Apr 30, 2013 | Housing Analysis
According to the the latest Foreclosure Inventory Analysis showed nearly 1.5 million properties were currently in the foreclosure process or being held by banks as Real Estate Owned.
This was up 9 percent from the first quarter of 2012, but down significantly from the apex of foreclosure activity — 2.2 million units — in December 2010.
What Is Distressed Property?
“Distressed property” is a blanket term for homes in foreclosure, short sale or that are REO (Real Estate Owned).
Below are definitions of different types of distressed real estate, so that you can be familiar with the terms.
- Foreclosure: When a homeowner has defaulted on their mortgage for a specified period of time, the bank takes possession of the real estate.
- Short Sale: A homeowner facing foreclosure may request a short sale from their lender to sell the property for less than what is owed.
- REO: Real Estate Owned properties have gone through foreclosure and are held by the bank. This increases the possibility of purchasing these homes at a discount because maintaining an REO is costly for a lender.
All three scenarios offer opportunities for substantial savings, yet all include stipulations with regard to the contract and terms of purchase.
Special Requirements With Distressed Property Purchases
When you buy this type of property, you are dealing with a financial institution instead of a private seller, so it may take more time to get to the closing table.
Be prepared for a longer than normal communication cycle as there are often delays when working with the bank or mortgage lender to come to a decision on an acceptable offer and closing date.
Unfortunately, many distressed properties have more deferred maintenance and repair issues
If you are willing to take the chance and be patient, a distressed property could pay off in terms of a lower purchase price.
Additionally, most buyers of distressed properties see an increase in the value of their Massachusetts real estate within a short time of purchase.
In the end, it is strongly advised that buyers work with an experienced property expert when interested in distressed properties because of the additional paperwork and requirements to complete the transaction.
Apr 23, 2013 | Around The Home
If you’ve been considering taking your home in a green direction, April is the perfect month to make an environmentally friendly update.
Installing a solar energy system may be a very smart way to help the environment.
Plus, solar panels turn sunlight into energy that can save you money!
The federal government and many states are now providing tax incentives and rebates for installing solar panels in 2013 which make this an excellent opportunity to go green this spring.
However, there are many installers that might not have the necessary experience, so be sure to ask the questions below when searching for your solar energy system.
How many solar panel systems have they installed?
You want to make sure to find a reputable company that has significant solar experience and has successfully completed at least 50 installations.
Ask for references before you sign anything.
What is the output in kWh per year?
Many times, solar panel brands will claim to be more efficient than others.
You’ll want to weigh the annual output against the price to determine what system is going to be the most cost effective for your Massachusetts home.
It is important to note that you should do an energy audit to see how you are using the power in your home before sizing the solar power replacement system.
You may be able to install a significantly smaller, and less costly, system if you learn how you can cut your power consumption prior to installing your new solar panels.
How long is the warranty on the panels?
Most high quality solar panel systems have a warranty of at least 25 years.
Top-of-the-line panels usually guarantee an output of no less than 90 percent after ten years and no less than 80 percent after 25 years.
Be wary of any company whose panels don’t come with a warranty.
Do they include a warranty on labor?
Many states require a warranty on labor in order to receive your rebate.
Reputable installers should have no problem including at least a 10-year warranty.
What is the final price?
Don’t get separate pricing for the parts, labor and rebates. Get a comprehensive price, so you can directly compare the total cost and kWh per year among providers.
Also, pay attention to the difference between purchasing your solar power system versus the leasing options available.
Leasing has become popular due to the low — or possibly no– up-front cost, but most experts agree that purchasing the system leads to a quicker payoff and return on your investment.
Taking into consideration warranties and servicing fees, the outcome should be that you choose whoever can give you the most output at the best price.
Apr 22, 2013 | Mortgage Guidelines, Mortgage Lenders
By David Bremer – Shamrock Financial Corp.
Breaking News! The HARP Loan is extended another 2 years until December 31, 2015.
That’s fabulous, but what’s HARP again?
HARP is the Home Affordable Refinance Program created for homeowners that either don’t have sufficient equity for a traditional refinance or are simply under-water and owe more than their home is currently worth. Without this program, most of these homeowners couldn’t take advantage of today’s fantastically low interest rates.
So far over 2 million homeowners have refinanced through HARP. The program was due to expire at the end of 2013 but it was determined that so many more homeowners are still eligible and in need of assistance so the FHFA (Federal Housing Finance Agency) decided to go ahead and extend the program until the end of 2015. Other than extending the end date, they have made no other changes at this time.
To qualify you must meet all of the following guidelines:
- Your loan must be owned by Fannie Mae or Freddie Mac. Note that that Fannie and Freddie don’t service the loans. Most conventional loans being serviced by lenders all across the country are actually owned or guaranteed by Fannie or Freddie so there is a good chance that if you have a conventional loan, it is too.
- Your current first mortgage must have been closed and sold to Fannie or Freddie on or before May 31, 2009. Some lenders took longer than others to deliver their loans to Fannie or Freddie but if you closed before this date you could be eligible.
- If you owe less than 80% of what your home is worth then you would qualify for traditional refinancing so you aren’t eligible for HARP but if you owe more than 80% of the value and even if you owe more than your home is worth, you may be eligible for HARP refinancing.
- You must be current on your mortgage with no late payments in the last 6 months and no more than one 30 day late payment in the last 12 months.
In addition:
- You can have a second mortgage or equity line and still be eligible. The new loan will not be able to refinance out of the second mortgage but you could still refinance the first mortgage for a lower rate.
- HARP is available for owner occupied properties, second homes and even investment properties.
- If you already refinanced under HARP then you aren’t eligible to do so again.
