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Short Sales Get Shorter: New Deadlines to go into Effect

by David Miller

 

As part of a settlement with state attorneys general, the five largest mortgage servicers are adopting new requirements for short sales, which is expected to speed-up what has been known as a lengthy process.

Here are some of the new requirements for servicers under the settlement:

  1. Servicers must provide borrowers with a decision within 30 days after receiving a short sale package request.
  2. Servicers will be required to notify a borrower, also within 30 days, if any necessary documents are missing to process the short sale request. 
  3.  Servicers must notify a borrower immediately if a deficiency payment is needed to approve the short sale. They also must provide an estimated amount for the deficiency payment needed for the short sale.
  4. Servicers are also required to form an internal group to review all short sale requests. 
  5. Banks will be considered in violation of the settlement requirements if they take longer than 30 days on more than 10 percent of the short sale requests. 

We will let you know when this officially goes into affect.  Great news for homeowners and the real estate market as a whole.

 

Source: Realtor Magazine



 

Today Apple finally rolled out their new Ipad.  To the surprise of everyone it was not called the Ipad 3, instead it was just called "The Ipad".  I can see how this is going to get confusing for people when they are talking about their Ipads, "I have the Ipad", "so you have the original Ipad", "no I have the new Ipad".  You can see how fun this is going to be.

Even though the name may be confusing the new Ipad has a lot of great features for REALTORS.  First of all, it has the new ISight camera which will allow you to take much better pictures than the ones which were taken by the Ipad 2.  The new ISight camera also allows for HD recording of video as well.  From a real estate perspective, this is a great news because now thepictures and videos of listings can now be done on one device.

It also now has a new retina display which will allow for cleaner presentations to potential clients.  One of the nicest things which is now available is the capability to tap into the 4G LTE network of either Verizon or AT&T.  This would allow you from the living room of a client to go to the web and show them how you would market their house online and include the video as well without much delay.  Can you imagine how impressive that would be to a potential client?

Another nice feature they added is a dictation button.  This would allow the Ipad to transcribe what you are saying into text and use it for either a text or even an e-mail.  Since REALTORS mostly work out of their car and are on the road a lot, this is a great feature from a convenience and safety perspective.

As you can see, these key features are exactly what the real estate community has been asking for. 

Is now the best time to invest in real estate?  I personally think so and here are my top three reasons why:.

  1. First of all, it's the best time to take advantage of the market and buy an investment property in Orlando.  Interest rates are still at historically levels, Orlando home prices have dropped dramatically, and there are over 15,000 homes to choose from in the Metro Orlando area.
  2. Investment properties will be easy to rent.  Since over 5 million past home owners have either lost their homes to foreclosure or had to do a short sale to gracefully exit from home ownership, these people need homes in to live in.  And since they currently don't have the credit to purchase a home, their only option is to rent an Orlando home.  With this being said, the demand for Orlando rental properties will continue to increase which will allow the rental prices to increase as more renters enter the market.
  3. If you have a five or even better ten year business plan on holding these properties, by the time you sell these Orlando investment properties the market value will be at a much higher level than they are now.
  4. Here's an extra fourth reason for free.  If you are able to pay cash for these Orlando investment properties, you will be able to achieve a positive ROI immediately.

So if you have the cash to buy a distressed Orlando home, you will be able to find a renter for it and achieve a positive ROI immediately.  And when you decide to sell that Orlando investment property in five to ten years, the market value on that investment property will be much higher than what you bought it for today.  Sounds like a pretty good business decision to me!  How about you?

For help in finding these distressed Orlando investment properties before, give us a call at 1-888-568-6637.  We are your Orlando distressed sales specialist and we are able to find these properties before anyone else.

Still a long haul until the distressed sales go away

by David Miller

I just listened to a conference call with Gary Keller (Keller Williams Realty) and Rick Sharga (VP of Realtytrac) and I thought that I would share some of the information with you which I thought you would find of value.  Realtytrac speicalizes in keeping track of how many home owners have received a foreclosure notice as well as how many have been foreclosed on.   During the interveiw Rick mentioned that we are not at the end of the tidal wave of foreclosures.  He feels that until the distressed homes are sold and absorbed into the market, we will continue to feel the negative effects of these properties on the market. He pointed out the following facts:

  • Foreclosures will not peak until 2012.
  • This year we will saw about 3.2 million home owners receive a foreclosure notice. This is a record and up from 2.8 million a year ago.
  • Will also saw about 1.2 million bank reposessions this year.  This is also a record and up from 900,000 a year ago.
  • There are currently 5 million seriously deliquent loans which are currently not in foreclosure (shadow inventory) and these homes will enter the pipeline over the next 18 months.
  • In 2012 we will see continued levels of foreclosure activity although the numbers SHOULD get better as the year progresses.
  • In 2013 we SHOULD get back to normal foreclosure activity on a monthly basis.  However there will still be an inventory of one million foreclosured homes which would still need to be absorbed into the market.

