Debbie Ward-Terry

Archive for June, 2010

In a 409-5 vote, House lawmakers have passed a standalone bill that would extend for three months Wednesday’s deadline for closing on a home purchase in order to claim the federal homebuyer tax credit.  The Senate could vote as soon as tomorrow.  Without an extension, the National Association of Realtors estimates as many as 180,000 homebuyers who were under contract by April 30 may miss the June 30^th closing deadline, including 14,830 in Florida.  The Senate is already on record supporting an extension, having amended a bill on June 16 to push the deadline back to Sept. 30.  But other provisions of that bill, the “American Jobs and Closing Tax Loopholes Act of 2010,” have proved controversial, prompting House lawmakers to introduce a standalone bill.  While some observers think HR 5623, “The Homebuyer Assistance and Improvement Act,” could sail through without further delay, there’s no guarantee.  Keep your fingers crossed.

Fannie Mae is considering punishing people that walk away from their unpaid mortgages.  Their goal is force homeowners faced with foreclosure to surrender their homes through either a lender-approved short sale of by a deed in lieu.   There are alternatives for distressed homeowners.  Visit www.HelpMeCDPE.com or call 863-577-2600 and ask to speak with a Certified Distressed Property Expert.  To read the entire article in the Ledger about Fannie Mae’s threat to punish homeowners that simply walk away from their mortgage click HERE.

Finally some good news regarding the foreclosures in Florida.  The foreclosure filings were down significantly for the first quarter in comparison to the previous two years.  I believe this is in part due to the fact that the banks are finally getting easier to work with regarding short sales, which are keeping struggling homeowners from foreclosure.  As a Certified Distressed Property Expert (CDPE), the process is becoming a little easier, although still time consuming.  But helping homeowners avoid the dreaded “F” word gives me great satisfaction. 

Click HERE to read the entire article in today’s Ledger regarding foreclosure filings being down during the first quarter of 2010.

The Federal Reserve’s latest region-by-region analysis of the national economy, the so-called “Beige Book” released last week, has an important message for anyone interested in real estate: It’s a gradual recovery out there, but it’s for real and it should prove durable. Tim Becker, director of the University of Florida’s Bergstrom Center for Real Estate Studies said, “Results of our first quarter survey indicate that the real estate market in Florida has hit bottom and is in the process of stabilizing across most property types”

The Fed’s report, which is based on detailed assessments from 12 member banks spread around the country, noted that the home purchase tax credits stimulated sales as they were intended to do. And, most economists in the Federal Reserve System think that low interest rates and fairly low prices will continue to make the (housing) market attractive for prospective buyers.

Now, no one is predicting a break-out of big-time home price appreciation across the country anytime soon. But the IAS (Integrated Asset Services) numbers suggest that home buyers and owners can at least be confident that we’ve reached or passed the bottom in most areas.  UF’s recent report says Florida real estate markets show the first tentative signs of being on the verge of recovering from the most painful recession in the state’s history.

Of course there are still some major roadblocks in the way of any full economic and housing market recovery. Topping the list is the high and persistent unemployment numbers. So, does the Federal Reserve have it right?  Are we on the road of a gradual recovery?  As usual, the picture is complicated, and we all wish we had a crystal ball. But overall, we are seeing more activity, so I think the Federal Reserve probably has the outlook pegged about right.

According to the National Association of Realtors 2009 Profile of Home Buyers and Sellers 90% of home buyers used the Internet when searching for a home.  Realty World Homes of Distinction is now providing sellers maximum exposure on the Internet through a National Listing Distribution Program.  Within 72 hours of listing your home with any Realty World Homes of Distinction agent it will be displayed on numerous major national real estate website portals, providing instant, maximum exposure and increased search results on all of our listing. 

Below is a list of some of the sites our listings are automatically fed too.

Beware of shady short sale transactions, and investors flipping to make a quick buck.  There are bad apples in every bunch, and the real estate profession is no different.   Two Connecticut real estate agents found a way to profit in the housing bust: Buy low, sell fast. Their tactic was also illegal. The two are scheduled to be sentenced in Hartford’s federal court in August after pleading guilty to fraud. Their crime involved persuading lenders to approve the sale of homes for less than the balance owed — known as a short sale — without disclosing that there were better offers.  They then flipped the houses for a profit.  Believe it or not, this is also happening right here in Central Florida.

