Great news! The housing market is continuing to improve. The investors are willing to invest, the graduating college students are interested in buying, we just need people to sell. 1.5 million potential buyers in the market place need something to buy. If you or any of your contacts have been putting off selling, it is time to do your research and jump into the market again.
------------------------------------------------------------------------------
Housing's new twist-more bedrooms and less garage space designed toward multi generational households. Hispanics and Asians are more likely to form these households. -Regina Lewis, USA Today
------------------------------------------------------------------------------
HARP will be continued through 2014, but only loans backed by Fannie and Freddie will be refinanced. cmlynski@housingwire.com
----------------------------------------------------------------------------------
Growing demand and shrinking supply are fueling the housing industry. Remember those millennial's who graduated college and need homes.
-----------------------------------------------------------------------------
Facebook is trying to get into the local search business. For real estate this means that if you don't use Facebook to promote your company, you should. Something called Nearby is what Facebook is using. Look for search changes in 2013.
----------------------------------------------------------------------
Zillow expects home prices to rise 3.1% in 2013.
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S&P and Lender Processing Services say the housing market is up 4.3% year over year.
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Be consistent in your marketing and forward thinking.
sharexy
Monday, December 31, 2012
Sunday, December 30, 2012
Happy New Year
What did you do for someone else today? Tomorrow, what will someone be thankful for about you? When we do something for someone else just to get something for ourselves, everyone involved knows it is a selfish move. Someday when you are in need, if you have given without thought to self, others will give to you. If you think you will never be in need, you deceive yourself. There are different kinds of need. The death of a loved one, economic problems, ill health or being stranded at the side of the road in the middle of an ice storm are all times of need. What have you done for others who were or are in need?
Monday, December 24, 2012
Be thankful, but if you don't like it, change it.
BE THANKFUL, BUT IF YOU DON’T LIKE IT, CHANGE IT.
We have so much freedom in this country. If you don’t like something, you have the
ability to change it. Unlike what we
have heard from the media, there are plenty of jobs out there. If you don’t like your position, move to a
new one. If you don’t like your house,
change it. If you don’t have enough
money, you are free to earn more. Now,
you might need to do things outside your comfort zone to make these changes,
but doing something new will make you more valuable to others. You will have more skills and experiences. Recently I changed companies. I basically like the housing industry, but
construction was too hard on my body, architecture took too long to master at
my stage of life, so I settled on real estate.
But the companies I worked for were not on the same page with me. While I am not the social butterfly many
agents are, I was looking for a company that valued family life, fitness and
health, connecting with people and being at the cutting edge of the
industry. I found it. Now I have the training to find all the buyers
and sellers I could possibly want, meet all the movers and shakers I could possibly
desire and connect with others internationally.
I know you are curious as to which company met all these
requirements. I presently work at
RealEstateAuctions.com. I feel so blessed. You, too, can find the right place if you
want it badly enough. We have so much
freedom in this country and so many blessings, now step out of your comfort
zone and explore your world.
Here are some things to be thankful for:
High heating bills- I am thankful for being warm
High income tax-I am
able to make a large income
A husband who is
being a couch potato- he is home with me not out at the bars
A teenager who is
complaining about doing dishes- she is home with me not on the streets
Mess to clean after a
party-it means I have been surrounded by friends
Clothes that fit a
little too snug- I have enough to eat
All the complaining I
hear about the government- I have freedom of speech
The pile of laundry-
I have clothes to wear
Too many emails- I
have friends who are thinking of me
Merry Christmas and may you have a prosperous New Year.
Sunday, December 23, 2012
Be thankful
What would you have today if you only had what you were thankful for yesterday?
------------------------------------------------------------------
G-fees, charged by Fannie Mae and Freddie Mac will rise by 30-50 basis points which is triple what we had expected. This is suppose to encourage private capital to fund the mortgage market. There will be fewer re-fi's in 2013, but more purchases due to the milllennials' buying homes.
cmlynske@housingwire.com
-----------------------------------------------------------------------------
Remember 93% of millennials' still want to own their own homes. Market to them as well as to everyone else.
----------------------------------------------------------------------------
Dr Nouriel Roubini says there are still 2.2 million homes in shadow industry in the banks ready to be foreclosed on and more in the ready to make their way down the pipeline.
-----------------------------------------------------------------------
The president of Chemical Bank more than 100 years ago said, "The fear of God. You can have (that fear) or the socialization of risk, but not both." We now have the socialization of risk. We have lost the fear of God.
-------------------------------------------------------------------
TBSWDailyShow: There is a problem with short sales being reported as foreclosures. If you, or a client, go through a short sale, have the existing lender write a letter stating that you closed a short sale. If you experience this problem, go to the Consumer Financial Protection Bureau (CFPB) and file a complaint.
Mortgage rates will stay low until we reach 6.5% unemployment or 2.5% inflation. The powers that be, Barry Habib, say that we should keep the low interest rates until at least mid 2013 before these numbers are reached.
-----------------------------------------------------------------------
Cook County, Chicago, plans to take title to foreclosed, abandoned and vacant properties. What the article didn't say is after demolishing or repairing the properties, what will the county do with them? I have a problem with government taking possession of large quantities of property. Since governments don't create jobs or wealth, this looks like the county gov't of Cook County is removing the ability of the citizens to own the land. Don't know for sure, but would sure like to have more information.
-----------------------------------------------------------------
TBSWDailyShow?
The treasury is thinking about giving loan modifications on loans of up to 125% LTV that are current on their payments. The treasury would pay private loan holders who bought the loans from Fannie or Freddie, private loan servicers, but who haven't been giving loan modifications. This could help nearly 1 million home owners. Sounds very expensive. We, the citizens, would be the ones paying for this at a time when trillions of dollars of our debt is being held by China, India, Brazil and Japan. We would need to borrow more to pay for these loan modifications. Aren't we suppose to be cutting spending? The administration is afraid that the congress will do nothing to address the problem of perfectly performing loans. (?) We would be taking money from those who do not yet have mortgages to pay for those who are not behind on their loans. This sounds crazy to me. Does anyone in Washington understand what they are doing?
-----------------------------------------------------------------------
Home sales increased 16% over a year ago. This makes 10 months in a row of rising home prices. The median price for homes sold this November was $163,750, up nearly 4% from October and almost 7% from November 2011. Rising prices are due mostly to a dwindling inventory, as the average number of homes for sale is now 29% lower than last year.-Brad Finkelstein in Origination News
-----------------------------------------------------------------------
TBSWDailyShow:
71% of those looking for homes think the market will improve. Ask your clients what they think. Whether or not they believe the market is improving, show your clients what the market is doing to encourage them to buy now. Make a presentation of the numbers and experts' opinions to prove that the market is moving up. Lumber futures have risen to a 6-yr high. Show everyone that the market is improving, both buyers and sellers or those who should be.
-------------------------------------------------------------------------
The CFPB has been targeted by Sen. Issa as "potentially a aggressive and heavy handed regulator of financial products. This is when 30% of Americans do not have adequate access to traditional financial services and 50% of all Americans could not produce $2000 within 30 days for an emergency." Yet, the CFPB threatens to restrict financial access even further. The CFPB has increased the cost of consumer credit by $1.7 billion and has depressed job creation by 150,000 jobs. This bureau could have a chilling effect on lending and thereby diminishing credit access for eligible consumers. Banks are faulting the CFPB for reducing their ability to lend and small banks are disappearing. In 1997 there were 9,143, in 2012 there are 6,263. All this regulation is making business more difficult for small businesses, which means we will all be looking at doing business with mega businesses. This translates into higher prices in all areas. The CFPB is not required to consider how their policies will affect the public. They are on track to jeopardize a full economic recovery. This came out of the Dodd-Frank bill. The House of Representatives Committee on Oversite and Government Reform condemns the CFPB in a published report on 12/4/2012.
----------------------------------------------------------------
TBSWDailyShow
-------------------------------------------------------------
HousingWire Update
Slight uptick in delinquent mortgages. The rate is now 7.12%.
Home builders saw better results than expected in 2012, according to S&P. Sales volumes and average selling prices well exceeded what was expected by the ratings service, delivering nearly 20% more homes this year compared to 2011.
------------------------------------------------------------------
G-fees, charged by Fannie Mae and Freddie Mac will rise by 30-50 basis points which is triple what we had expected. This is suppose to encourage private capital to fund the mortgage market. There will be fewer re-fi's in 2013, but more purchases due to the milllennials' buying homes.
cmlynske@housingwire.com
-----------------------------------------------------------------------------
Remember 93% of millennials' still want to own their own homes. Market to them as well as to everyone else.
----------------------------------------------------------------------------
Dr Nouriel Roubini says there are still 2.2 million homes in shadow industry in the banks ready to be foreclosed on and more in the ready to make their way down the pipeline.
-----------------------------------------------------------------------
The president of Chemical Bank more than 100 years ago said, "The fear of God. You can have (that fear) or the socialization of risk, but not both." We now have the socialization of risk. We have lost the fear of God.
-------------------------------------------------------------------
TBSWDailyShow: There is a problem with short sales being reported as foreclosures. If you, or a client, go through a short sale, have the existing lender write a letter stating that you closed a short sale. If you experience this problem, go to the Consumer Financial Protection Bureau (CFPB) and file a complaint.