Based on these numbers depening we may not see a stabilization of prices until the middle or end of 2013.  They also both fel that the best way to improve these numbers is for more jobs to be created.

Something else I found interesting is that they thought the low end of the market (lower priced properties) may have already bottomed out, however the higher end of the market may still have some room to drop.  This makes sense because when you think about it, how low can a condo actually sell for?  You can't pay someone to start taking these properties.

They also mentioned that there will be a problem in the move up market.  Over the past couple of years 6 million potential buyers have been wiped out by either doing a short sale or a foreclosure on their homes.  Their credit has been shot and they won't be able to buy another home for the next 5 to 7 years. They mentioned that they think that the government may step in and give a mulligan for these past homeowners because if they don't where are the move up buyers going to come from?.  Time will tell!

In Orlando, we continue to see 65% to 70% of all homes being sold as distressed sales (Orlando bank owned homes or short sales).  Since a large majority of homes which are currently on the Orlando real estate market are distressed sales this trend will continue.

Keller Williams Realty Signs Deal with CitiMortgage

by David Miller
AUSTIN, TEXAS (January 24, 2011)–Keller Williams Realty, Inc. announced today that it has entered into an agreement with CitiMortgage to create a customized mortgage services program for the company’s offices across the United States. This type of agreement is the first of its kind for Keller Williams Realty and CitiMortgage.
 
CitiMortgage will now offer Keller Williams Realty clients reduced fees on jumbo loans, and as a part of the SureStart Pre-Approval® program, will not charge a pre-approval fee for Keller Williams agent’s buyers. As a part of CitiMortgage’s commitment to exceptional service, they also offer all Keller Williams borrowers an On Time Closing Guarantee of $1,500.  
 
“Our goal is to ensure that our associates have access to the best resources possible so they can focus on their main priority-their client. We are confident that with five million mortgage customers, CitiMortgage has the experience and expertise to support our Market Centers and associates at the highest level possible," said Anthony Azar, director of strategic business alliances at Keller Williams Realty.
 
CitiMortgage will also support Keller Williams Realty in its efforts to help associates win more business. In addition, Market Centers will have the opportunity for an in-house mortgage representative, as well as a dedicated support and fulfillment team for Keller Williams associates and their clients.
 
“CitiMortgage was looking for a national realtor partner and after reviewing Keller Williams business model and culture, we realized this was a perfect fit for both companies," said Fred Bolstad, managing director of National Sales for CitiMortgage.  “CitiMortgage can provide the strong training and tools their agents need to succeed. Our service-oriented national lending platform can help their customers realize the dream of home ownership in a more efficient and effective way."
 
###
About CitiMortgage:
CitiMortgage is headquartered in St. Louis and is a division of Citigroup. Citi, the leading global financial services company, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Through Citicorp and Citi Holdings, Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management. Additional information may be found at www.citigroup.com or www.citi.com.
 
About Keller Williams Realty, Inc.:
Founded in 1983, Keller Williams Realty Inc. is the third-largest real estate franchise operation in the United States, with 690 offices and more than 80,000 associates in the United States and Canada. The company, which began franchising in 1990, has an agent-centric culture that emphasizes access to leading-edge education and promotes an economic model that rewards associates as stakeholders and partners. The company also provides specialized agents in luxury homes and commercial real estate properties. For more information, or to search for homes for sale visit Keller Williams Realty online at (www.kw.com).

Top Ten most "Undervalued Cities"

by David Miller

We all know that pricing on residential real estate peaked during the second quarter of 2006 and since then the pricing has dramatically fallen.  Some markets have fallen as much as 62% (ouch) while others have been more moderate. 

What we are starting to find is that some markets are started to "over-correct"!  This occurs when the pricing of homes actually falls below the "equilibrium home price" for a market.  The equilibrium home price takes into account local demographic information such as income, job growth, and housing affordability, to determine where prices should be sitting based on what the local market conditions can sustain.

But according to Local Market Monitor, a real estate forecasting and risk assessment firm, the 10 most undervalued housing markets in the United States and the percentage by which they are undervalued are:

  1. Merced, California: 32%
  2. Las Vegas-Paradise, Nevada: 27%
  3. Killeen-Temple-Fort Hood, Texas: 25%
  4. Akron, Ohio: 22%
  5. Cleveland-Elyria-Mentor, Ohio: 21%
  6. Warren-Troy-Farmington Hills, Michigan: 21%
  7. Mansfield, Ohio: 20%
  8. McAllen-Edinburg-Mission, Texas: 20%
  9. Reno-Sparks, Nevada: 20%
  10. Stockton, California: 19%

With all of the price declines we have had in our market, I'm personally suprised that Orlando was not on the top ten list.  In either case, it's a great time to take advantage of the market and buy a house!