The scam involves a practice called “flipping,” In that scheme, investors or home buyers hire realtors to assess a home for less than its market value and convince banks to accept a sale at an undervalued price.  The buyer conceals from the lender that he has lined up a higher offer and then quickly resells the property for a profit.

Short sales are an important tool that can help both the bank and the borrower it’s just that greedy people are always trying to find ways of profiting.  The Federal Bureau of Investigation, the California Department of Real Estate and mortgage finance company Freddie Mac have warned that such schemes may be spreading after a plunge in values left homeowners owing more than their properties are worth. The scams threaten to deepen losses for lenders that are increasingly agreeing to short sales as an alternative to more costly foreclosures.

An Obama administration effort to boost short sales may increase incentives for fraud, Neil Barofsky, special inspector general for the Troubled Asset Relief Program, wrote in an April 20 report to Congress. The government, through its Home Affordable Foreclosure Alternatives Program, that month began offering as much as $1,500 to servicers, $2,000 to investors and $3,000 to homeowners who close short sales.  “It appears that the program may lack necessary antifraud protections,” Barofsky wrote.

The Treasury has “put reasonable protections in place” to prevent short-sale fraud, requiring that the buyer and seller have no hidden relationship and banning most resales within 90 days, said Laurie Maggiano, policy director of the department’s Homeownership Preservation Office in Washington.  But the experienced flippers are still finding a way around it.

If you are looking for a job you dress for success and sell yourself to the person that is hiring. Well, when it comes to selling your home, it’s important to dress it to sell too. Staging homes has become increasingly popular because it works.

There are some options for getting your home sellable, you can hire an expert to stage your home, or an experienced real estate agent will also have many valuable tips. It is important that you look at your home from a buyer’s perspective. The buyer needs to focus on your home when they are there for a showing, not get distracted by your personal stuff.

Below are a few important tasks to focus on when staging your home:

1. De-clutter: We all accumulate a lot of clutter and then get used to living with it. Clutter is the biggest distraction for buyers. If you are serious about selling your home, kill two birds with one stone, and go ahead and box up all the extra clutter in your home. It will make it more sellable, and you will be ahead of the game when it comes to packing when you get ready to move.

2. De-Personalize: Put away the family photos and trinkets. The buyer needs to imagine their family living in your home, not yours. Besides, you’re moving…you need to pack them up anyway.

3. Deep clean: A dirty house is a big turn off for buyers. Make your home as fresh and clean as you can. It’s just too easy to lose a buyer’s interest due to something that really is such an easy fix.

4. Lighten and brighten: Light and bright is best for showing your home. Open the blinds, and turn on the lights. Check light bulbs and make sure they are working properly.

5. First impressions are important. A buyer will begin looking at your home the minute they pull in the driveway. Keep your yard manicured; make sure the front porch and the front door are clean. Flowers by the front door always add a special touch and make the buyer feel welcome.

Doing these five things will help improve the look and feel of your home. When a buyer can see their belongings and their family in your home, the better your chances are of selling it.

WOW…where were these interest rates when I was buying my house? On Friday, conventional fixed mortgage rates touched a new all time record low. The 30-year fixed mortgage rate available to well-qualified consumers at 1 point origination dropped to 4.375%, from 4.5%. The 15-year fixed-rate also declined, from 4% to 3.875%. Mortgage rates have never been this low.

According to Realty Times, the decline in mortgage rates stemmed from a big increase in mortgage-backed securities prices Friday. MBS prices, which drive mortgage rates in the opposite direction, gained +21/32 (FNMA 30-yr 4.5 at 102.23) on less than spectacular jobs numbers and more European debt concerns, this time in Hungary. Typically when we see significant declines in stocks as we have lately, mortgage rates improve.

Today’s Mortgage Rates – available to well-qualified consumers paying a standard .07 to 1 point origination.

30-yr fixed-rate – 4.375%
15-yr fixed-rate – 4.000%
/1 ARM rate – 3.500%
FHA 30-yr fixed-rate – 4.375%
FHA 15-yr fixed-rate – 3.875%
FHA 5/1 ARM rate – 3.500%
VA 30-yr fixed-rate – 4.625%
Jumbo 30-yr fixed-rate – 5.375%
Jumbo Conforming 30-yr fixed-rate – 4.625%

FreeRateUpdate.com researches over 2 dozen wholesale lenders’ rate sheets for brokers daily to determine the most accurate rates available to well-qualified borrowers at a standard origination fee of about 1 point. These rates are commonly referred to as “par rates” by loan officers.