Mortgage rates will stay low until we reach 6.5% unemployment or 2.5% inflation. The powers that be, Barry Habib, say that we should keep the low interest rates until at least mid 2013 before these numbers are reached.
-----------------------------------------------------------------------
Cook County, Chicago, plans to take title to foreclosed, abandoned and vacant properties. What the article didn't say is after demolishing or repairing the properties, what will the county do with them? I have a problem with government taking possession of large quantities of property. Since governments don't create jobs or wealth, this looks like the county gov't of Cook County is removing the ability of the citizens to own the land. Don't know for sure, but would sure like to have more information.
-----------------------------------------------------------------
TBSWDailyShow?
The treasury is thinking about giving loan modifications on loans of up to 125% LTV that are current on their payments. The treasury would pay private loan holders who bought the loans from Fannie or Freddie, private loan servicers, but who haven't been giving loan modifications. This could help nearly 1 million home owners. Sounds very expensive. We, the citizens, would be the ones paying for this at a time when trillions of dollars of our debt is being held by China, India, Brazil and Japan. We would need to borrow more to pay for these loan modifications. Aren't we suppose to be cutting spending? The administration is afraid that the congress will do nothing to address the problem of perfectly performing loans. (?) We would be taking money from those who do not yet have mortgages to pay for those who are not behind on their loans. This sounds crazy to me. Does anyone in Washington understand what they are doing?
-----------------------------------------------------------------------
Home sales increased 16% over a year ago. This makes 10 months in a row of rising home prices. The median price for homes sold this November was $163,750, up nearly 4% from October and almost 7% from November 2011. Rising prices are due mostly to a dwindling inventory, as the average number of homes for sale is now 29% lower than last year.-Brad Finkelstein in Origination News
-----------------------------------------------------------------------
TBSWDailyShow:
71% of those looking for homes think the market will improve. Ask your clients what they think. Whether or not they believe the market is improving, show your clients what the market is doing to encourage them to buy now. Make a presentation of the numbers and experts' opinions to prove that the market is moving up. Lumber futures have risen to a 6-yr high. Show everyone that the market is improving, both buyers and sellers or those who should be.
-------------------------------------------------------------------------
The CFPB has been targeted by Sen. Issa as "potentially a aggressive and heavy handed regulator of financial products. This is when 30% of Americans do not have adequate access to traditional financial services and 50% of all Americans could not produce $2000 within 30 days for an emergency." Yet, the CFPB threatens to restrict financial access even further. The CFPB has increased the cost of consumer credit by $1.7 billion and has depressed job creation by 150,000 jobs. This bureau could have a chilling effect on lending and thereby diminishing credit access for eligible consumers. Banks are faulting the CFPB for reducing their ability to lend and small banks are disappearing. In 1997 there were 9,143, in 2012 there are 6,263. All this regulation is making business more difficult for small businesses, which means we will all be looking at doing business with mega businesses. This translates into higher prices in all areas. The CFPB is not required to consider how their policies will affect the public. They are on track to jeopardize a full economic recovery. This came out of the Dodd-Frank bill. The House of Representatives Committee on Oversite and Government Reform condemns the CFPB in a published report on 12/4/2012.
----------------------------------------------------------------
TBSWDailyShow
-------------------------------------------------------------
HousingWire Update
Slight uptick in delinquent mortgages. The rate is now 7.12%.
Home builders saw better results than expected in 2012, according to S&P. Sales volumes and average selling prices well exceeded what was expected by the ratings service, delivering nearly 20% more homes this year compared to 2011.
Wednesday, December 12, 2012
12 Tips from Gary Keller
TBSWDailyShow:
The 2007 Debt Relief Act will disappear with advent of the fiscal cliff. That means any relief from foreclosure, short sale or modification will be taxed. What about mortgage tax deductions? That too would disappear. But the number of buyers would be unaffected. That is because only 25% of the homeowners who can deduct their mortgage interest actually do. However, the rest of the items in the sequestration bill, such as higher tax rates and large spending cuts, will take effect and that will reduce the number of buyers. Capital gains taxes will go from 15%- 20%. And the FHA may still need a bailout, but will there be money to do that? However, remember that the FHA still has a bunch of money in an account that they don't count. If they did, they wouldn't need a bailout.
----------------------------------------------------------------
TBSWDailyShow:
Builders are lending and making really good profits. Pulte's revenues went up 70% in the 3rd quarter, 6x the revenues of sales. And they aren't the only ones.
----------------------------------------------------------------
Cmlynski@housingwire:
Robert Wentenhall of Royal Bank of Canada predicts more than one million in housing starts in the US in 2013. The reasons are low inventory, stable pricing and low interest rates. While the fiscal cliff looms, it is still better to own than to rent.
------------------------------------------------------------------
So far, while housing is starting to rebound, the government's jobs report hasn't found a rebound in construction jobs. That is because builders subcontract most of the work and most of the subcontractors are smaller and newer so are not yet reflected in the employment numbers.-Nin-Hai Tseng -CNN
------------------------------------------------------------------
What do you do with your past customers? Connect with them at least monthly to keep you in their minds and vise versa. Make a data base and send monthly or weekly newsletters. Maybe you know of something else that will allow you to connect with them on a regular basis. Use it!
-----------------------------------------------------------------
Home prices are expected to continue to rise due to investors. But as the investors continue to buy up blocks of properties, that will at some point reach a tipping point when the prices and investments even out. Then investors will reduce investing and prices will drop somewhat again. However, if underwriting standards remain at their present levels, that will discourage individual home buyers. Expect a 5% increase in home prices for the next year.-Keri Ann Panchuck in HousingWire
------------------------------------------------------------------
Mortgage rates are expected to remain below 4% for all of 2013, says Fannie Mae. Vacancy rates should fall to 2002 and 2003 levels for multi- and single family units.-mhopkins@housingwire.com.
-------------------------------------------------------------------
If the employment number are true for the 25-34 year olds, then we should see a growth in their housing purchases. Unemployment is at 7.9% right now, but was 9.2% last year.-Keri Ann Panchuck in HousingWire
--------------------------------------------------------------------
TBSWDailyShow:
12 Tips from Gary Keller of KellerWilliams:
1. Run toward the market
2. Do what you don't want to do for lead generation
3. The law of equilibrium-you should succeed just as well in down markets as in up markets because you are competing with fewer agents
4. Cut your expenses to the bone
5. Invest in your marketing needs to make your money (lead generations)
6. Get educated
7. Top agents focus on lead generation
8. Hard work on lead generation is more important than pure talent in sales
9. Prospecting works better than marketing
10. If you argue for your limitations, you get to keep your limitations
11. Have a capture strategy
12. Lead generation must be what you do first thing in the morning not last thing at night
------------------------------------------------------------------
From MoneyNews:
The Federal Reserve said on Wednesday it would keep interest rates near 0 until the unemployment rate is at 6.5%. But this will hold only if inflation is projected to stay below 2.5% one to two years in the future. It will also continue printing money.
----------------------------------------------------------------------
TBSWDailyShow:
FHA loan limits for all areas-https://entp.hud.gov/idapp/html/hicostlook.cfm
--------------------------------------------------------------------
U.S. bank repossessions grew 11% from October and 5% from last year.-Keri Ann Panchuck in HousingWire
-------------------------------------------------------------------
Check out our website- RealEstateAuctions.com.
The 2007 Debt Relief Act will disappear with advent of the fiscal cliff. That means any relief from foreclosure, short sale or modification will be taxed. What about mortgage tax deductions? That too would disappear. But the number of buyers would be unaffected. That is because only 25% of the homeowners who can deduct their mortgage interest actually do. However, the rest of the items in the sequestration bill, such as higher tax rates and large spending cuts, will take effect and that will reduce the number of buyers. Capital gains taxes will go from 15%- 20%. And the FHA may still need a bailout, but will there be money to do that? However, remember that the FHA still has a bunch of money in an account that they don't count. If they did, they wouldn't need a bailout.
----------------------------------------------------------------
TBSWDailyShow:
Builders are lending and making really good profits. Pulte's revenues went up 70% in the 3rd quarter, 6x the revenues of sales. And they aren't the only ones.
----------------------------------------------------------------
Cmlynski@housingwire:
Robert Wentenhall of Royal Bank of Canada predicts more than one million in housing starts in the US in 2013. The reasons are low inventory, stable pricing and low interest rates. While the fiscal cliff looms, it is still better to own than to rent.
------------------------------------------------------------------
So far, while housing is starting to rebound, the government's jobs report hasn't found a rebound in construction jobs. That is because builders subcontract most of the work and most of the subcontractors are smaller and newer so are not yet reflected in the employment numbers.-Nin-Hai Tseng -CNN
------------------------------------------------------------------
What do you do with your past customers? Connect with them at least monthly to keep you in their minds and vise versa. Make a data base and send monthly or weekly newsletters. Maybe you know of something else that will allow you to connect with them on a regular basis. Use it!
-----------------------------------------------------------------
Home prices are expected to continue to rise due to investors. But as the investors continue to buy up blocks of properties, that will at some point reach a tipping point when the prices and investments even out. Then investors will reduce investing and prices will drop somewhat again. However, if underwriting standards remain at their present levels, that will discourage individual home buyers. Expect a 5% increase in home prices for the next year.-Keri Ann Panchuck in HousingWire
------------------------------------------------------------------
Mortgage rates are expected to remain below 4% for all of 2013, says Fannie Mae. Vacancy rates should fall to 2002 and 2003 levels for multi- and single family units.-mhopkins@housingwire.com.