Don’t guess whether you are eligible or not! Check with a professional mortgage loan officer. They can quickly determine if you would qualify for this program or if you may qualify for another program. There are streamlined programs for FHA, VA, USDA and other mortgage loans. Even more importantly, if you checked in the past-check again!
When HARP was first announced, many people asked about refinancing and were told they didn’t qualify. The guidelines changed some at the beginning to allow more people to qualify. Also, even after the guidelines were expanded, it took many lenders a long time to be ready to handle the loans. As a result, many individuals who checked early on in the process were told they did not qualify and haven’t checked again. It is worth a phone call to find out for sure. Check with us at Shamrock and download our FREE HARP 2.0 Toolkit, which is filled with more information on qualifying for this program.
David Bremer – With over 8 years as a loan originator, David has always served the purchase market first because that is where you EARN a customer for life. Going above and beyond to ensure his clients are comfortable with the process and have a full understanding of their options are David’s strengths. David spends his time away from work with his wife, 3 children and their extended family and friends. David may be reached at david.bremer@shamrockfinancial.com.
Cell: 978-302-0475
Apr 22, 2013 | Mortgage Rates
Mortgage rates fell for the third consecutive week.
According to Freddie Mac, the average rate for a 30-year fixed rate mortgage fell by two basis points to 3.41 percent as compared to last week’s 3.43 percent and 3.90 percent year-over-year.
The average rate for a 15-year fixed rate mortgage was 2.64 percent as compared to last week’s 2.65 percent and 3.13 percent year-over-year.
Falling mortgage rates were attributed to reduced consumer spending.
Last week’s economic news includes the NAHB Wells Fargo Housing Market Index (HMI), with a reading of 42 for March.
This is four points below investor expectations and two points below February’s results.
A reading of 50 or above indicates that more of the builders surveyed have a positive outlook.
March results were impacted by builder concerns over tight builder credit, a lack of available lots and increasing construction costs.
Housing Starts Increased In March
More good news for housing arrived Tuesday when the U.S. Department of Commerce issued its monthly Housing Starts report.
Housing starts for March came in higher than anticipated at a seasonally adjusted annual rate of 1.04 million, against a consensus of 933,000 and also beat February’s reported 968,000 housing starts.
Housing starts rose by 7 percent over February, and rose 47 percent over March 2012, the highest year-to-year increase since 1992.
The Federal Reserve issued its Beige Book Report which is compiled from reports by the 12 districts of the Federal Reserve.
5 districts reported moderate economic growth, 5 districts reported modest growth, and 2 reported slight economic growth.
Based on the data contained in the Beige Book Report, economists are not expecting the Fed to make changes to its current quantitative easing (QE) program of purchasing $85 billion monthly in bonds and MBS; this may help mortgage rates remain steady; when MBS prices fall, mortgage rates typically rise.
What‘s Coming Up Next
The National Association of REALTORS® releases its Existing Home Sales report for March today.
The consensus is for 5.03 million homes sold on a seasonally adjusted annual basis, and against February’s 4.98 million existing homes sold.
Tuesday brings more housing news with the FHFA Home Price Index for February; FHFA is the federal agency overseeing Fannie Mae and Freddie Mac.
The U.S. Department of Commerce releases its New Home Sales for March on Tuesday.
The consensus is 421,000 new homes sold against February’s reading of 411,000 new homes sold.
Thursday’s Weekly Jobless claims are expected to come in at 351,000 as compared to last week’s 352,000.
Employment is a key factor in terms of consumers buying homes and qualifying for mortgage loans
Apr 19, 2013 | Home Selling Tips
Selling a house in the current market can be tricky, but there are certain mistakes an owner can make that will cause a Worcester County area home to sit still without a decent offer and cause the listing to go stale.
In order to prevent that from happening, make sure you are not making one of the following mistakes when putting your property on the market.
Overpricing
While your home may hold sentimental value, many times that value does not translate into dollars.
Be realistic about your asking price and know the details about your current market.
Look at the list price of similar houses on the market to get a rough idea of what you should ask for your property.
Make special note of the actual closing sales price as well as the time on market and listing to sales price ratio.
A licensed real estate agent can provide these details as well as give you their expert opinion based on experience and comparable properties.
Neglecting Repairs
Glaring problems with a property will cause the buyer to think the home was not properly maintained.
While it may cost some money, repairing things like holes in the walls, broken light fixtures or missing tiles can change a buyer’s entire attitude about a property.
Ask for help if you aren’t comfortable doing these things yourself.
A real estate professional will have a whole list of qualified referrals who they trust to help you get things fixed up.
Ignoring Curb Appeal
Overgrown and unweeded yards can cause potential buyers to drive right by.
Also, having junk in the front of your house or peeling paint can deter someone from considering the property.
Step across the street and take an honest look at your house – and then make necessary adjustments.
Fixing these items may be as easy as one weekend day of clean up and a little elbow grease.
And even though it’s not expensive to fix these issues, it can make thousands of dollars difference in the sale of your home.
Creating Or Allowing Foul Odors
Odorous foods, pet dander and the smell of smoke can be extremely distasteful to buyers.
Even if you are used to the smell, others entering your house will not be.
Make sure you air out the house, smoke only outdoors, and put away the litter boxes before an open house or showing.
Also, ask someone who isn’t at your home often to come in and give it a smell test.
Brutal honesty here might hurt a little bit, but it’s a lot better than allowing this problem to prevent a quicker sale of your home.
Without even realizing they’re sabotaging a potential sale, homeowners can make several mistakes when first trying to sell their home.
To find out what you can do to make your property really stand out to potential buyers, contact me, I can introduce to some of the finest Real Estate Professionals in our area. 978-728-5104
