanced twice to get better terms. He pulled out a little money both times to cover the closing costs and other expenses. Now his place is underwater while his salary as circulation manager for the local newspaper has been cut.

"It doesn't seem right that I can rent a place somewhere for half of what I'm paying," he said. "I told my bank, ‘Just take a little bite out of what I owe. That would ease me up. Isn't that why the president gave you all this money?' "

Bank of America did not agree, so Mr. Figliola, who is 48, sees no recourse other than walking away. "I don't believe this is the right thing to do," he said, "but I've got to survive."

This story originally appeared in the The New York Times

What Happens When "YOU" Are the Internet Lead?

Eric Reid (Renaissance Realty Group ) — Thu, 04 Feb 2010 07:53:58 -0600

This is a get view from the outside looking in

Via Wendy Rulnick "Its Wendy!" Destin Florida Short Sales (Rulnick Realty, Inc.):

Everyone is talking about internet marketing and lead capture nowadays. One of the biggest problems, it seems, is converting these leads into “buyers” who actually purchase. Systems and theories about getting results abound.  But, just how do you generate the best consumer response to an internet inquiry? I recently became the lead to be converted to a buy! I was not looking for a house, mind you, but a new car.

Since I haven’t bought a car for several years, I was not sure how to go about picking a dealer and getting the best price. I don’t know the “proper” protocol of working with car salesmen. (Hmmmm, see a similarity with home buyers there?). Not knowing where to start, I emailed three dealers asking for their best price on the car I wanted. Then the fun began. Here is what happened:

Dealer #1 – No response and no email

Dealer #2 – I immediately received an auto-response email telling me their company vision and stating:

When you fill out information online, the programming does not always translate your needs perfectly and it’s not always very clear how I can help you.
If you want to ask a specific question, if you want to verify your request, or if you want to ask more questions, please click reply and explain directly to me how I can help you.

Although I liked getting a response (even though automatic), the email did not tell me the dealer would follow up or even ask me to call them unless I wanted to “explain further”. I found it strange.

But wait, five minutes later I got another email from the same dealer:

The car you want is no longer available to order, and may have to be located.

When are you available to now come by so that we may try to locate one for you?

By working with me now, 75% of your work will be done before you enter the dealership which will save you valuable time and potential frustration at the dealership.

My response as a consumer? I did not like the evasiveness of the response and script. I am three hours away from this dealer, so cannot just “stop in”. It was clear they did not like internet sales and wanted walk-in sales. That is not what I wanted. I was ready to buy over the internet.

Dealer #3 – I immediately received an auto-response email:

Thank you! We have received your message and will be in contact with you shortly. What is the best number to reach you at?
If anything else should come up, please do not hesitate to contact us again…

My response as a consumer? Even though it was not an actual person emailing me, I felt like they CARED .   But wait, twenty minutes later I got ANOTHER email from the same dealer, this time more personal.

Thanks for your email! I've already started looking for your perfect car... I'd like to speak with you to discuss the results of my search. If you could, please call me in the morning (after 9:00) to go over the details, and to discuss your trade in details. I'll need the last 7 digits of the VIN, and the exact current mileage.

Then the salesman called my office and left me a voicemail message to call him back.

My reaction as a consumer? I like this guy from Dealer #3. He follows up and he has a nice voice on the phone. He is trying to help me and asks detailed questions. I’ll probably work with him.

If you look at this real-life experiment with internet lead capture, you can easily find flaws in their systems. But in the end, what wins over the consumer? Immediate response, phone calls and personal attention. The dealer who asked ME questions, wanted my business and seemed to be working for me already won me over. The same thing applies to real estate.

It's Wendy!

Wendy Rulnick, Broker, CRP, CRS, GRI, ABR     Rulnick Realty, Inc.

Destin FL Real Estate

Destin Short Sales & Pre Foreclosure Help.

Read Wendy's Destin Real Estate Blog

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204

Email Wendy: itswendy@rulnickrealty.com

Wendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". Call Wendy Rulnick, Broker/Owner,to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County- Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field.

New Rules For For Loan Modifactions Just Annouced (Making Home Affordable )

Eric Reid (Renaissance Realty Group ) — Mon, 01 Feb 2010 18:48:07 -0600

Yesterday the Treasury Department announced new guidelines that will require applicants to provide all paperwork before getting a trial modification. The new policy should make it easier for homeowners to qualify for permanent assistance under President's Obama foreclosure prevention plan, even though it makes it harder for them to start the process. Borrowers have been complaining that their loan servicers constantly ask for additional documents and lose their forms. Servicers, meanwhile, say that borrowers are not handing in all that's needed. The new rules, which start June 1, will shift the paperwork burden from the back end to the front end of the process. Distressed borrowers will have to fill out a three-page request form that asks them to explain their hardship and list their income and expenses.

They will also have to sign an IRS 4506-Tform that allows servicers to pull their tax returns. Both forms are available on the Making Home Affordable program's Web site. Applicants will also have to verify their income. For those earning a salary, two recent pay stubs will be sufficient. Other earnings, such as income from self-employment, benefits, or rental properties, must still be documented. Servicers must acknowledge receipt within 10 business days and, if the file is complete, let the borrower know within 30 days if he or she is approved for the trial modification. If the documentation is incomplete, the servicer must tell the borrower what is outstanding. Those who are approved for trial adjustments and make three timely payments will be automatically converted to long-term modifications. Both servicers and housing experts applaud the move, saying that borrowers will now have a better sense of their chances for permanent help. "It will not lead to more modificat ions, but it will lead to more certainty," said Howard Glaser, head of The Glaser Group, a financial services analytics firm.

New Rules For For Loan Modifactions Just Annouced (Making Home Affordable )

What's Happening in Real Estate for 2010?

Eric Reid (Renaissance Realty Group ) — Mon, 01 Feb 2010 18:33:03 -0600

The real estate market in 2010 has more promise than in the past few years. With house prices in some areas beginning to stabilize and historically low interest rates, the real estate market is perfect for buyers with good credit.

The Tax Credit is a Positive Incentive
With the $8,000 tax-credit incentive extended through April 2010, first time homebuyers are continuing to buy homes that they might not have bought without the incentive. Home purchases for first time homebuyers are expected to continue to rise until the tax-credit incentive ends.

Qualified Buyers Come Out Ahead
Although lenders are keeping the debacle of the sub-prime mortgage crisis in consideration as they accept new loan applications, those who have verifiable income as well as a high credit score are prime candidates to secure a great mortgage in today's market.

Unfortunately, some real estate markets across the United States may have to absorb a new wave of foreclosures because there is a backlog of homes already in the foreclosure process; rising unemployment rates are making this problem worse. Though this isn't good news for sellers, for the savvy investor there is still opportunity for a good deal.

Move-in Ready Homes Attract Buyers
The trend for prospective homeowners is buying a home that needs little or no fixing up and the smart home seller will make necessary repairs to ensure their home sells for a fair price.

Home sellers can consult a home staging professional to ensure that their home is appealing and ready for sale. Home staging might include small repairs, furniture relocation and removing clutter from living areas.

reat information provided by By Melissa A. Nykorchuk