-------------------------------------------------------------------
If the employment number are true for the 25-34 year olds, then we should see a growth in their housing purchases. Unemployment is at 7.9% right now, but was 9.2% last year.-Keri Ann Panchuck in HousingWire
--------------------------------------------------------------------
TBSWDailyShow:
12 Tips from Gary Keller of KellerWilliams:
1. Run toward the market
2. Do what you don't want to do for lead generation
3. The law of equilibrium-you should succeed just as well in down markets as in up markets because you are competing with fewer agents
4. Cut your expenses to the bone
5. Invest in your marketing needs to make your money (lead generations)
6. Get educated
7. Top agents focus on lead generation
8. Hard work on lead generation is more important than pure talent in sales
9. Prospecting works better than marketing
10. If you argue for your limitations, you get to keep your limitations
11. Have a capture strategy
12. Lead generation must be what you do first thing in the morning not last thing at night
------------------------------------------------------------------
From MoneyNews:
The Federal Reserve said on Wednesday it would keep interest rates near 0 until the unemployment rate is at 6.5%. But this will hold only if inflation is projected to stay below 2.5% one to two years in the future. It will also continue printing money.
----------------------------------------------------------------------
TBSWDailyShow:
FHA loan limits for all areas-https://entp.hud.gov/idapp/html/hicostlook.cfm
--------------------------------------------------------------------
U.S. bank repossessions grew 11% from October and 5% from last year.-Keri Ann Panchuck in HousingWire
-------------------------------------------------------------------
Check out our website- RealEstateAuctions.com.
Wednesday, December 5, 2012
Selling properties
For those who are trying to sell anything, if you had a million or billion dollar client, how would you treat them? Would you return their phone calls and emails? Would you take as much time with them as they wanted in order to make them feel comfortable? You never know who will create this kind of large sale. It could be the little old lady who can't hear very well, but has numerous properties with which she needs help. It could be the guy in the ratty, old pickup who owns hundreds of acres or several businesses. It could be the naive 20 something who has wealthy, doting relatives and doesn't know how to express him or herself. Until you spend time with the people, whether on the phone or face to face, you don't know what their situation is. If you blow off the unassuming or get annoyed with the annoying people, you may be shooting yourself in the foot. As my favorite mortgage loan guys said on TBSWDailyShow:
Thomas Edison said, "Genius is 1% inspiration and 99% perspiration. Do you have an active plan for growing your business? Samuel Goldwyn said, "The harder I work the luckier I get". Babe Ruth, "It's hard to beat a person who never gives up". Gary Keller, "One scoop of talent is not as valuable as 10 scoops of tenacity". What are you going to do about your business this next year? Make a plan and stick to it. No matter how good you are at the paperwork in your business, without converting prospects to clients, your income is lower. Never delegate your lead generation activities. Marketing ideas are like diets. Which one works? All of them do if you just do it.
So remember, all people are valuable. It is your responsibility to take the time to find out which ones are mutually beneficial. And it may be in ways you don't even imagine.
---------------------------------------------------------------------
Foreclosure starts dropped dramatically starting in September when the first of the 14 day notices in writing were sent as required by the National Mortgage Settlement. These notices are now required prior to referring a loan to foreclosure. This does not mean foreclosures are permanently down.-Kerri Panchuck in HousingWire.
--------------------------------------------------------------------
1 in 3 people say they would be open to getting home mortgage loans at Walmart according to a Carlyle and Gallagher Consulting Group survey. And almost 1/2 would consider getting one from PayPal. Costco already gives mortgages.
-----------------------------------------------------------------------
Progressives are now pushing for a financial transaction tax. George Soros is for it. Therefore, I must be against it!
-----------------------------------------------------------------------
G-fees (guaranty fees) will be increasing nationally, per FHFA. The bill has passed the House of Reps. However, five states will also be increasing their fees Connecticut, Florida, Illinois, New Jersey and New York. This is to cover the longer mortgage default processes.
---------------------------------------------------------------------
"If you argue for your limitations, you will keep them." Gary Keller
-----------------------------------------------------------------------
FHA will sell 40,000 distressed home loans next year. There will be 10,000- 15000 loans sold in the first quarter. They will mainly be in CA, GA, FL, OH. -CMlynski@housingwire.com
Thomas Edison said, "Genius is 1% inspiration and 99% perspiration. Do you have an active plan for growing your business? Samuel Goldwyn said, "The harder I work the luckier I get". Babe Ruth, "It's hard to beat a person who never gives up". Gary Keller, "One scoop of talent is not as valuable as 10 scoops of tenacity". What are you going to do about your business this next year? Make a plan and stick to it. No matter how good you are at the paperwork in your business, without converting prospects to clients, your income is lower. Never delegate your lead generation activities. Marketing ideas are like diets. Which one works? All of them do if you just do it.
So remember, all people are valuable. It is your responsibility to take the time to find out which ones are mutually beneficial. And it may be in ways you don't even imagine.
---------------------------------------------------------------------
Foreclosure starts dropped dramatically starting in September when the first of the 14 day notices in writing were sent as required by the National Mortgage Settlement. These notices are now required prior to referring a loan to foreclosure. This does not mean foreclosures are permanently down.-Kerri Panchuck in HousingWire.
--------------------------------------------------------------------
1 in 3 people say they would be open to getting home mortgage loans at Walmart according to a Carlyle and Gallagher Consulting Group survey. And almost 1/2 would consider getting one from PayPal. Costco already gives mortgages.
-----------------------------------------------------------------------
Progressives are now pushing for a financial transaction tax. George Soros is for it. Therefore, I must be against it!
-----------------------------------------------------------------------
G-fees (guaranty fees) will be increasing nationally, per FHFA. The bill has passed the House of Reps. However, five states will also be increasing their fees Connecticut, Florida, Illinois, New Jersey and New York. This is to cover the longer mortgage default processes.
---------------------------------------------------------------------
"If you argue for your limitations, you will keep them." Gary Keller
-----------------------------------------------------------------------
FHA will sell 40,000 distressed home loans next year. There will be 10,000- 15000 loans sold in the first quarter. They will mainly be in CA, GA, FL, OH. -CMlynski@housingwire.com
Low income households and housing prices
Low income households are not going into debt with home mortgages or home equity. In a normal economy, as borrowing drops, interest rates drop then other parts of the economy pick up the slack in borrowing and the interest rates rise. This time low income households are borrowing for autos and credit cards, but not homes. Not enough of the rest of the higher income households are acquiring mortgages to off set the lack of borrowing of the least wealthy. Therefore, the housing and economic rebound will be slow.-Keri Panchuck in HousingWire.
-----------------------------------------------------------------
Kerri Panchuck also reports: Fannie Mae and Freddie Mac still owe the American public $140 billlion dollars. The Republicans are not addressing the problem, they are looking to do away with the GSE's and ignore the debt. The Democrats are just plain silent. Even the opinions of the stockholders and preferred shareholders are inconsequential.
-----------------------------------------------------------------
"A piece of legislation passed the New Jersey Senate that could financially penalize financial firms for failing to maintain vacant, foreclosed homes. The bill has to go through the state Assembly before it has a chance to become law, according to New Jersey.com."-Kerri Panchuck in Morning Radar.
-------------------------------------------------------------------
TBSWDailyShow says: The mortgage deduction has been around for 100 yrs. Lawrence Yun, the NAR chief economist says, loosing the mortgage deduction would lead to a 15% loss in total home equity, a loss of 250K-350k jobs and would slow sales 10%-15%.
Active prospecting works better than passive marketing. Get over the possible rejection. Call and meet face to face with people. Prospects are less likely to blow you off if the your contact is personal. Actively seek out buyers and sellers. Call prospective buyers and For Sale By Owners and your referral data base. You know this, but are you doing it?
------------------------------------------------------------------
QE3 is the Treasury Department's way of bolstering our economy. This means the US government is expected to continue to buy longer term Treasury bonds and mortgage backed securities. This is what printing money means in practical terms. But since 50% of all re-fied distressed mortgages go back into distress, the Federal Gov't is throwing money down a rat hole. That is our money, the citizens of these United States money, which is being wasted.
------------------------------------------------------------------
From TBWSDailyShow:
Thomas Eddison said, "Genius is 1% inspiration and 99% perspiration. Do you have an active plan for growing your business? Samuel Goldwyn said, "The harder I work the luckier I get". Babe Ruth, "It's hard to beat a person who never gives up". Gary Keller, "One scoop of talent is not as valuable as 10 scoops of tenacity". What are you going to do about your business this next year. Make a plan and stick to it. No matter how good you are at the paperwork in your business, without converting prospects to clients, your income is lower. Never delegate your lead generation activities. Marketing ideas are like diets. Which one works? All of them do, if you just do it. Every dollar you spend on your business, must generate a return. For example, if you spend a dollar in print marketing, it must generate a dollar plus some. So, how do you increase your rate of return? Spend more personal time with prospects and clients. If you are spending $5000 in print marketing, it should return $20k-$30k in closed business.