Seller's Drop Asking Price on Fewer Homes in December

by David Miller

I just read an article from DSNEWS.com which talked about how fewer sellers lowered their pricing in December than previous months.  Depending on your local market not lowering your price on your house may be the worst thing you could have NOT done.  Since the home values in Metro Orlando are still declining and are expected to continue to decline even further because of all of the distressed properties, pricing your house to sell is your best option.

The name of the game in a declining market is to sell your house before your neighbors do because if you don't, you will help them sell their house.  I'm not talking about giving your house away however I'm talking about pricing your house  well enough so that it shows value to the market place.  The worst thing you can do is to price your house too high and continue to follow the market down as it drops. 

I can go into MLS and pull down any neighborhood and clearly show you from the acctive listings which homes are following the market.  They all started at a price above market value and since then have continued to have multiple price drops with no success.  In order to get your house sold in today's real estate market in Orlando is to price it ahead of the market!  You will sell it faster and get more money from it than following the market and selling your house in six months for a lot less!

The key to getting your house priced appropriately is to speak with a full time professional REALTOR who is very knowledgable of the local market and has the expertise to get your home sold. 

National home Sales down 25%

by David Miller

According to a report from the National Association of Realtors (NAR), the number of homes sold plummeted more than 25%, compared with the previous quarter.  The national median price for a single-family home sold during the quarter was $177,900, down 0.2% from the same period a year ago and up 0.6% from the second quarter of 2010.  Single-family home prices rose 2.5% to $253,400 in the Northeast, the only region that showed price improvement. Midwest prices fell 3% to $145,600, prices dropped 1.9% in the South and 0.4% in the West region.  The metro area with the biggest gain was Burlington, Vt., where the median price of $286,300 was 17.6% higher than 12 months earlier. The biggest loser was Ocala, Fla., down 20% to $82,200. 

 

San Jose, Calif., recorded the highest median price -- $628,700 -- during the quarter, just nosing out Honolulu at $628,100.  Youngstown, Ohio, the old steel town, had the lowest median sale price, at $60,400.  Condo prices fared worse than those of single-family houses. The national median fell 3.9% from 12 months earlier to $171,400.  Palm Bay, Fla., had the biggest year-over-year loss: down 32% to $73,000; Jacksonville. Fla., was off 31% to $63,200. Phoenix condo prices also plunged, down 26.6% to $73,300.  Condo prices in the New York metro area soared, up 34.5% to $400,000, the most, by far, of any city.

With home sales this past summer at the lowest level in more than a decade, the lasat thing the real estate market needs is another kick in the teeth.  But as a scandal unfolds over mortgage lenders’ shoddy preparation of foreclosure documents, the fallout is beginning to hammer the housing market, especially in states like Florida where distressed properties are abundant.  Three major mortgage lenders — Bank of America, GMAC Mortgage and JPMorgan Chase — have said they are suspending foreclosures in the 23 states where they first need a judge’s approval.  They are also waving off Fannie Mae from selling any of the foreclosed homes whose loans they sold to Fannie. 

 

More broadly, the revelations about the sloppy paperwork are emboldening homeowners and law enforcement officials in many states to question whether lenders rightfully hold the notes underlying foreclosed properties — further chilling the housing market.  Distressed properties, many of which are in foreclosure, make up about a third of all home sales. “Foreclosures are going to slow to a crawl,” said Guy D. Cecala, publisher of the trade magazine Inside Mortgage Finance.  Of the 23 states where foreclosures need court approval, Florida has by far the most trouble — about a half-million cases clog its courts — and the moratoriums are having a noticeable effect.  Because most lenders sold their mortgages to Fannie Mae, it is largely that company that has been sending e-mails to real estate agents about putting off deals and removing houses from the market.

The Shadow Inventory of homes continues to rise

by David Miller

As the approximate 2.5 million homes in foreclosure complete the process, national delinquencies will fall, and REO inventory and short sales are expected to trend upward, according to a report released today by John Burns Real Estate Consulting.  There are currently 562,000 bank-owned homes and 2.5 million mortgages more than 90 days delinquent in the market.  Single-family starts as well as single-family and multi-family permits were down in August, leaving total completions last month 33% lower  than July, at 587,000 units.

 

Foreclosures grew by 4% month-over-month.  Shadow inventory is inevitably growing and affecting the market already hit hard by high levels of distressed mortgages, such as Stockton, Calif. and Orlando, Fla., which have an excess supply of inventory already. According to John Burns' data, the two cities have a 27 shadow months supply of homes, 22,344 and 81,309 homes, respectively.  CoreLogic reported that national home prices in July remained steady, but existing home sales decreased 2.6% in August compared to July, according to the National Association of Realtors. New home sales dropped 12% over the same period.

Displaying blog entries 1-10 of 72

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David Miller
Keller Williams Heritage Realty
3737 Lake Emma Road
Lake Mary FL 32746
Toll Free:1- 888-568-6637