--------------------------------------------------------------------
TBSWDailyShow:
The number of first time homebuyers has dropped to the 2009 level. This means there are fewer buyers for the starter homes. Who then is buying the starter homes? Investors. What is the reason for the drop in first time home buyers? The FHA has tightened up its requirements. Most first time homebuyers use FHA. And has raised the price of mortgage insurance. Without the first time buyers, there will be fewer move up buyers in the future.
-----------------------------------------------------------------
Nationwide, housing prices are up 3.6% in the 3rd quarter over last year. Phoenix was up 20.6% and Atlanta finally reversed its price decline with a 0.1% price rise. Home prices rose in 17 of the 20 cities surveyed.-Kerri Ann Panchuck in HousingWire
-----------------------------------------------------------------
Housing Market Index-An index of over 300 home builders, which shows the demand for new homes. The index runs from 0-100, so a rating of 50 would mean that demand for new homes was average.
Read more: http://www.investopedia.com/terms/h/housingmarketindex.asp#ixzz2DjrOJdOh
The housing market index is at 46 up from 41 in October which is the highest since 2006. This is due to homebuilder's confidence.-cmlynski in HousingWire. But with superstorm Sandy requiring a surge in home building, what is the truth? What would the numbers be without that natural disaster?
----------------------------------------------------------------
FHA is raising the mortgage insurance rates and g-fees next year. Also, FHA's mortgage insurance premiums, starting next year sometime, will be for life. Even if you, homeowner, have paid off 78% of your loan, you will be stuck with the PMI unless you refinance to a higher rate mortgage interest rate. So, buy now!
-----------------------------------------------------------------
Kerri Panchuck also reports: Fannie Mae and Freddie Mac still owe the American public $140 billlion dollars. The Republicans are not addressing the problem, they are looking to do away with the GSE's and ignore the debt. The Democrats are just plain silent. Even the opinions of the stockholders and preferred shareholders are inconsequential.
-----------------------------------------------------------------
"A piece of legislation passed the New Jersey Senate that could financially penalize financial firms for failing to maintain vacant, foreclosed homes. The bill has to go through the state Assembly before it has a chance to become law, according to New Jersey.com."-Kerri Panchuck in Morning Radar.
-------------------------------------------------------------------
TBSWDailyShow says: The mortgage deduction has been around for 100 yrs. Lawrence Yun, the NAR chief economist says, loosing the mortgage deduction would lead to a 15% loss in total home equity, a loss of 250K-350k jobs and would slow sales 10%-15%.
Active prospecting works better than passive marketing. Get over the possible rejection. Call and meet face to face with people. Prospects are less likely to blow you off if the your contact is personal. Actively seek out buyers and sellers. Call prospective buyers and For Sale By Owners and your referral data base. You know this, but are you doing it?
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QE3 is the Treasury Department's way of bolstering our economy. This means the US government is expected to continue to buy longer term Treasury bonds and mortgage backed securities. This is what printing money means in practical terms. But since 50% of all re-fied distressed mortgages go back into distress, the Federal Gov't is throwing money down a rat hole. That is our money, the citizens of these United States money, which is being wasted.
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From TBWSDailyShow:
Thomas Eddison said, "Genius is 1% inspiration and 99% perspiration. Do you have an active plan for growing your business? Samuel Goldwyn said, "The harder I work the luckier I get". Babe Ruth, "It's hard to beat a person who never gives up". Gary Keller, "One scoop of talent is not as valuable as 10 scoops of tenacity". What are you going to do about your business this next year. Make a plan and stick to it. No matter how good you are at the paperwork in your business, without converting prospects to clients, your income is lower. Never delegate your lead generation activities. Marketing ideas are like diets. Which one works? All of them do, if you just do it. Every dollar you spend on your business, must generate a return. For example, if you spend a dollar in print marketing, it must generate a dollar plus some. So, how do you increase your rate of return? Spend more personal time with prospects and clients. If you are spending $5000 in print marketing, it should return $20k-$30k in closed business.
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TBSWDailyShow:
The number of first time homebuyers has dropped to the 2009 level. This means there are fewer buyers for the starter homes. Who then is buying the starter homes? Investors. What is the reason for the drop in first time home buyers? The FHA has tightened up its requirements. Most first time homebuyers use FHA. And has raised the price of mortgage insurance. Without the first time buyers, there will be fewer move up buyers in the future.
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Nationwide, housing prices are up 3.6% in the 3rd quarter over last year. Phoenix was up 20.6% and Atlanta finally reversed its price decline with a 0.1% price rise. Home prices rose in 17 of the 20 cities surveyed.-Kerri Ann Panchuck in HousingWire
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Housing Market Index-An index of over 300 home builders, which shows the demand for new homes. The index runs from 0-100, so a rating of 50 would mean that demand for new homes was average.
Read more: http://www.investopedia.com/terms/h/housingmarketindex.asp#ixzz2DjrOJdOh
The housing market index is at 46 up from 41 in October which is the highest since 2006. This is due to homebuilder's confidence.-cmlynski in HousingWire. But with superstorm Sandy requiring a surge in home building, what is the truth? What would the numbers be without that natural disaster?
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FHA is raising the mortgage insurance rates and g-fees next year. Also, FHA's mortgage insurance premiums, starting next year sometime, will be for life. Even if you, homeowner, have paid off 78% of your loan, you will be stuck with the PMI unless you refinance to a higher rate mortgage interest rate. So, buy now!
Friday, November 30, 2012
Auctions For All
There is a misconception that auction properties are just
for foreclosures or just for investors.
Not so! Any home or business or
vacant land or apartment building or any other real property can be sold at
a real estate auction. The cool thing about selling at
auction is that while in traditional real estate sales the negotiating takes the
price down, in auction sales the price is negotiated up! Sellers and buyers who participate in
auctions are more knowledgeable in the economics of the sale than traditional
buyers. That is because both the buyers
and sellers are educated up front about the process. With auctions, not only local buyers see the
marketing, but national and international buyers as well. For more information contact us at
RealEstateAuctions.com
Baby Boomers and Auctions
Baby boomers are an excellent market for auctions. These are the people who made their money in
the good times of our country’s economy, but are ready to sell. Many of these people have multiple properties
which may or may not have been income producing. Now that the baby boomers are well into
retirement, they want to sell. Many of
them are not on LinkedIn or otherwise networked. This means you will need to farm your
territory. Once you prove that auctions
work by selling one of their properties, they will likely ask for you to sell
the rest. They will be great references
for the future, encouraging other baby boomers who want to sell.
Friday, November 23, 2012
Spain needs buyers
Spain is so desperate for homebuyers, the country will give foreigners residency just to buy into the market. If you buy a home for more than 160,000 euros you get residency, but not a work permit.-HousingWire, jgaffney@housingwire.com.
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Real estate auctions are growing in popularity. I just read an article in Housingwire about a company in the NE doing auctions in the Carolinas. Now that I am in a real estate auction company, it seems more people are interested in it than I remembered seeing. Our company, RealEstateAuctions.com is holding a statewide auction in January. Check out our website for more information on auctions around the nation.
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Kerri Anne Panchuck in HousingWire says:
Refi's make up 81% of all mortgage applications right now. Adjustable rate mortgages make up 4% and are continuing to rise in popularity.
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According to cmlynski in HousingWire,
Bernanke said tighter lending conditions have been a major factor in the housing slowdown.
"It seems at this point the pendulum has swung too far the other way, and that overly tight lending standards may now be preventing creditworthy borrowers from buying homes," he recently said.
I reported a while back that banks were raising their acceptalbe credit score level. The question is will the banks loosen up their requirements? I think not until the regulations lighten up and the banks are allowed to charge more interest so they can make money on the loans. Basel III regulations are depressors for the banking industry.
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MHopkins at HousingWire reports: There has been a jump in payment delinquencies on recently refinanced mortgages. This problem will be with us through 2013.
Shadow inventory fell to 2.3 million homes.
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Will the fiscal cliff end the mortgage deduction?
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Real estate auctions are growing in popularity. I just read an article in Housingwire about a company in the NE doing auctions in the Carolinas. Now that I am in a real estate auction company, it seems more people are interested in it than I remembered seeing. Our company, RealEstateAuctions.com is holding a statewide auction in January. Check out our website for more information on auctions around the nation.
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Kerri Anne Panchuck in HousingWire says:
Refi's make up 81% of all mortgage applications right now. Adjustable rate mortgages make up 4% and are continuing to rise in popularity.
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According to cmlynski in HousingWire,
Bernanke said tighter lending conditions have been a major factor in the housing slowdown.
"It seems at this point the pendulum has swung too far the other way, and that overly tight lending standards may now be preventing creditworthy borrowers from buying homes," he recently said.
I reported a while back that banks were raising their acceptalbe credit score level. The question is will the banks loosen up their requirements? I think not until the regulations lighten up and the banks are allowed to charge more interest so they can make money on the loans. Basel III regulations are depressors for the banking industry.
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MHopkins at HousingWire reports: There has been a jump in payment delinquencies on recently refinanced mortgages. This problem will be with us through 2013.
Shadow inventory fell to 2.3 million homes.
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Will the fiscal cliff end the mortgage deduction?
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RealEstateAuctions.com is now hiring project Managers to
help service our auctions in Northwest Georgia.
Expected annual earnings for the position are $120,000-$300,000. For more information email jpierce@realestateauctions.com. We are, also hiring in all parts of the US, so contact the company through the website for other states in these United States.
Sunday, November 18, 2012
HUD chief Shaun Donavan said in a phone conference that 1.3 million Americans have been removed from the list of underwater mortgagors. Paul Muolo who is reporting in Origination News is waiting to see if it is true.
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FHA is $13.48 billion in the hole. "The FHA will likely ask Congress to petition the Treasury to make up the shortfall." So says Christina Mlynski in HousingWire. This is a bailout!
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C Mlynski reports in HousingWire: Due to declining inventory, housing prices are rising. The number of homes for sale in October declined 28.9% from a year earlier. "2012 looks like the turn around year for housing with significant increases in sales and prices", says Margret Kelly of ReMax.
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Mike Larson in Money and Markets says: Yes, there is a recovery, but it isn't strong due to the Federal Reserve artifically suppressing interest rates and Bernanke's "strategy of trying to inflate asset prices far beyond their intrinsic value". In other words, he expects a drop in the real estate market yet again.
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Bank of America has just been ranked the worst for customer service by consumers. So says TBWS.
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National home ownership has declined for four years, 2007-2011 especially for those aged 25-44. Renting has increased by almost the same amount, but not quite. Ownership is down 2.6% and rentership is up 2%. -mhopkins in HousingWire-. (The problem is that of all the articles I read, almost no one is saying that the problem comes from so many Americans going into bankruptcy or other sever credit problems. That means it may be seven years or so for the market to recover from the economic crisis in the form of housing recovery. Too many people made over reaching housing purchases and are now paying for it. We are seeing it in the form of a slow housing market.)
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Mortgage rates hit an all time low for the fixed rate at 3.34% as of yesterday. The 15 yr FRM hit 2.65%.
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The Irvine, Calif.-based foreclosure research firm reported 186,455 default notices, scheduled auctions and bank repossessions. That is up 3% from September and indicates that one out of every 706 U.S. homes faced a foreclosure filing last month, according to RealtyTrac as reported in HousingWire.
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I am adding my own real estate news from now on since I just changed companies and am soooo happy with the business model of this company.
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FHA is $13.48 billion in the hole. "The FHA will likely ask Congress to petition the Treasury to make up the shortfall." So says Christina Mlynski in HousingWire. This is a bailout!
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C Mlynski reports in HousingWire: Due to declining inventory, housing prices are rising. The number of homes for sale in October declined 28.9% from a year earlier. "2012 looks like the turn around year for housing with significant increases in sales and prices", says Margret Kelly of ReMax.
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Mike Larson in Money and Markets says: Yes, there is a recovery, but it isn't strong due to the Federal Reserve artifically suppressing interest rates and Bernanke's "strategy of trying to inflate asset prices far beyond their intrinsic value". In other words, he expects a drop in the real estate market yet again.
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Bank of America has just been ranked the worst for customer service by consumers. So says TBWS.
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National home ownership has declined for four years, 2007-2011 especially for those aged 25-44. Renting has increased by almost the same amount, but not quite. Ownership is down 2.6% and rentership is up 2%. -mhopkins in HousingWire-. (The problem is that of all the articles I read, almost no one is saying that the problem comes from so many Americans going into bankruptcy or other sever credit problems. That means it may be seven years or so for the market to recover from the economic crisis in the form of housing recovery. Too many people made over reaching housing purchases and are now paying for it. We are seeing it in the form of a slow housing market.)
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Mortgage rates hit an all time low for the fixed rate at 3.34% as of yesterday. The 15 yr FRM hit 2.65%.
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The Irvine, Calif.-based foreclosure research firm reported 186,455 default notices, scheduled auctions and bank repossessions. That is up 3% from September and indicates that one out of every 706 U.S. homes faced a foreclosure filing last month, according to RealtyTrac as reported in HousingWire.
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I am adding my own real estate news from now on since I just changed companies and am soooo happy with the business model of this company.
REA
Updates for 11-16-12
Many
New Auctions Scheduled on RealEstateAuctions.com!
Visit our homepage to see our events planned for IL, CA,
TX, NY, GA and FL! http://tinyurl.com/cxlmz6u
When is an Auction Not Really an
Auction?
Robert Lane visited one near San Francisco that had the
look and sounds…but was it really? http://tinyurl.com/dx6a4tf
Atlanta-area Housing For Sale: Why the
Sudden Shortage?
Steve Adkins looks into why there are relatively so few
listings in and around Atlanta. http://tinyurl.com/btwarwx
Meet Grace Tsang, Our New Team
Leader in San Jose, CA!
Tech industry
veteran, Realtor® and multi-state investor who’s got a real passion for real estate! http://tinyurl.com/c29fsdu
Auctions are Many Things, But are They
Beautiful?
Absolutely, says our Florida Team Leader Julie Smith
Searer, who brings back a report from the NAR convention in Orlando. http://tinyurl.com/bsqvaw3
Monday, November 12, 2012
Sunday, November 11, 2012
According to Elise Glink today, there will be 20% fewer borrowers in the coming years. This is due to banks lending less, requiring higher credit scores and larger down payments. This will hinder the housing recovery.
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A couple of the newsletters I read are saying that the Western world is reducing its credit borrowing.
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"Restructuring is the necessary condition for credit expansion and job growth. Without private-sector credit growth there can be no jobs. Without justice for investors, pension funds and banks defrauded to the tune of hundreds of billions of dollars, there can be no investor confidence to support private finance. And unless the Fed and other regulators in Washington break the cartel in the U.S. housing sector led by Fannie Mae, Freddie Mac and the top four banks, there will be no meaningful economic recovery for years. Instead we will face hyperinflation and social upheaval, both care of the well-intentioned economists on the FOMC."-Christopher Whalen in HousingWire also in www.zerohedge.com.
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Interest rates still hover at all-time lows. The 30 year fixed rate mortgage average was 3.39%. A year ago it was 4%. The 15 year FRM was 2.74% this year, whereas last year it was 2.96%.
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Fannie Mae has, apparently, reached agreements with nine mortgage insurers to be more efficient with short sales and deeds-in-lieu. This should help speed up the foreclosure prevention process as well. We will see.
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Wells Fargo has mailed refunds of mortgage fees to FHA borrowers. However, if the recipient cashes the check they are not allowed to sue WF for this practice.
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Superstorm Sandy could cost $100 billion. While the net economy of the Northeast will be reasonable, the income will be redistributed from home and business owners to the construction industry. This event is expected to drop the GDP 1/2 of a percent.
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Some community banks and credit unions are beginning to loan to home owners who have problems proving their income, such as the self-employed.- Paul Muolo in Origination News
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A couple of the newsletters I read are saying that the Western world is reducing its credit borrowing.
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"Restructuring is the necessary condition for credit expansion and job growth. Without private-sector credit growth there can be no jobs. Without justice for investors, pension funds and banks defrauded to the tune of hundreds of billions of dollars, there can be no investor confidence to support private finance. And unless the Fed and other regulators in Washington break the cartel in the U.S. housing sector led by Fannie Mae, Freddie Mac and the top four banks, there will be no meaningful economic recovery for years. Instead we will face hyperinflation and social upheaval, both care of the well-intentioned economists on the FOMC."-Christopher Whalen in HousingWire also in www.zerohedge.com.
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Interest rates still hover at all-time lows. The 30 year fixed rate mortgage average was 3.39%. A year ago it was 4%. The 15 year FRM was 2.74% this year, whereas last year it was 2.96%.
--------------------------------------------------------------------------------
Fannie Mae has, apparently, reached agreements with nine mortgage insurers to be more efficient with short sales and deeds-in-lieu. This should help speed up the foreclosure prevention process as well. We will see.
----------------------------------------------------------------------------------
Wells Fargo has mailed refunds of mortgage fees to FHA borrowers. However, if the recipient cashes the check they are not allowed to sue WF for this practice.
----------------------------------------------------------------------------------
Superstorm Sandy could cost $100 billion. While the net economy of the Northeast will be reasonable, the income will be redistributed from home and business owners to the construction industry. This event is expected to drop the GDP 1/2 of a percent.
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Some community banks and credit unions are beginning to loan to home owners who have problems proving their income, such as the self-employed.- Paul Muolo in Origination News
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Basel III may be killed or at least postponed.
Good news from Christina Mlynski in HousingWire:
"The Federal Reserve, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency issued notices Friday to postpone current regulatory capital rules for the Basel Committee on Banking Supervision until an unspecified date." Because of this the cost of real estate transactions will remain the same and banks will continue lending at current levels instead of tightening requirements. Let's all rejoice! Pray that Basel III will be killed entirely. (http://www.housingwire.com/news/bank-regulators-delay-date-basel-iii-capital-requirements)
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The Dodd-Frank bill is coming under numerous lawsuits. Some litigants are winning the legal fight to eliminate regulations. Since Romney didn't win the election, the big companies are going to court to fight this bill. So far the courts are favorable to the companies bringing the suites.
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According to TBSW:
According to LPS, mortgage delinquencies are up. They are at the highest level in four years. They expect more refi's and short sales in the coming months.
Fannie and Freddie are in the black for the first time in 6 yrs. Does this mean we will keep the GSE's?
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CMlynski reports in HousingWire:
"The 15-year FRM averaged 2.69%, with an average 0.7 point. This decreased from last week, which averaged 2.7%. The 15-year FRM average was 3.3% a year prior." This is good news for buyers. With housing prices rising and inventory down, we need all the good news we can get. http://www.housingwire.com/content/freddie-mac-mortgage-rates-remain-near-record-lows
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According to Cmlynski in HousingWire:
"On Nov. 1, the Federal Housing Finance Agency put in to place the short sale guidelines for both Freddie Mac and Fannie Mae. The guides will provide a more consistent and efficient approval process for servicers and borrowers."
Fannie Mae is happy with it's bulk REO sale and is planning on doing more. But, they don't sound as though it will be the way of the future. Just another tool in the shed.
http://www.housingwire.com/news/fannie-mae-pleased-reo-bulk-sale-pilot
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According to TBSW:
The median housing price is up 7.6% from this time last year.
Also, if you hear that HUD is broke, don't believe it. They have more capital than they did 4 yrs ago. It is just in a different account, but can be moved back to where it will be counted as following the law as to how much they must have.
The Mortgage Relief Act has not been extended. It expires at the end of the year. This will decrease home sales by 20%. This is the act which, during a short sale or loan modification, allows the principle not to be taxed as income. If it is not extended, distressed home owners will prefer to go into foreclosure or bankruptcy rather than be taxed when they cannot afford it. The average debt forgiveness on the average home is about $65,000.
15% of home sales contracts are falling through. The average credit score Fannie Mae rejected is now 734, two points higher than a year ago, and the average down payment rejected is 19%. This is because the powers-that-be are downsizing Fannie and Freddie. So, there will be fewer loans.
Reasonable underwriting standards must be established. We, also, need to keep the mortgage deduction in order to encourage a fragile housing market.
Because of superstorm Sandy, Barry Habib expects mortgage rates to fall again. We will see.
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Half of the community banks expect to make the choice in the next year of whether or not to stay independent. This is due to Basel III and Frank-Dodd.
"The Federal Reserve, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency issued notices Friday to postpone current regulatory capital rules for the Basel Committee on Banking Supervision until an unspecified date." Because of this the cost of real estate transactions will remain the same and banks will continue lending at current levels instead of tightening requirements. Let's all rejoice! Pray that Basel III will be killed entirely. (http://www.housingwire.com/news/bank-regulators-delay-date-basel-iii-capital-requirements)
--------------------------------------------------------------
The Dodd-Frank bill is coming under numerous lawsuits. Some litigants are winning the legal fight to eliminate regulations. Since Romney didn't win the election, the big companies are going to court to fight this bill. So far the courts are favorable to the companies bringing the suites.
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According to TBSW:
According to LPS, mortgage delinquencies are up. They are at the highest level in four years. They expect more refi's and short sales in the coming months.
Fannie and Freddie are in the black for the first time in 6 yrs. Does this mean we will keep the GSE's?
------------------------------------------------------------------------
CMlynski reports in HousingWire:
"The 15-year FRM averaged 2.69%, with an average 0.7 point. This decreased from last week, which averaged 2.7%. The 15-year FRM average was 3.3% a year prior." This is good news for buyers. With housing prices rising and inventory down, we need all the good news we can get. http://www.housingwire.com/content/freddie-mac-mortgage-rates-remain-near-record-lows
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According to Cmlynski in HousingWire:
"On Nov. 1, the Federal Housing Finance Agency put in to place the short sale guidelines for both Freddie Mac and Fannie Mae. The guides will provide a more consistent and efficient approval process for servicers and borrowers."
Fannie Mae is happy with it's bulk REO sale and is planning on doing more. But, they don't sound as though it will be the way of the future. Just another tool in the shed.
http://www.housingwire.com/news/fannie-mae-pleased-reo-bulk-sale-pilot
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According to TBSW:
The median housing price is up 7.6% from this time last year.
Also, if you hear that HUD is broke, don't believe it. They have more capital than they did 4 yrs ago. It is just in a different account, but can be moved back to where it will be counted as following the law as to how much they must have.
The Mortgage Relief Act has not been extended. It expires at the end of the year. This will decrease home sales by 20%. This is the act which, during a short sale or loan modification, allows the principle not to be taxed as income. If it is not extended, distressed home owners will prefer to go into foreclosure or bankruptcy rather than be taxed when they cannot afford it. The average debt forgiveness on the average home is about $65,000.
15% of home sales contracts are falling through. The average credit score Fannie Mae rejected is now 734, two points higher than a year ago, and the average down payment rejected is 19%. This is because the powers-that-be are downsizing Fannie and Freddie. So, there will be fewer loans.
Reasonable underwriting standards must be established. We, also, need to keep the mortgage deduction in order to encourage a fragile housing market.
Because of superstorm Sandy, Barry Habib expects mortgage rates to fall again. We will see.
------------------------------------------------------------------------
Half of the community banks expect to make the choice in the next year of whether or not to stay independent. This is due to Basel III and Frank-Dodd.
Sunday, November 4, 2012
According to Elise Glink today, there will be 20% fewer borrowers in the coming years. This is due to banks lending less, requiring higher credit scores and larger down payments. This will hinder the housing recovery.
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A couple of the newsletters I read are saying that the Western world is reducing its credit borrowing.
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A couple of the newsletters I read are saying that the Western world is reducing its credit borrowing.
Monday, October 29, 2012
Banks Lending Less
From Richard Weidemeir in MoneyNews:
Single-family home starts were running at an annual rate of 533,000 in September, whereas single-family home sales were only running at an annual rate of 389,000. The builders are likely getting a bit ahead of themselves. However, it is a nice jump from the annual rate of single-family home sales of 306,000 last year. Of course, last year’s sales were the lowest on record. So, the housing market is still abysmal — well below the 1.4 million-unit rate of July 2005, but it is a green shoot right now.
There is a boom in apartment construction, not condos or townhomes.
Read more: Green Shoots and Brown Shoots
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Have you considered how the spec housing builders will be able to move forward? They had to get rid of the land lots they had bought in order to avoid as much of the housing bubble pop as possible. Now, they must buy land and build on it in order to sell homes. Where will they get the money to buy the land and then the credit to build the spec homes?
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Home prices are up 2.6% over all in the US. The main markets, year over year, benefiting from the rise are: Minnesota 1.2%, Arizona 14.1%. Rhode Island's prices dropped 0.6%.
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All this stimulus spending is now hurting the banks. The stimulus spending is lowering the interest rates the banks can make on loans. They aren't making enough money on loans, so they are only lending to the highest credit score holders. This is dropping their stock prices. The longer the QE3 is in effect, the less the banks will lend and the fewer buyers there will be because there will be so few mortgages allowed. It will be rough on the housing industry as a whole. The only winners I can see are the big box stores which will be making money from repairs and renovations a people stay in their homes longer.
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Beware reverse mortgages. Warn the people you know to watch out for hidden fees and misleading statements.
"In some cases, widows or widowers have found themselves on the brink of eviction after they were pressured to keep their name off the deed without being told they could be left facing foreclosure if their spouse died." - Monica Russo of the Houston Chronicle.
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According to HousingWire, Warren Buffet is still betting heavly on a housing recovery.
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TBSW:
The Basel III will require the banks to raise captial holdings from 2% to 7%. This means less lending from said banks. However, the "too big to fail" banks will need to have 9.5%. Raising all this capital is why small banks may go out of business. There are other percentages and fees which are required as well. The banks will be required to fill these reserves before handing out dividends. The price we will pay is a slower recovery and more expensive and scarce money being lent. Basel III is slowly being implemented, but is not required to be in full compliance until 2018. Basel III means a much slower recovery for the housing industry. The US interpretation of Basel III is more strict than the European interpretation. This will handicapp the US banks in competition with the European.
The Basel Accords are held by the Basel Committee on Banking Supervision in Basel, Switzerland. It is usually attended by the central banks of the G-20. It is to agree on terms of debt and decided what banks must hold in case of any systemic bank failures. The committee does not hold any authority to enforce any of the agreements. Each country is in charge of enforcing the recommendations.
(I recommend you subscribe to the email at www.tbwsdailys. All this dry, dull information is packaged in a usable, pleasant format by Brian Stevens and Frank Garay.)
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FHFA has reduced the second mortgage pay out to $6000. Also, Borrowers dealing with the loss of a co-borrower, divorce, legal separation, illness, disability or a distant employment transfer will have the option of getting a short sale approved by the servicer before they actually default on a payment. Fannie also is culling down on the amount of documentation required to complete a short sale under hardship circumstances and eliminating certain documentation requirements for borrowers who are 90 days or more delinquent or living with a credit score below 620.
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The Mortgage Bankers Association is forecasting a 25% decline in mortgage originations in 2013, according to HousingWire. Fixed mortgage rates went from 3.57% up to 3.63%. The number of mortgage originations, also, fell last month, but this could be due to the time of year.
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TBSW:
Mississippi and West Virginia have the lowest credit scores, yet have the highest home ownership. These two states didn't engage in the silly, subprime lending mess that the rest of the country did. Instead, they looked at the mortgagor's ability to pay. California and Florida have much higher credit scores, and yet had terrible foreclosure rates.
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There are now 5.64 million properties in distress according to LPS in HousingWire. These are properties which are 30 days or more overdue for payment, but not in foreclosure.
Single-family home starts were running at an annual rate of 533,000 in September, whereas single-family home sales were only running at an annual rate of 389,000. The builders are likely getting a bit ahead of themselves. However, it is a nice jump from the annual rate of single-family home sales of 306,000 last year. Of course, last year’s sales were the lowest on record. So, the housing market is still abysmal — well below the 1.4 million-unit rate of July 2005, but it is a green shoot right now.
There is a boom in apartment construction, not condos or townhomes.
Read more: Green Shoots and Brown Shoots
----------------------------------------------------------------------------
Have you considered how the spec housing builders will be able to move forward? They had to get rid of the land lots they had bought in order to avoid as much of the housing bubble pop as possible. Now, they must buy land and build on it in order to sell homes. Where will they get the money to buy the land and then the credit to build the spec homes?
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Home prices are up 2.6% over all in the US. The main markets, year over year, benefiting from the rise are: Minnesota 1.2%, Arizona 14.1%. Rhode Island's prices dropped 0.6%.
-----------------------------------------------------------------------------
All this stimulus spending is now hurting the banks. The stimulus spending is lowering the interest rates the banks can make on loans. They aren't making enough money on loans, so they are only lending to the highest credit score holders. This is dropping their stock prices. The longer the QE3 is in effect, the less the banks will lend and the fewer buyers there will be because there will be so few mortgages allowed. It will be rough on the housing industry as a whole. The only winners I can see are the big box stores which will be making money from repairs and renovations a people stay in their homes longer.
-----------------------------------------------------------------------------
Beware reverse mortgages. Warn the people you know to watch out for hidden fees and misleading statements.
"In some cases, widows or widowers have found themselves on the brink of eviction after they were pressured to keep their name off the deed without being told they could be left facing foreclosure if their spouse died." - Monica Russo of the Houston Chronicle.
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According to HousingWire, Warren Buffet is still betting heavly on a housing recovery.
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TBSW:
The Basel III will require the banks to raise captial holdings from 2% to 7%. This means less lending from said banks. However, the "too big to fail" banks will need to have 9.5%. Raising all this capital is why small banks may go out of business. There are other percentages and fees which are required as well. The banks will be required to fill these reserves before handing out dividends. The price we will pay is a slower recovery and more expensive and scarce money being lent. Basel III is slowly being implemented, but is not required to be in full compliance until 2018. Basel III means a much slower recovery for the housing industry. The US interpretation of Basel III is more strict than the European interpretation. This will handicapp the US banks in competition with the European.
The Basel Accords are held by the Basel Committee on Banking Supervision in Basel, Switzerland. It is usually attended by the central banks of the G-20. It is to agree on terms of debt and decided what banks must hold in case of any systemic bank failures. The committee does not hold any authority to enforce any of the agreements. Each country is in charge of enforcing the recommendations.
(I recommend you subscribe to the email at www.tbwsdailys. All this dry, dull information is packaged in a usable, pleasant format by Brian Stevens and Frank Garay.)
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FHFA has reduced the second mortgage pay out to $6000. Also, Borrowers dealing with the loss of a co-borrower, divorce, legal separation, illness, disability or a distant employment transfer will have the option of getting a short sale approved by the servicer before they actually default on a payment. Fannie also is culling down on the amount of documentation required to complete a short sale under hardship circumstances and eliminating certain documentation requirements for borrowers who are 90 days or more delinquent or living with a credit score below 620.
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The Mortgage Bankers Association is forecasting a 25% decline in mortgage originations in 2013, according to HousingWire. Fixed mortgage rates went from 3.57% up to 3.63%. The number of mortgage originations, also, fell last month, but this could be due to the time of year.
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TBSW:
Mississippi and West Virginia have the lowest credit scores, yet have the highest home ownership. These two states didn't engage in the silly, subprime lending mess that the rest of the country did. Instead, they looked at the mortgagor's ability to pay. California and Florida have much higher credit scores, and yet had terrible foreclosure rates.
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There are now 5.64 million properties in distress according to LPS in HousingWire. These are properties which are 30 days or more overdue for payment, but not in foreclosure.
Monday, October 22, 2012
Mortgages Harder to Get
TBWS:
FHA is financing fewer loans and conventional mortgages are up the same amount. So, expect your buyers to get more conventional loans than FHA loans.
The average credit score of accepted home buyers is 750, far above the score of most buyers in any age range.
(It will be harder for your buyers to get loans. Prepare them ahead of time so that you both succeed. Work with a mortgage loan officer to help your potential buyers raise their credit score.)
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MoneyNews:
The US will have its credit rating down graded again in 2013 if we experience the fiscal cliff. The whole world economy will increase by only 1.7% in 2013. This means most countries are in the red or heading there instead of growing and decreasing their debt. The US credit rating was dropped from AAA to AA+ on Aug. 5, 2012 by Standard and Poor. On top of that, the percentage of people in the middle class is declining. This will allow fewer people to own homes.
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HousingWire:
FHFA may start helping Fannie Mae and Freddie Mac go after strategic defaulters. Strategic defaulters are those home owners who walk away from homes when they are able to afford the payments. "The Inspector General suggests the FHFA begin to routinely gather info related to deficiencies at the GSEs. After analyzing the data, the FHFA should then manage the deficiency collection process."
Watch out, the Feds are coming for you if you walk away, but can afford the payments.
FHA is financing fewer loans and conventional mortgages are up the same amount. So, expect your buyers to get more conventional loans than FHA loans.
The average credit score of accepted home buyers is 750, far above the score of most buyers in any age range.
(It will be harder for your buyers to get loans. Prepare them ahead of time so that you both succeed. Work with a mortgage loan officer to help your potential buyers raise their credit score.)
----------------------------------------------------------------------------------
MoneyNews:
The US will have its credit rating down graded again in 2013 if we experience the fiscal cliff. The whole world economy will increase by only 1.7% in 2013. This means most countries are in the red or heading there instead of growing and decreasing their debt. The US credit rating was dropped from AAA to AA+ on Aug. 5, 2012 by Standard and Poor. On top of that, the percentage of people in the middle class is declining. This will allow fewer people to own homes.
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HousingWire:
FHFA may start helping Fannie Mae and Freddie Mac go after strategic defaulters. Strategic defaulters are those home owners who walk away from homes when they are able to afford the payments. "The Inspector General suggests the FHFA begin to routinely gather info related to deficiencies at the GSEs. After analyzing the data, the FHFA should then manage the deficiency collection process."
Watch out, the Feds are coming for you if you walk away, but can afford the payments.
Monday, October 15, 2012
The Fed, Barry Habib, Jaime Dimon and more
KPanchuck reports in HousingWire:
Home Depot CEO Frank Blake thinks the housing market recovery will take at least two years due to "lingering issues in the mortgage credit market and a large inventory of distressed properties".
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It looks like three top Fed officials are ready to raise interest rates. This is suppose to allow more people to go back to work. We will see.
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The IMF is saying that a zone wide depression in Europe is coming unless Germany leaves the union and the other countries are allowed to compete with their own currencies. All that talk about austerity and stimulus hasn't worked. This will affect us here in the US including the real estate market.
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Leon Pannetta is saying we are ripe for a cyber attack that would wipe out all information in the computers it attacks. In other words, have your files on seperate drive and on paper to be able to reconstruct your business if the worst happens.
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JP Morgan Chase CEO Jaime Dimon says mortgage servicing costs will remain elevated until 2014 then will decline significantly. He says it is a rough prediction, but reducing costs will be wonderful seeing that we will have a 3% tax on real estate sales starting in January 2013.
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The housing recovery is not the same as the mortgage recovery. Because of the refi's, there will be fewer repeat buyers. The refi mortgage will keep people in their homes longer.
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For your buyers who want a home, but have bad credit, they can go to a mortgage loan officer to work on a credit restoration plan or to the National Foundation for Credit Counseling website, nfcc.org, to set up an appointment for help. It is free or very low cost according to Clark Howard.
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Barry Habib recommends that we real estate agents list properties in the round figures since buyers want to see properties in round figures such as $250- $300 or $100-$275- no 999 figures. Round figures will show up on more searches than, say $249,900. $250,000 will show up on $200-$250,000 searches as well as $250,000-$300,000. More searches, more sales.
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Elizebeth Duke, a Federal Reserve board member, says there are 4 million vacant homes not even on the market. This doesn't include the vacation homes or homes in between being moved into after sales. Then there is the 1.4 million shadow inventory homes which are at least 3 months behind in mortgage payments. I still haven't heard what the lenders actually plan to do about all this.
Home Depot CEO Frank Blake thinks the housing market recovery will take at least two years due to "lingering issues in the mortgage credit market and a large inventory of distressed properties".
-----------------------------------------------------------------------------------
It looks like three top Fed officials are ready to raise interest rates. This is suppose to allow more people to go back to work. We will see.
------------------------------------------------------------------------------------
The IMF is saying that a zone wide depression in Europe is coming unless Germany leaves the union and the other countries are allowed to compete with their own currencies. All that talk about austerity and stimulus hasn't worked. This will affect us here in the US including the real estate market.
-------------------------------------------------------------------------------------
Leon Pannetta is saying we are ripe for a cyber attack that would wipe out all information in the computers it attacks. In other words, have your files on seperate drive and on paper to be able to reconstruct your business if the worst happens.
--------------------------------------------------------------------------------------
JP Morgan Chase CEO Jaime Dimon says mortgage servicing costs will remain elevated until 2014 then will decline significantly. He says it is a rough prediction, but reducing costs will be wonderful seeing that we will have a 3% tax on real estate sales starting in January 2013.
--------------------------------------------------------------------------------------
The housing recovery is not the same as the mortgage recovery. Because of the refi's, there will be fewer repeat buyers. The refi mortgage will keep people in their homes longer.
---------------------------------------------------------------------------------------
For your buyers who want a home, but have bad credit, they can go to a mortgage loan officer to work on a credit restoration plan or to the National Foundation for Credit Counseling website, nfcc.org, to set up an appointment for help. It is free or very low cost according to Clark Howard.
----------------------------------------------------------------------------------------
Barry Habib recommends that we real estate agents list properties in the round figures since buyers want to see properties in round figures such as $250- $300 or $100-$275- no 999 figures. Round figures will show up on more searches than, say $249,900. $250,000 will show up on $200-$250,000 searches as well as $250,000-$300,000. More searches, more sales.
-----------------------------------------------------------------------------------------
Elizebeth Duke, a Federal Reserve board member, says there are 4 million vacant homes not even on the market. This doesn't include the vacation homes or homes in between being moved into after sales. Then there is the 1.4 million shadow inventory homes which are at least 3 months behind in mortgage payments. I still haven't heard what the lenders actually plan to do about all this.
Tuesday, October 9, 2012
Have you heard about H.R. 4646. It will impose a 1% transaction tax on all monetary transactions- bank deposits, bank withdrawals, stock transactions, debit cards,etc. Look it up on snopes.com Debt Free America Act. This money would go to third world countries.
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50% of all refi's go in to foreclosure again. Why are we throwing money down a rat hole?
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In January, a 3% tax will be levied on all house sales. Be prepared.
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Some 68 million Americans feel homeowners should be allowed to strategically default on their mortgages without any consequences, a JZ Analytics survey finds. A strategic default is when a homeowner, who has the ability to make a payment on a house that is not underwater, decides to walk away and let the house go into foreclosure
Read more: Zogby: 68 Million Say It’s OK to Default on Mortgage
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"FHA will not be participating in the REO to Rental program", reports Jacob Gaffney of HousingWire.
I guess the foreclosures will sit and deteriorate as usual.
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50% of all refi's go in to foreclosure again. Why are we throwing money down a rat hole?
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In January, a 3% tax will be levied on all house sales. Be prepared.
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Some 68 million Americans feel homeowners should be allowed to strategically default on their mortgages without any consequences, a JZ Analytics survey finds. A strategic default is when a homeowner, who has the ability to make a payment on a house that is not underwater, decides to walk away and let the house go into foreclosure
Read more: Zogby: 68 Million Say It’s OK to Default on Mortgage
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"FHA will not be participating in the REO to Rental program", reports Jacob Gaffney of HousingWire.
I guess the foreclosures will sit and deteriorate as usual.
Wednesday, October 3, 2012
Fannie and Freddie have sold 1.2 million of their foreclosures. They are now selling pools of properties. The investors are not necessarily American.
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Bank of America is still not releasing its foreclosure back log. They are laying off 16,000 employees. Maybe they will be ready to let loose of their inventory by November. They did get a bunch of stimulus money from this administration. Maybe they are obeying their political masters and holding off releasing the load of foreclosures until after the election.
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Mit Romney is suggesting a 20% across the board income tax reduction, but we might loose the mortgage deduction as well. Personally, I prefer Herman Cain's plan 9-9-9 which would start us on the track to the fair tax plan. That would allow us to spend as much or as little as we want to be taxed and free up our economy in every way including real estate.
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Brian Collins, (Oct 2, 2012) Origination News writes:
Community banks may be driven from the single family mortgage market unless changes are made to the Basel III. Basel III is the third installment of the Basel Accords. It increases the bank liquidity and bank leverage requirements (more regulation). We are already seeing community banks being bought out by larger regional banks because the regulatory costs have increased to the point that the local banks can't make a profit. Basel III will make the situation worse. The OECD is the Organization for Economic Co-operation and Development which is an international economic organization of 34 countries founded in 1961 to stimulate economic progress and trade, according to Wikipedia. They are saying that Basel III will decrease annual GDP by 05-.15%. We can't afford any more decrease in our economy. Our economy is only growing at less than 2% as it is. However, the Basel III doesn't affect the GSE's, only the less than mega banks.
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Jon Prior at HousingWire say:
Freddie Mac is requiring banks to buy back mortgages to allow the Federal Gov't to print money.
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Kerry Anne Panchuck of HousingWire writes:
Borrowers with second liens owned and serviced by Bank of America ($9.08 0.15%) may qualify to get their subordinate debt extinguished entirely. But no letter, no chance of qualifying.
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Bank of America may be deleting these second mortgages, but we, the tax payers, will still be paying for BoA's mistakes in loaning to the defaulting parties because of the stimulus money they got.
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TBWS says:
Stop all loan modifications because between 1/3 and 1/2 of the modified loans default. Modifications perform worse than the worst of any subprime loan. Doing loan modifications just increase loan defaults. Where is the business sense in that? We should just get the foreclosures and short sales out of the way because it doesn't matter to us, the tax payers, who is in the house. 90% of the new mortgages succeed. This will get us out of the default cycle and put our real estate industry back on solid footing. Modifying loans is financing the housing failure. It sounds good, but is just flushing taxpayer's dollars down the toilet.
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Fannie Mae has just pulled the contracts with many of their asset managers. Who will put the foreclosures on the market now?
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Peter Schroeder in The Hill says:
Three states are challenging Dodd-Frank in court. They are Michigan, Oklahoma and South Carolina. They are saying that Dodd-Frank creats death panels for companies. (I hope they win).
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Bank of America is still not releasing its foreclosure back log. They are laying off 16,000 employees. Maybe they will be ready to let loose of their inventory by November. They did get a bunch of stimulus money from this administration. Maybe they are obeying their political masters and holding off releasing the load of foreclosures until after the election.
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Mit Romney is suggesting a 20% across the board income tax reduction, but we might loose the mortgage deduction as well. Personally, I prefer Herman Cain's plan 9-9-9 which would start us on the track to the fair tax plan. That would allow us to spend as much or as little as we want to be taxed and free up our economy in every way including real estate.
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Brian Collins, (Oct 2, 2012) Origination News writes:
Community banks may be driven from the single family mortgage market unless changes are made to the Basel III. Basel III is the third installment of the Basel Accords. It increases the bank liquidity and bank leverage requirements (more regulation). We are already seeing community banks being bought out by larger regional banks because the regulatory costs have increased to the point that the local banks can't make a profit. Basel III will make the situation worse. The OECD is the Organization for Economic Co-operation and Development which is an international economic organization of 34 countries founded in 1961 to stimulate economic progress and trade, according to Wikipedia. They are saying that Basel III will decrease annual GDP by 05-.15%. We can't afford any more decrease in our economy. Our economy is only growing at less than 2% as it is. However, the Basel III doesn't affect the GSE's, only the less than mega banks.
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Jon Prior at HousingWire say:
Freddie Mac is requiring banks to buy back mortgages to allow the Federal Gov't to print money.
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Kerry Anne Panchuck of HousingWire writes:
Borrowers with second liens owned and serviced by Bank of America ($9.08 0.15%) may qualify to get their subordinate debt extinguished entirely. But no letter, no chance of qualifying.
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Bank of America may be deleting these second mortgages, but we, the tax payers, will still be paying for BoA's mistakes in loaning to the defaulting parties because of the stimulus money they got.
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TBWS says:
Stop all loan modifications because between 1/3 and 1/2 of the modified loans default. Modifications perform worse than the worst of any subprime loan. Doing loan modifications just increase loan defaults. Where is the business sense in that? We should just get the foreclosures and short sales out of the way because it doesn't matter to us, the tax payers, who is in the house. 90% of the new mortgages succeed. This will get us out of the default cycle and put our real estate industry back on solid footing. Modifying loans is financing the housing failure. It sounds good, but is just flushing taxpayer's dollars down the toilet.
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Fannie Mae has just pulled the contracts with many of their asset managers. Who will put the foreclosures on the market now?
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Peter Schroeder in The Hill says:
Three states are challenging Dodd-Frank in court. They are Michigan, Oklahoma and South Carolina. They are saying that Dodd-Frank creats death panels for companies. (I hope they win).
Sunday, September 9, 2012
Return to the Gold Standard
Steve Forbes is saying that we will have to return to the gold standard if we continue to have low interest rates and the federal government buying treasury holdings (bonds) and mortgage-backed securities from banks. So, if we return to the gold standard, what effect will this have on the price of real estate? We know that it would raise the price of gold and strengthen the dollar, but what about real estate values? Comments anyone?
Monday, August 20, 2012
House prices rising
Have you noticed that house prices are rising even though there are 5.5-6 million foreclosures waiting to go on the market? It is my belief that because the banks got big bucks from the present administration, they are saving the inventory for after the election.
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